Paterson & Sons Ltd. v. Lawrence Corp. Ltd.

Paterson & Sons Ltd. v. Lawrence Corp. Ltd.

The Supreme Court held the U.S. settlement/judgment was not conclusive against the non‑party charterer; Quebec law (including Code of Civil Procedure art.178) allows the charterer to raise defenses available under the law of the place of occurrence (including contributory negligence); the action récursoire accrued only upon final disposition of the principal claim and was timely; the release to the owner did not bar recourse by the owner against the charterer because the charterer was a primary debtor under the charter‑party. Accordingly the appeals were dismissed and the Court of Appeal's judgment was varied arithmetically to award $23,082.81 to Paterson.

Citation
[1974] SCR 31
Parties
Appellant / Plaintiff: N.M. Paterson & Sons Ltd.; Respondent / Defendant: St. Lawrence Corporation Limited; Claimant / Injured Third Party: Charles F. Gregory
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
31 January 1973
Procedural Posture
Appeal — Civil Action in Recourse Under Charter‑party (transportation/maritime) / Appeal to the Supreme Court of Canada From Court of Queen's Bench (quebec); Judgment Delivered
Outcome
Appeal and cross‑appeal dismissed; Court of Appeal judgment varied to increase amount payable to N.M. Paterson & Sons Ltd. to $23,082.81.
Legal Topics
Charter‑party, Dunnage, Unseaworthiness, Contributory Negligence, Lex Loci, Action Récursoire, Foreign Settlement and Foreign Judgment, Prescription Interruption, Release/res Judicata
Source Language
English
Transportation Maritime Law Contract Law Conflict of Laws Civil Procedure Prescription/statute of Limitations Tort Law Charter‑party +8 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 6 Authorities cited 7 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

N.M. Paterson & Sons Ltd.

Appellant / Plaintiff

St. Lawrence Corporation Limited

Respondent / Defendant

Charles F. Gregory

Claimant / Injured Third Party

Procedural Posture

Appeal — Civil Action in Recourse Under Charter‑party (transportation/maritime) / Appeal to the Supreme Court of Canada From Court of Queen's Bench (quebec); Judgment Delivered

Legal Issues

  1. 1 Whether a U.S. settlement/judgment is conclusive against a non‑party charterer sued in Quebec
  2. 2 Which law governs liability for the accident (lex loci) and availability of contributory negligence
  3. 3 Whether a release obtained from the injured longshoreman bars the shipowner’s recourse against the charterer

Ratio Decidendi

The Supreme Court held the U.S. settlement/judgment was not conclusive against the non‑party charterer; Quebec law (including Code of Civil Procedure art.178) allows the charterer to raise defenses available under the law of the place of occurrence (including contributory negligence); the action récursoire accrued only upon final disposition of the principal claim and was timely; the release to the owner did not bar recourse by the owner against the charterer because the charterer was a primary debtor under the charter‑party. Accordingly the appeals were dismissed and the Court of Appeal's judgment was varied arithmetically to award $23,082.81 to Paterson.

Court Disposition

Appeal and cross‑appeal dismissed; Court of Appeal judgment varied to increase amount payable to N.M. Paterson & Sons Ltd. to $23,082.81.

Orders

  • Appeal dismissed with costs
  • Cross‑appeal dismissed with costs