S. Morgan Smith Co. v. Sissiboo Pulp and Paper Co.

S. Morgan Smith Co. v. Sissiboo Pulp and Paper Co.

Because all consideration payable to the contractor had been paid before the machinery was delivered, no lien could attach that would make the owner liable under s.6; section 8 did not apply because there was no contract price separable from other blended considerations, therefore the appellants had no enforceable lien against the company.

Citation
(1904) 35 SCR 93
Parties
Appellant; Plaintiff: S. Morgan Smith Company; Respondent; Defendant: Sissiboo Pulp and Paper Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
8 June 1904
Procedural Posture
Civil Appeal (mechanics' Lien) / Supreme Court of Canada Judgment on Appeal From Supreme Court of Nova Scotia
Outcome
Appeal dismissed with costs
Legal Topics
Mechanics' Lien, Statutory Interpretation, Contract Price, Delivery of Materials, Owners Liability
Source Language
English
Property Construction Contract Corporate Mechanics' Lien Statutory Interpretation Contract Price Delivery of Materials +1 more

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Parties

S. Morgan Smith Company

Appellant; Plaintiff

Sissiboo Pulp and Paper Company

Respondent; Defendant

Procedural Posture

Civil Appeal (mechanics' Lien) / Supreme Court of Canada Judgment on Appeal From Supreme Court of Nova Scotia

Legal Issues

  1. 1 Whether a mechanics' lien can attach to machinery supplied to a contractor when the owner had been fully paid before delivery
  2. 2 Whether section 8 (retention of 15% of contract price) of the Mechanics' Lien Act applies where no separable contract price is specified
  3. 3 Construction of s.6 limiting owner liability to sum payable to contractor

Ratio Decidendi

Because all consideration payable to the contractor had been paid before the machinery was delivered, no lien could attach that would make the owner liable under s.6; section 8 did not apply because there was no contract price separable from other blended considerations, therefore the appellants had no enforceable lien against the company.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs