Corbin v. Thompson, Horne and Musgrave

Corbin v. Thompson, Horne and Musgrave

Allow direct, reasonable expenses incurred in immediate reliance on the contract and sellers' representations (here wages, board and incidental expenses) as recoverable damages; disallow speculative secondary anticipated profits (loss of use) as too remote and uncertain unless they are primary profits or special circumstances made them within the parties' contemplation.

Citation
(1907) 39 SCR 575
Parties
Defendant/appellant: John C. Corbin; Plaintiff/respondent: Evan Thompson; Plaintiff/respondent: Andrew P. Horne; Plaintiff/respondent: Charlotte G. Musgrave
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 December 1907
Procedural Posture
Contract / Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia
Outcome
Judgment of the Supreme Court of Nova Scotia reversed in part; trial judgment restored to the extent of $277.11.
Legal Topics
Measure of Damages, Notice of Special Circumstances, Collateral Enterprises, Loss of Primary and Secondary Profits, Mitigation, Costs
Source Language
English
Contract Measure of Damages Notice of Special Circumstances Collateral Enterprises Loss of Primary and Secondary Profits Mitigation Costs

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Parties

John C. Corbin

Defendant/appellant

Evan Thompson

Plaintiff/respondent

Andrew P. Horne

Plaintiff/respondent

Charlotte G. Musgrave

Plaintiff/respondent

Procedural Posture

Contract / Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia

Legal Issues

  1. 1 What measure of damages is recoverable for breach of a warranty in sale of machinery
  2. 2 Whether wages, board and incidental expenses incurred while awaiting repair are recoverable as direct damages
  3. 3 Whether anticipated profits (loss of use) claimed are primary (recoverable) or secondary/remote (not recoverable)

Ratio Decidendi

Allow direct, reasonable expenses incurred in immediate reliance on the contract and sellers' representations (here wages, board and incidental expenses) as recoverable damages; disallow speculative secondary anticipated profits (loss of use) as too remote and uncertain unless they are primary profits or special circumstances made them within the parties' contemplation.

Court Disposition

Judgment of the Supreme Court of Nova Scotia reversed in part; trial judgment restored to the extent of $277.11.

Orders

  • Judgment entered in favour of defendant on his counterclaim for $277.11
  • Item of $150 for loss of anticipated profits disallowed as too remote and uncertain