Canada Judgment

Supreme Court of Canada

Derkson v. Lloyd

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Supreme Court allowed the owner’s appeal because there were no adequate grounds to reverse the trial judge’s finding that the driver’s conduct did not amount to gross negligence or wilful and wanton misconduct; on that basis the statutory bar applied and the trial judgment dismissing the action was restored.

Court disposition

Appeal allowed; judgment of trial judge restored; cross-appeal dismissed

Orders

  • Appeal allowed and judgment of the trial Judge restored with costs throughout
  • Cross-appeal dismissed without costs

02

Material facts

Parties

Lloyd

Plaintiff Counsel: G. H. Yule K.C.

Milton

Defendant (driver)

Derkson

Defendant (owner, Appellant) Counsel: T. N. Phelan K.C.

Amounts and remedies

  • Damages Awarded by Court of Appeal to Plaintiff: CAD 1,393.4

03

Procedural history

  1. Posture

    Negligence – Motor Vehicle Passenger Injury Appeal / Appeal to Supreme Court of Canada From Court of Appeal; Trial Judge Dismissed Action on Motion for Non Suit

04

Questions and positions

Legal issues

Party arguments

Applicant
Appellant (owner) argued the Court of Appeal had no adequate basis to reverse the trial judge’s finding that the driver was not grossly negligent or wilful and wanton in misconduct and that therefore no cause of action remained against the owner under s.85 of The Vehicles Act; sought restoration of trial judge’s dismissal.
Respondent
Respondent (plaintiff) argued the Court of Appeal was correct to reverse the trial judge and award damages; also contended the Supreme Court’s review should be confined to the specific issue mentioned in the Court of Appeal’s reasons for granting leave (whether the vehicle was wrongfully taken).

05

Court’s reasoning

  1. 01

    The Vehicles Act, Sask., 1934-35, c. 68, s.85

    Owner of a motor vehicle is liable to the same extent as the operator for loss or injury caused by the vehicle, unless at the time it had been stolen or otherwise wrongfully taken from his possession.

  2. 02

    The Vehicles Act, 1936 amendment c.106 (subsection 2 to s.85)

    Passenger actions against owner or driver are barred except where there has been gross negligence or wilful and wanton misconduct by the driver that contributed to the injury (subsection added 1936).

  3. 03

    Supreme Court of Canada reasoning in Derkson v. Lloyd [1938] S.C.R. 315

    Findings of fact by a trial judge on negligence should not be reversed by appellate courts absent adequate grounds; appellate interference requires clear justification.

  4. 04

    Supreme Court of Canada reasoning in Derkson v. Lloyd [1938] S.C.R. 315

    An appeal to a higher court is not limited strictly to the point mentioned in the reasons for granting leave to appeal; the appellate court’s jurisdiction is broader by established practice.

06

Ratio, limits and disposition

Ratio decidendi

The Supreme Court allowed the owner’s appeal because there were no adequate grounds to reverse the trial judge’s finding that the driver’s conduct did not amount to gross negligence or wilful and wanton misconduct; on that basis the statutory bar applied and the trial judgment dismissing the action was restored.

Obiter and limits

  • The Court observed there was no reported authority limiting the scope of an appeal to the point mentioned in the reasons for granting leave but held the established practice permits broader review.
  • The cross-appeal for increase of damages was dismissed without costs.

Court disposition

Appeal allowed; judgment of trial judge restored; cross-appeal dismissed

  • Appeal allowed and judgment of the trial Judge restored with costs throughout
  • Cross-appeal dismissed without costs

Source and reliance status

Supreme Court of Canada · 2 May 1938

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Judgment text

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Source document

Supreme Court of Canada

Judgment· 2 May 1938

[1938] SCR 315

Derkson v. Lloyd Collection Supreme Court Judgments Date 1938-05-02 Report [1938] SCR 315 Judges Duff, Lyman Poore; Crocket, Oswald Smith; Davis, Henry Hague; Kerwin, Patrick; Hudson, Albert Blellock On appeal from Saskatchewan Subjects Torts Decision Content Supreme Court of Canada Derkson v. Lloyd, [1938] S.C.R. 315 Date: 1938-05-02 Derkson v. Lloyd 1938: April 29; 1938: May 2. Present: Duff C.J. and Crocket, Davis, Kerwin and Hudson JJ.

ON APPEAL FROM THE COURT OF APPEAL FOR SASKATCHEWAN Negligence—Motor vehicles—Appeal—Motor car accident—Action by passenger against driver and owner of the car for damages for injuries—Appeal by owner to Supreme Court of Canada from judgment of Court of Appeal which had reversed judgment of trial Judge dismissing action—Restoration of judgment of trial Judge on ground that there were no adequate grounds for reversing his finding that there was no “gross negligence or wilful and wanton misconduct” by driver (The Vehicles Act, Sask., 1934-35, c. 68, s. 85, as amended) —Respondent’s contention for confinement of appeal to point mentioned in reasons for granting leave to appeal (as to whether owner’s car was “wrongfully taken out of his possession,” within s. 85 of said Act). APPEAL by the defendant Derkson from the judgment of the Court of Appeal for Saskatchewan[1] allowing the plaintiff’s appeal from the judgment of Maclean J. (on motion for non-suit) dismissing the plaintiff’s action, which was brought to recover damages for injuries alleged to have been sustained by her in a motor car accident while she was a passenger in the motor car, which was driven by the defendant Milton and was owned by the defendant (appellant) Derkson. The Court of Appeal gave judgment to the plaintiff against the defendants for $1,393.40 and costs. Special leave was given by the Court of Appeal to

the defendant Derkson to appeal to the Supreme Court of Canada[2]. Section 85 of The Vehicles Act, 1935, Sask., (1934-35, c. 68), provided that:— In all cases when any loss, damage or injury is caused to any person by a motor vehicle, the person operating it at the time shall be liable for the loss, damage or injury, if it was caused by his negligence or improper conduct, and the owner thereof shall also be liable to the same extent as the operator unless at the time of the injury the motor vehicle had been stolen from him or otherwise wrongfully taken out of his possession or out of the possession of any person entrusted by him with the care thereof. Subsection 2 of that section, added by c. 106 of the statutes of 1936, provided that:— (2) Except only in (the case of motor vehicles which are ordinarily used for carrying passengers for hire or gain, no action shall lie against either the owner or the driver of a motor vehicle by a person who is, after the date on which this subsection comes into force, carried as a passenger in that motor vehicle or by his personal (representative or next-of-kin for any injury, loss or damage sustained by such person by reason of the operation of that motor vehicle by the driver thereof, unless there has been gross negligence or wilful and wanton misconduct on the part of the driver of the vehicle and unless such gross negligence or wilful and

wanton misconduct contributed to the injury, loss or damage in respect of which the action is brought. On the hearing of the appeal to the Supreme Court of Canada, on Friday, April 29, 1938, at the conclusion of the argument of counsel for the respondent, the members of the Court retired for consultation, and, on their returning to the Bench, the Chief Justice announced as follows:— “We have come to the conclusion that in this case there are really no adequate grounds for reversing the finding of the learned trial Judge that there was no gross negligence or wilful and wanton misconduct. On that ground, the appeal must be allowed.” As to the contention by counsel for the respondent that the appeal should have been confined to the point mentioned in the reasons given by the Court of Appeal as warranting its granting leave to appeal, namely, whether or not, on the facts and circumstances in evidence, the appellant’s motor car was wrongfully taken out of his possession within the meaning of s. 85 of The Vehicles Act, Sask., 1934-35, c. 68—the Court held that the jurisdiction is not so limited; while there was no reported decision, the practice was decisive upon the point. On Monday, May 2, 1938, the following judgment was announced: This appeal is allowed and the judgment of the trial Judge restored with costs throughout; and the cross-appeal [which asked for increase of damages] dismissed without costs. Appeal allowed with costs. T. N. Phelan K.C. for the appellant. G. H. Yule K.C. for the respondent. [1] [1937] 3 W.W.R. 504. [2] [1938] 1 W.W.R. 95.

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Authorities

Authorities used by the court

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

[1937] 3 W.W.R. 504

Case cited

[1938] 1 W.W.R. 95

Case cited

The Vehicles Act, Sask., 1934-35, c. 68, s. 85

Legislation

Legislation referenced in the available case record.

Statutes of 1936 c. 106 (subsection 2 to s.85)

Legislation

Legislation referenced in the available case record.

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