Otter Farm & Home Co-Operative v. Pritam Kaur Sekon

Otter Farm & Home Co-Operative v. Pritam Kaur Sekon

The court held the written contracts are binding and the 15,000,000 litre throughput figure was not shown to have been mistakenly inserted; credit is therefore $0.0067 per litre commencing July 1, 1997, reducing the loan balance to $34,364.64, with interest at 9% from May 31, 1999; there was no binding collateral contract obliging Otter Co-op to provide pump support; Otter Co-op was estopped from withholding deliveries on the payment demand and breached the supply contract by refusing deliveries after May 8, 1999, entitling Mrs. Sekhon to damages for May 9–31, 1999 to be quantified.

Citation
2003 BCSC 32
Parties
Plaintiff (docket S009418); Defendant (docket S048178): Otter Farm & Home Co-Operative; Defendant (docket S009418); Plaintiff (docket S048178): Pritam Kaur Sekon
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
8 January 2003
Procedural Posture
Commercial Contract Dispute Petroleum Supply and Equipment Loan / Trial Judgment (reasons for Judgment)
Outcome
Judgment for Otter Co-op on loan balance; partial judgment for Mrs. Sekhon on breach of supply with damages to be assessed; remainder of claims dismissed; costs to Otter Co-op.
Legal Topics
Rectification, Promissory Estoppel, Breach of Contract, Termination, Damages, Interest
Source Language
English
Contract Law Commercial Law Equity Commercial Litigation Rectification Promissory Estoppel Breach of Contract Termination +2 more

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Parties

Otter Farm & Home Co-Operative

Plaintiff (docket S009418); Defendant (docket S048178)

Pritam Kaur Sekon

Defendant (docket S009418); Plaintiff (docket S048178)

Procedural Posture

Commercial Contract Dispute Petroleum Supply and Equipment Loan / Trial Judgment (reasons for Judgment)

Legal Issues

  1. 1 Amount owing under equipment loan (per-litre credit, commencement date, interest)
  2. 2 Rectification claim regarding throughput figure (15,000,000 vs 12,500,000 litres)
  3. 3 Existence and terms of alleged collateral contract to provide pump support

Ratio Decidendi

The court held the written contracts are binding and the 15,000,000 litre throughput figure was not shown to have been mistakenly inserted; credit is therefore $0.0067 per litre commencing July 1, 1997, reducing the loan balance to $34,364.64, with interest at 9% from May 31, 1999; there was no binding collateral contract obliging Otter Co-op to provide pump support; Otter Co-op was estopped from withholding deliveries on the payment demand and breached the supply contract by refusing deliveries after May 8, 1999, entitling Mrs. Sekhon to damages for May 9–31, 1999 to be quantified.

Court Disposition

Judgment for Otter Co-op on loan balance; partial judgment for Mrs. Sekhon on breach of supply with damages to be assessed; remainder of claims dismissed; costs to Otter Co-op.

Orders

  • Judgment for Otter Co-op for $34,364.64 plus interest at 9% per annum from May 31, 1999.
  • Judgment for Mrs. Sekhon for damages for Otter Co-op's breach of supply from May 9 to May 31, 1999 in an amount to be agreed or, failing agreement, ascertained by the registrar (difference between what she paid and what she would have paid under the Tempo contract).