Ross v. Barry
- Citation
- (1891) 19 SCR 360
- Status
- Judgment
- Jurisdiction
- Canada
- Court
- Supreme Court of Canada
- Decision
- 22 June 1891
- Posture
- Contract / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
- Language
- English
More details
- Court
- Supreme Court of Canada
- Decision
- 22 June 1891
- Posture
- Contract / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Court found that the conversation between McRae and Smeaton reasonably induced the subcontractors to expect a higher standard matching the Loop Line, that they relied on that representation and were promised payment for increased costs, and therefore the claim for extra payment was bona fide and recoverable.
Court disposition
Appeal dismissed with costs; judgment for plaintiffs affirmed
Orders
- Appeal dismissed with costs
- Judgment in favour of plaintiffs for the increased price affirmed
02
Material facts
Parties
Barry
Plaintiff/respondent Counsel: Osler Q.C.Smeaton
Plaintiff/respondent Counsel: Osler Q.C.Ross
Defendant/appellant Counsel: Bain Q.C.; Laidlaw Q.C.McRae
Defendant/appellant Counsel: Bain Q.C.; Laidlaw Q.C.Amounts and remedies
- Cost Increase Lower Percent: % 25
- Cost Increase Upper Percent: % 30
03
Procedural history
Posture
Contract / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
04
Questions and positions
Legal issues
- 01
Whether an oral representation by the contractor induced the subcontractor to perform higher‑standard work and created an obligation to pay an increased price
- 02
Whether subsequent instruction to follow plans and specifications negated the earlier representation
- 03
Whether the plaintiffs' claim for extra payment was bona fide
Party arguments
- Applicant
- Appellants submitted there was no binding agreement to pay extra; plaintiffs were instructed to proceed according to the company plans and specifications and any unilateral belief about a higher standard was mistaken and insufficient to create liability.
- Respondent
- Respondents submitted that a prior conversation induced a reasonable expectation that the second class masonry should match the Loop Line standard; they relied on that representation, were induced to redo work at greater cost after the engineer's instruction, and were promised payment for the increased cost.
05
Court’s reasoning
Legal principles
- 01
Ross v. Barry, (1891) 19 S.C.R. 360
Oral representations that induce performance can create enforceable obligations where reliance is proven.
- 02
Ross v. Barry, (1891) 19 S.C.R. 360
Subsequent written direction to follow specifications does not automatically erase earlier binding representations where parties have relied on those representations.
06
Ratio, limits and disposition
Ratio decidendi
The Court found that the conversation between McRae and Smeaton reasonably induced the subcontractors to expect a higher standard matching the Loop Line, that they relied on that representation and were promised payment for increased costs, and therefore the claim for extra payment was bona fide and recoverable.
Obiter and limits
- Pulling down and redoing work under the engineer's direction evidences clear reliance on the promise to pay.
- A 25–30% increase in cost arising from a higher specified standard can justify recovery where induced by the contractor's representation.
Court disposition
Appeal dismissed with costs; judgment for plaintiffs affirmed
- Appeal dismissed with costs
- Judgment in favour of plaintiffs for the increased price affirmed
Source and reliance status
Supreme Court of Canada · 22 June 1891
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Judgment reading view
Judgment text
The complete available source text.
Supreme Court of Canada
Judgment· 22 June 1891
Ross v. Barry Collection Supreme Court Judgments Date 1891-06-22 Report (1891) 19 SCR 360 On appeal from Ontario Subjects Contract Decision Content Supreme Court of Canada Ross v. Barry, 19 S.C.R. 360 Date: 1891-06-22 Ross and Barry 1891: January 28, 29; 1891: June 22. Contract—Evidence—Quality of work—Conversation between parties—Claim for increased price. APPEAL from a decision of the Court of Appeal for Ontario affirming the judgment in favor of the plaintiffs (respondents). The plaintiffs, Barry & Smeaton, were sub-contractors for the mason work on a portion of the line of the Grand Trunk Railway Co. for constructing which Ross & McRae, the defendants, had the contract. In a conversation between the plaintiff, Smeaton, and the defendant, McRae, before the work was begun Smeaton was given to understand that the standard of the second class masonry to be built by plaintiffs was to be equal to that on the “Loop Line” another part of the Grand Trunk system, and shortly after McRae wrote to plaintiff instructing them to go on with the work “according to the plans and specifications furnished by the company.” The plaintiffs had completed a portion of their work when they were informed by the engineer in charge that the quality of second class masonry was to be of a higher standard than they had supposed, which would increase the cost of construction from twenty-five to thirty per
cent, whereupon they refused to pro- ceed until Smeaton, who was present at the time, told them to go on and finish it as directed by the engineer and they would be paid. They then pulled down what they had built and proceeded as directed. When the work was nearly done Smeaton tried to back out of his agreement to pay the increased price, but renewed it on plaintiffs again threatening to stop the work. He refused to pay it, however, when the work was completed and an action was brought to recover it, in which the plaintiff obtained a verdict which was affirmed by the Divisional Court and the Court of Appeal. The Supreme Court held that on the evidence plaintiffs were justified in assuming, from the conversation between McRae & Smeaton, that the standard of quality for the second class masonry was to be that of the Loop Line; that their claim against the defendants was a bonâ fide one and the decision in their favor should be affirmed. Appeal dismissed with costs. Bain Q.C. and Laidlaw Q.C. for the appellants. Osler Q.C. for the respondents.
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