Direct Lumber Co. v. Western Plywood Co.

Direct Lumber Co. v. Western Plywood Co.

Criminal Code ss.411(1)(c) and 412(1)(a) and (2) do not create a private civil cause of action for damages; therefore plaintiff's claim based on those provisions fails. The vendor's counterclaim for the contract price of goods sold and delivered is enforceable because the alleged illegality in separate transactions is not connected to that contract. The commission claim fails for lack of contractual proof and is barred by the Statute of Frauds as found by the courts.

Citation
[1962] SCR 646
Parties
Plaintiff Appellant: Direct Lumber Company Limited; Defendant Respondent: Western Plywood Company Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
25 June 1962
Procedural Posture
Civil Appeal / On Appeal to the Supreme Court of Canada From the Alberta Appellate Division
Outcome
appeal dismissed
Legal Topics
Price Discrimination, Conspiracy, Statutory Interpretation, Cause of Action, Counterclaim, Illegality Defence, Commission Dispute, Statute of Frauds
Source Language
English
Criminal Law Competition Law Trade Regulation Contract Law Price Discrimination Conspiracy Statutory Interpretation Cause of Action +4 more

Case Brief

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Parties

Direct Lumber Company Limited

Plaintiff Appellant

Western Plywood Company Limited

Defendant Respondent

Procedural Posture

Civil Appeal / On Appeal to the Supreme Court of Canada From the Alberta Appellate Division

Legal Issues

  1. 1 Whether Criminal Code ss.411(1)(c) and 412(1)(a) and (2) create a private civil cause of action for damages
  2. 2 Whether a purchaser can defeat a vendor's claim for price by alleging the vendor committed unlawful price discrimination to others
  3. 3 Whether an oral agreement to pay commission on third‑party sales was enforceable or barred by the Statute of Frauds

Ratio Decidendi

Criminal Code ss.411(1)(c) and 412(1)(a) and (2) do not create a private civil cause of action for damages; therefore plaintiff's claim based on those provisions fails. The vendor's counterclaim for the contract price of goods sold and delivered is enforceable because the alleged illegality in separate transactions is not connected to that contract. The commission claim fails for lack of contractual proof and is barred by the Statute of Frauds as found by the courts.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed with costs
  • Judgment of the Supreme Court of Alberta, Appellate Division affirmed