BG Checo International Ltd v British Columbia Hydro and Power Authority | |
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Hearing: January 28, 1992 Judgment: January 21, 1993 | |
Citations | [1993] 1 SCR 12 |
Docket No. | 21939 |
Prior history | Partial judgment in both parties' favour in the British Columbia Court of Appeal. |
Ruling | BC Hydro's appeal dismissed; Checo's cross-appeal allowed in part. |
Holding | |
Parties whose relationship is governed by a contract are allowed to sue each other in tort, provided there was no express intention by the parties to limit such actions. | |
Court membership | |
Chief Justice: Antonio Lamer Puisne Justices: Gérard La Forest, Claire L'Heureux-Dubé, John Sopinka, Charles Gonthier, Peter Cory, Beverley McLachlin, William Stevenson, Frank Iacobucci | |
Reasons given | |
Majority | La Forest and McLachlin JJ, joined by L'Heureux‑Dubé and Gonthier JJ |
Concur/dissent | Iacobucci J, joined by Sopinka J |
Lamer CJ, and Cory and Stevenson JJ took no part in the consideration or decision of the case. |
BG Checo International Ltd v British Columbia Hydro and Power Authority, [1993] 1 SCR 12 is a leading decision by the Supreme Court of Canada. The Court held that there is a prima facie presumption that a claimant is able to sue concurrently in tort and contract where sufficient grounds exist. Still, liability in tort will still be subject to an exemptions or conditions set out in a contract.
British Columbia Hydro and Power Authority called for tenders to erect power lines. BG Checo International Ltd. was interested in making a tender and so did a survey of the land by helicopter. On viewing the area they noted that the area was in the process of being clear-cut. BG Checo issued a tender and won. The tender was incorporated into the contract and included terms stating that BG Checo would have no part in clearing a right-of-way to the land. Once the agreement was made no further clearing was done which resulted significant difficulties for BG Checo.
BG Checo sued in tort of negligent misrepresentation and in the alternative breach of contract. The key issue is the case was whether the terms of the contract precluded BG Checo from suing in tort.
La Forest and McLachlin wrote for the majority. Citing Central Trust Co v Rafuse , [1] the Court stated that "where a given wrong prima facie supports an action in contract and in tort, the party may sue in either or both, except where the contract indicates that the parties intended to limit or negative the right to sue in tort".
The Court considered three situations where a party can sue in tort and contract.
The Court found that the current situation fell into the third category and so BG Checo was able to sue in both tort and contract.
At common law, damages are a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury. To warrant the award, the claimant must show that a breach of duty has caused foreseeable loss. To be recognised at law, the loss must involve damage to property, or mental or physical injury; pure economic loss is rarely recognised for the award of damages.
Prima facie is a Latin expression meaning on its first encounter or at first sight. The literal translation would be "at first face" or "at first appearance", from the feminine forms of primus ("first") and facies ("face"), both in the ablative case. In modern, colloquial and conversational English, a common translation would be "on the face of it". The term prima facie is used in modern legal English to signify that upon initial examination, sufficient corroborating evidence appears to exist to support a case. In common law jurisdictions, prima facie denotes evidence that, unless rebutted, would be sufficient to prove a particular proposition or fact. The term is used similarly in academic philosophy. Most legal proceedings, in most jurisdictions, require a prima facie case to exist, following which proceedings may then commence to test it, and create a ruling.
Res ipsa loquitur is a doctrine in the Anglo-American common law that says in a tort lawsuit a court can infer negligence from the very nature of an accident or injury in the absence of direct evidence on how any defendant behaved. Although modern formulations differ by jurisdiction, common law originally stated that the accident must satisfy the necessary elements of negligence: duty, breach of duty, causation, and injury. In res ipsa loquitur, the elements of duty of care, breach, and causation are inferred from an injury that does not ordinarily occur without negligence.
A tort, in common law jurisdiction, is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. It can include intentional infliction of emotional distress, negligence, financial losses, injuries, invasion of privacy, and many other things.
An intentional tort is a category of torts that describes a civil wrong resulting from an intentional act on the part of the tortfeasor. The term negligence, on the other hand, pertains to a tort that simply results from the failure of the tortfeasor to take sufficient care in fulfilling a duty owed, while strict liability torts refers to situations where a party is liable for injuries no matter what precautions were taken.
Canadian constitutional law is the area of Canadian law relating to the interpretation and application of the Constitution of Canada by the courts. All laws of Canada, both provincial and federal, must conform to the Constitution and any laws inconsistent with the Constitution have no force or effect.
Ex turpi causa non oritur actio is a legal doctrine which states that a plaintiff will be unable to pursue legal remedy if it arises in connection with his own illegal act. Particularly relevant in the law of contract, tort and trusts, ex turpi causa is also known as the illegality defence, since a defendant may plead that even though, for instance, he broke a contract, conducted himself negligently or broke an equitable duty, nevertheless a claimant by reason of his own illegality cannot sue. The UK Supreme Court provided a thorough reconsideration of the doctrine in 2016 in Patel v Mirza.
Long-arm jurisdiction is the ability of local courts to exercise jurisdiction over foreign defendants, whether on a statutory basis or through a court's inherent jurisdiction. This jurisdiction permits a court to hear a case against a defendant and enter a binding judgment against a defendant residing outside the jurisdiction concerned.
Norberg v Wynrib, [1992] 2 SCR 226 is a leading Supreme Court of Canada decision on the fiduciary duty between doctors and patients, and on the limits of consent as a defence in sexual assault.
R v Ron Engineering and Construction (Eastern) Ltd, of 1981 is the leading Supreme Court of Canada decision on the law of tendering for contracts. The case concerned the issue of whether the acceptance of a call for tenders for a construction job could constitute a binding contract. The Court held that indeed in many cases the submission of an offer in response to a call for tenders constitutes a contract separate from the eventual contract for the construction. With the release of the decision, the tendering process practiced in Canada was fundamentally changed.
Central Trust Co v Rafuse, [1986] 2 SCR 147 is a leading decision of the Supreme Court of Canada on liability of solicitors in negligence and breach of contract as well as the doctrine of discoverability under the Statute of Limitations.
Kamloops v Nielsen, [1984] 2 SCR 2 ("Kamloops") is a leading Supreme Court of Canada (SCC) decision setting forth the criteria which must be met in order for a plaintiff to make a claim in tort for pure economic loss. In this regard, the Kamloops case is significant because the SCC adopted the "proximity" test set out in the House of Lords decision, Anns v Merton LBC. Kamloops is also significant as it articulates the "discoverability principle" in which the commencement of a limitation period is delayed until the plaintiff becomes aware of the material facts on which a cause of action are discovered or ought to have been discovered by the plaintiff in the exercise of reasonable diligence. This was later adopted and refined in Central Trust Co v Rafuse. Finally, Kamloops develops the law governing circumstances where a plaintiff can sue the government in tort.
Insurance bad faith is a legal term of art unique to the law of the United States that describes a tort claim that an insured person may have against an insurance company for its bad acts. Under United States law, insurance companies owe a duty of good faith and fair dealing to the persons they insure. This duty is often referred to as the "implied covenant of good faith and fair dealing" which automatically exists by operation of law in every insurance contract.
Canadian administrative law is the body of law that addresses the actions and operations of governments and governmental agencies in Canada. That is, the law concerns the manner in which courts can review the decisions of administrative decision-makers (ADMs) such as a board, tribunal, commission, agency or Crown minister, when he or she exercises ministerial discretion.
London Drugs Ltd v Kuehne & Nagel International Ltd, [1992] 3 SCR 299 is a leading decision of the Supreme Court of Canada on privity of contract.
Racial discrimination in jury selection has a long history in the United States. It is specifically prohibited by law, which has been defined through a series of judicial decisions. However, juries composed solely of one racial group are legal in the United States. While the racial composition of juries is not dictated by law, racial discrimination in the selection of jurors is specifically prohibited. Depending on context, the phrases "all-white jury" or "all-black jury" can raise a host of expectations – among them, as MIT social neuroscientist Rebecca Saxe notes, the expectation that deliberations may be less than fair.
Canadian National Railway Co v Norsk Pacific Steamship Co, [1992] 1 SCR 1021 is a leading Supreme Court of Canada decision on pure economic loss in tort law. The court recognized situations in which pure economic loss is compensable. In particular, the court held that relational economic loss falls within the category of losses that are sufficiently proximate to give rise to a duty of care.
Hall v Hebert is a leading tort law case decided by the Supreme Court of Canada on the defences of contributory negligence and ex turpi causa non oritur actio.
Section 125 of the Constitution Act, 1867 provides that:
125. No Lands or Property belonging to Canada or any Province shall be liable to Taxation.
Penalties in English law are contractual terms which are not enforceable in the courts because of their penal character. Since at least 1720 it has been accepted as a matter of English contract law that if a provision in a contract constitutes a penalty, then that provision is unenforceable by the parties. However, the test for what constitutes a penalty has evolved over time. The Supreme Court most recently restated the law in relation to contractual penalties in the co-joined appeals of Cavendish Square Holding BV v Talal El Makdessi, and ParkingEye Ltd v Beavis.