Canada Judgment

Supreme Court of Canada

Canadian Pacific Ltd. v. McCain Produce Co. Ltd. et al.

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Source document

01

Holding and result

Section 4 of the conditions attached to the bill of lading did not operate to preclude the respondents' claim for consequential damages; therefore the appeal was dismissed.

Court disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Judgment of the courts below upheld that section 4 does not preclude claim for consequential damages

02

Material facts

Parties

Canadian Pacific Limited

Appellant / Defendant Counsel: E. Neil McKelvey; Robert G. Vincent

McCain Produce Company Limited

Respondent / Plaintiff Counsel: D.M. Gillis, Q.C.; R.G. Gillis

Toner Brothers Limited

Respondent / Plaintiff Counsel: D.M. Gillis, Q.C.; R.G. Gillis

Pirie Potato Company Limited

Respondent / Plaintiff Counsel: D.M. Gillis, Q.C.; R.G. Gillis

Amounts and remedies

  • Number of Judges: 5

03

Procedural history

  1. Posture

    Civil Appeal (carriage of Goods) / On Appeal to the Supreme Court of Canada From the Court of Appeal for New Brunswick; Final Disposition by Supreme Court of Canada

04

Questions and positions

Legal issues

Whether section 4 of the conditions attached to the bill of lading precludes the respondents' claim for consequential damages

Party arguments

Applicant
Appellant argued that section 4 of the conditions attached to the bill of lading limited liability and thereby precluded any claim by the respondents for consequential damages.
Respondent
Respondents argued that section 4 did not have the effect of precluding their claim for consequential damages and that such damages remained recoverable.

05

Court’s reasoning

  1. 01

    Common law principles applied by the Supreme Court of Canada in this judgment

    Exclusion or limitation clauses in bills of lading must be construed according to their proper contractual scope and not extended to bar liabilities not clearly covered.

  2. 02

    Supreme Court of Canada decision in this case

    Consequential damages are recoverable unless there is a clear and unambiguous clause expressly barring them.

06

Ratio, limits and disposition

Ratio decidendi

Section 4 of the conditions attached to the bill of lading did not operate to preclude the respondents' claim for consequential damages; therefore the appeal was dismissed.

Court disposition

Appeal dismissed

  • Appeal dismissed with costs
  • Judgment of the courts below upheld that section 4 does not preclude claim for consequential damages

Source and reliance status

Supreme Court of Canada · 25 June 1981

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Judgment text

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Source document

Supreme Court of Canada

Judgment· 25 June 1981

[1981] 2 SCR 219

Canadian Pacific Ltd. v. McCain Produce Co. Ltd. et al. Collection Supreme Court Judgments Date 1981-06-25 Report [1981] 2 SCR 219 Judges Martland, Ronald; Ritchie, Roland Almon; Estey, Willard Zebedee; McIntyre, William Rogers; Chouinard, Julien On appeal from New Brunswick Subjects Transportation Decision Content Supreme Court of Canada Canadian Pacific Ltd. v. McCain Produce Co. Ltd. et al., [1981] 2 S.C.R. 219 Date: 1981-06-25 Canadian Pacific Limited (Defendant) Appellant; and McCain Produce Company Limited, Toner Brothers Limited and Pirie Potato Company Limited (Plaintiffs) Respondents. 1981: June 25. Present: Martland, Ritchie, Estey, McIntyre and Chouinard JJ.

ON APPEAL FROM THE COURT OF APPEAL FOR NEW BRUNSWICK Carriage of goods—Bills of lading—Section of conditions attached to bill of lading allegedly limiting liability—Respondent’s claim for consequential damages not precluded by that section. APPEAL from a judgment of the Court of Appeal for New Brunswick[1], varying a judgment of Barry J. Appeal dismissed. E. Neil McKelvey and Robert G. Vincent, for the appellant. D.M. Gillis, Q.C., and R.G. Gillis, for the respondents. The judgment of the Court was delivered orally by MARTLAND J.—We are all of the opinion that the judgments in the courts below were correct in holding that section 4 of the conditions attached to the bill of lading does not have the effect of precluding the respondent’s claim for what has been compendiously described in the judgments below as consequential damages. The appeal is therefore dismissed with costs. Judgment accordingly. Solicitors for the appellant: McKelvey, Macaulay, Machum, St. John. Solicitors for the respondents: Gilbert, McGloan, Gillis & Jones, St. John. [1] (1980), 113 D.L.R. (3d) 584, 30 N.B.R. (2d) 476, 70 A.P.R. 476.

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Canadian Pacific Ltd. v. McCain Produce Co. Ltd., [1981] 2 S.C.R. 219

Case cited

Court of Appeal for New Brunswick (1980), 113 D.L.R. (3d) 584, 30 N.B.R. (2d) 476, 70 A.P.R. 476

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