Evans Products Co. Ltd. v. Crest Warehousing Co. Ltd.

Evans Products Co. Ltd. v. Crest Warehousing Co. Ltd.

A contractual clause fixing or limiting the quantum of recovery does not impair the statutory obligation of the warehouseman to exercise due care under s.14 of the Warehouse Receipts Act; therefore a limitation of liability expressed in a warehouse receipt is enforceable provided parties formed a contract and statutory conditions for declared valuations were not met, and negligent conduct that falls short of a fundamental breach does not invalidate the limitation.

Citation
[1980] 1 SCR 83
Parties
Plaintiff/appellant: Evans Products Co. Ltd.; Defendant/respondent: Crest Warehousing Co. Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
18 July 1979
Procedural Posture
Contract (bailment) Appeal to Supreme Court of Canada / Final Appeal From Court of Appeal for British Columbia; Judgment on Appeal
Outcome
Appeal dismissed (Estey J. dissenting); Court of Appeal judgment affirmed.
Legal Topics
Limitation of Liability, Statutory Duty of Care, Warehouse Receipts, Quantum of Damages, Fundamental Breach
Source Language
English
Contract Commercial Law Bailment Limitation of Liability Statutory Duty of Care Warehouse Receipts Quantum of Damages Fundamental Breach

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Parties

Evans Products Co. Ltd.

Plaintiff/appellant

Crest Warehousing Co. Ltd.

Defendant/respondent

Procedural Posture

Contract (bailment) Appeal to Supreme Court of Canada / Final Appeal From Court of Appeal for British Columbia; Judgment on Appeal

Legal Issues

  1. 1 Whether clause 11(f) formed part of the storage contract
  2. 2 Whether clause 11(f) contravened s.3(4)(b) of the Warehouse Receipts Act by impairing the statutory obligation to exercise care
  3. 3 Whether clause 11(f) contravened s.14 of the Warehouse Receipts Act and was therefore excluded by s.3(4)(a)

Ratio Decidendi

A contractual clause fixing or limiting the quantum of recovery does not impair the statutory obligation of the warehouseman to exercise due care under s.14 of the Warehouse Receipts Act; therefore a limitation of liability expressed in a warehouse receipt is enforceable provided parties formed a contract and statutory conditions for declared valuations were not met, and negligent conduct that falls short of a fundamental breach does not invalidate the limitation.

Court Disposition

Appeal dismissed (Estey J. dissenting); Court of Appeal judgment affirmed.

Orders

  • Appeal dismissed with costs
  • Damages reduced to $11,500 plus interest (as determined by Court of Appeal)