Salmon River Co. v. Burt Bros.

Salmon River Co. v. Burt Bros.

Majority held Clause 3 did not exempt the Company from liability for the negligence that caused the damage because the clause could reasonably be read to apply to matters not touching the Company's negligence and the accident arose out of work carried on exclusively by the Company and outside the contractual scope; therefore the exemption did not apply and respondents' judgment stands.

Citation
[1953] 2 SCR 117
Parties
Appellant / Defendant: Salmon River Logging Company Limited; Respondents / Plaintiffs: Charles Harvey Burt and John Joseph Burt carrying on business as Burt Bros
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
26 June 1953
Procedural Posture
Appeal (contract/negligence) to Supreme Court of Canada / On Appeal From the Court of Appeal for British Columbia
Outcome
Appeal dismissed
Legal Topics
Exemption Clause, Scope of Contract (four Corners), Indemnity Interpretation, Contra Proferentem, Subrogation
Source Language
English
Contract Tort Negligence Insurance/indemnity Exemption Clause Scope of Contract (four Corners) Indemnity Interpretation Contra Proferentem +1 more

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Parties

Salmon River Logging Company Limited

Appellant / Defendant

Charles Harvey Burt and John Joseph Burt carrying on business as Burt Bros

Respondents / Plaintiffs

Procedural Posture

Appeal (contract/negligence) to Supreme Court of Canada / On Appeal From the Court of Appeal for British Columbia

Legal Issues

  1. 1 Whether the contractual exemption clause (Clause 3) excludes the appellant's liability for negligence
  2. 2 Whether the damage to the truck arose within the scope (four corners) of the contract so as to be caught by the exemption clause
  3. 3 How indemnity and insurance language should be construed with respect to third party claims and subrogation

Ratio Decidendi

Majority held Clause 3 did not exempt the Company from liability for the negligence that caused the damage because the clause could reasonably be read to apply to matters not touching the Company's negligence and the accident arose out of work carried on exclusively by the Company and outside the contractual scope; therefore the exemption did not apply and respondents' judgment stands.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Trial judgment for respondents for $5,549.29 maintained