Paoli v. Vulcan Iron Works Ltd.

Paoli v. Vulcan Iron Works Ltd.

Where parties to general employment agreed (or manifested by conduct) an increased annual remuneration, that increase becomes a contractual term enforceable until validly altered; because there was no evidence the parties intended to evade the Wartime Salaries Order and the Salaries Controller granted approval as from January 1, 1943, the remuneration of $7,500 became enforceable from that date and unpaid arrears are recoverable.

Citation
[1950] SCR 114
Parties
Appellant / Plaintiff: Ambrose A. Paoli; Respondent / Defendant: Vulcan Iron Works Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 December 1949
Procedural Posture
Civil Appeal (employment) / Supreme Court of Canada Decision on Appeal From the Court of Appeal for Manitoba
Outcome
Appeal allowed
Legal Topics
General Hiring, Salary Increase, Illegality Under Statutory Salary Controls, Wartime Salaries Order Compliance, Unlawful Reduction of Remuneration, Remedies for Unpaid Wages
Source Language
English
Labour Law Contract Law Administrative Law General Hiring Salary Increase Illegality Under Statutory Salary Controls Wartime Salaries Order Compliance Unlawful Reduction of Remuneration +1 more

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Parties

Ambrose A. Paoli

Appellant / Plaintiff

Vulcan Iron Works Limited

Respondent / Defendant

Procedural Posture

Civil Appeal (employment) / Supreme Court of Canada Decision on Appeal From the Court of Appeal for Manitoba

Legal Issues

  1. 1 Whether an agreed increase in salary in a general hiring becomes a term of the contract enforceable until validly altered
  2. 2 Whether the agreement to increase salary was illegal or unenforceable because it lacked prior approval under the Wartime Salaries Order
  3. 3 Effect of retrospective or delayed approval by the Salaries Controller on enforceability

Ratio Decidendi

Where parties to general employment agreed (or manifested by conduct) an increased annual remuneration, that increase becomes a contractual term enforceable until validly altered; because there was no evidence the parties intended to evade the Wartime Salaries Order and the Salaries Controller granted approval as from January 1, 1943, the remuneration of $7,500 became enforceable from that date and unpaid arrears are recoverable.

Court Disposition

Appeal allowed

Orders

  • Judgment for appellant in the sum of 3162.49 with costs in all courts