Old Growth Timber Inc. v. RCS Construction Inc.

Old Growth Timber Inc. v. RCS Construction Inc.

The seller did not breach implied conditions under the Sale of Goods Act because the goods corresponded with the description, the buyer had opportunity to examine and accept the goods (and did not test for moisture), and the mould more likely resulted from the moist worksite environment and buyer's failure to handle/finish the kiln-dried spalted wood; therefore the seller is entitled to the unpaid purchase price, costs and limited prejudgment interest, and the defendant's counterclaim is dismissed.

Citation
2016 NSSM 14
Parties
Claimant: Old Growth Timber Incorporated; Defendant: RCS Construction Incorporated
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
27 April 2016
Procedural Posture
Small Claims Court Sale of Goods / Contract / Decision on Merits (final Judgment)
Outcome
Judgment for Claimant; counterclaim dismissed.
Legal Topics
Implied Terms, Merchantable Quality, Fitness for Particular Purpose, Acceptance of Goods, Allocation of Risk, Prejudgment Interest
Source Language
English
Contract Sale of Goods Commercial Law Remedies Implied Terms Merchantable Quality Fitness for Particular Purpose Acceptance of Goods +2 more

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Parties

Old Growth Timber Incorporated

Claimant

RCS Construction Incorporated

Defendant

Procedural Posture

Small Claims Court Sale of Goods / Contract / Decision on Merits (final Judgment)

Legal Issues

  1. 1 Whether the seller breached implied conditions or warranties under the Sale of Goods Act
  2. 2 Whether the buyer accepted the goods and thereby waived complaints about moisture/content
  3. 3 Whether the mould resulted from defective goods or from improper handling/storage/environment at the worksite

Ratio Decidendi

The seller did not breach implied conditions under the Sale of Goods Act because the goods corresponded with the description, the buyer had opportunity to examine and accept the goods (and did not test for moisture), and the mould more likely resulted from the moist worksite environment and buyer's failure to handle/finish the kiln-dried spalted wood; therefore the seller is entitled to the unpaid purchase price, costs and limited prejudgment interest, and the defendant's counterclaim is dismissed.

Court Disposition

Judgment for Claimant; counterclaim dismissed.

Orders

  • Pay debt $19,787.00 CAD to Claimant
  • Prejudgment interest of $1,582.96 CAD awarded to Claimant (two years at applicable rate)