Mission Sawmills Ltd. v. Gill Brothers

Mission Sawmills Ltd. v. Gill Brothers

The Court held that a binding contract existed (April 1942), it was for an undetermined time and therefore terminable only on reasonable notice; the six days' notice given June 24, 1943 was unreasonable, six months' notice would have been reasonable, the contract was wrongfully determined on June 30, 1943, and damages for the period to December 24, 1943 were to be assessed accordingly.

Citation
[1945] SCR 766
Parties
Appellant/defendant: Mission Sawmills Limited; Respondents/plaintiffs: Gill Brothers
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
4 October 1945
Procedural Posture
Contract Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia
Outcome
Appeal dismissed with costs
Legal Topics
Termination of Contract, Reasonable Notice, Duration of Contract, Wrongful Termination, Measure of Damages
Source Language
English
Contract Damages Termination of Contract Reasonable Notice Duration of Contract Wrongful Termination Measure of Damages

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Parties

Mission Sawmills Limited

Appellant/defendant

Gill Brothers

Respondents/plaintiffs

Procedural Posture

Contract Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for British Columbia

Legal Issues

  1. 1 Whether a binding contract existed between the parties.
  2. 2 Whether the contract was for an undetermined time and terminable only on reasonable notice.
  3. 3 Whether the six days' notice given was reasonable.

Ratio Decidendi

The Court held that a binding contract existed (April 1942), it was for an undetermined time and therefore terminable only on reasonable notice; the six days' notice given June 24, 1943 was unreasonable, six months' notice would have been reasonable, the contract was wrongfully determined on June 30, 1943, and damages for the period to December 24, 1943 were to be assessed accordingly.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Refer matter to District Registrar at Vancouver to inquire and certify damages sustained by respondents from June 30, 1943 to December 24, 1943