Schreiber Brothers Ltd. v. Currie Products Ltd. et al.

Schreiber Brothers Ltd. v. Currie Products Ltd. et al.

Where a trial judge, after full consideration of the evidence, excludes other probable causes and accepts the necessary factual findings, he may permissibly infer a latent defect in goods supplied and award damages for breach of the implied condition of merchantability; an appellate court should not overturn such a conclusion absent misapprehension of evidence or failure to consider relevant evidence.

Citation
[1980] 2 SCR 78
Parties
Appellant (plaintiff): Schreiber Brothers Limited; Respondent (defendant): Currie Products Limited; Respondent (third Party): Gulf Oil Canada Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 March 1980
Procedural Posture
Contract (sale of Goods) / Appeal (supreme Court of Canada From Court of Appeal for Ontario)
Outcome
Appeal allowed; judgment of the Ontario Court of Appeal set aside; trial judgment restored.
Legal Topics
Implied Condition of Merchantability, Burden of Proof, Appellate Review of Factual Findings, Inference of Defect, Damages
Source Language
English
Contract Sale of Goods Commercial Law Evidence Implied Condition of Merchantability Burden of Proof Appellate Review of Factual Findings Inference of Defect +1 more

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Parties

Schreiber Brothers Limited

Appellant (plaintiff)

Currie Products Limited

Respondent (defendant)

Gulf Oil Canada Limited

Respondent (third Party)

Procedural Posture

Contract (sale of Goods) / Appeal (supreme Court of Canada From Court of Appeal for Ontario)

Legal Issues

  1. 1 Whether the implied condition of merchantability under s.15(2) of the Sale of Goods Act was breached
  2. 2 Who bears the burden of proof to show the product was defective and when that defect must be proved to have arisen
  3. 3 Extent to which an appellate court may overturn trial judge findings of fact and credibility

Ratio Decidendi

Where a trial judge, after full consideration of the evidence, excludes other probable causes and accepts the necessary factual findings, he may permissibly infer a latent defect in goods supplied and award damages for breach of the implied condition of merchantability; an appellate court should not overturn such a conclusion absent misapprehension of evidence or failure to consider relevant evidence.

Court Disposition

Appeal allowed; judgment of the Ontario Court of Appeal set aside; trial judgment restored.

Orders

  • Appeal allowed
  • Judgment of the Ontario Court of Appeal set aside