Touchette v. Pizzagalli

Touchette v. Pizzagalli

Where a vendor bound by a special warranty repeatedly refuses or fails to perform the obligation to repair latent defects, the vendor cannot rely on the restrictive warranty clause to defeat the buyer’s statutory redhibitory remedies; the buyer was entitled to rescind and recover the purchase price because the seller repudiated performance and seller, as dealer/manufacturer, was presumed to have known the defect; use during repair attempts did not bar rescission where use was necessary and consented to by vendor.

Citation
[1938] SCR 433
Parties
Appellant (vendor): Albert Touchette; Respondent (purchaser): Theodoro Pizzagalli
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
25 March 1938
Procedural Posture
Appeal Civil Sale (redhibitory Action) / Supreme Court of Canada on Appeal From Court of King’s Bench, Province of Quebec
Outcome
Appeal dismissed with costs
Legal Topics
Latent Defect, Redhibition, Warranty Exclusion, Rescission / Restitutio in Integrum, Damages, Presumption of Seller Knowledge
Source Language
English
Contract Sale of Goods Warranty Civil Law (quebec) Latent Defect Redhibition Warranty Exclusion Rescission / Restitutio in Integrum +2 more

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Parties

Albert Touchette

Appellant (vendor)

Theodoro Pizzagalli

Respondent (purchaser)

Procedural Posture

Appeal Civil Sale (redhibitory Action) / Supreme Court of Canada on Appeal From Court of King’s Bench, Province of Quebec

Legal Issues

  1. 1 Whether the manufacturer/vendor special warranty clause excluded the buyer’s redhibitory remedies under the Civil Code
  2. 2 Whether the water leakage constituted a latent defect rendering the car unfit for its intended use
  3. 3 Whether the vendor’s repeated, ineffective repairs constituted repudiation of the special warranty and justified annulment

Ratio Decidendi

Where a vendor bound by a special warranty repeatedly refuses or fails to perform the obligation to repair latent defects, the vendor cannot rely on the restrictive warranty clause to defeat the buyer’s statutory redhibitory remedies; the buyer was entitled to rescind and recover the purchase price because the seller repudiated performance and seller, as dealer/manufacturer, was presumed to have known the defect; use during repair attempts did not bar rescission where use was necessary and consented to by vendor.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed and judgment of Court of King’s Bench affirming annulment of the sale upheld
  • Appellant ordered to reimburse respondent purchase price of $2,560.00 with interest from date of institution of action