Electric Despatch Co. of Toronto v. Bell Telephone Co. of Canada

Electric Despatch Co. of Toronto v. Bell Telephone Co. of Canada

The covenant did not extend to communications passed directly between subscribers over the Bell Company's wires; the Bell Company did not 'transmit' such orders within the meaning of the agreement and had no obligation to monitor or intercept subscriber communications to prevent such orders. Appeal dismissed.

Citation
(1891) 20 SCR 83
Parties
Appellant/plaintiff: Electric Despatch Company of Toronto; Respondent/defendant: Bell Telephone Company of Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 November 1891
Procedural Posture
Contract Appeal / Supreme Court of Canada on Appeal From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs
Legal Topics
Construction of Contract, Telephone Service, Use of Wires, Assignment of Business, Non Compete Covenant, Injunction, Public Policy
Source Language
English
Contract Telecommunications Law Equity Construction of Contract Telephone Service Use of Wires Assignment of Business Non Compete Covenant +2 more

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Parties

Electric Despatch Company of Toronto

Appellant/plaintiff

Bell Telephone Company of Canada

Respondent/defendant

Procedural Posture

Contract Appeal / Supreme Court of Canada on Appeal From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether the Bell Company 'transmitted' orders within the meaning of the covenant when communications between subscribers passed over its wires
  2. 2 Whether the Bell Company was obliged to monitor or intercept subscriber communications to prevent orders for messengers, cabs or similar services
  3. 3 Whether the covenant could be construed to restrict subscribers' use of telephone lines and thereby create a monopoly or impinge public rights

Ratio Decidendi

The covenant did not extend to communications passed directly between subscribers over the Bell Company's wires; the Bell Company did not 'transmit' such orders within the meaning of the agreement and had no obligation to monitor or intercept subscriber communications to prevent such orders. Appeal dismissed.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs