Background
In December 1985, two couples, Gillian and Keith Stewart and Stuart and Shelley Pettie, went to a dinner theatre in Edmonton. At dinner Stuart was served a number of rum-and-cokes but showed no signs of intoxication. Afterwards the four discussed who should drive and Stuart insisted he was fit to drive, and so they agreed to let him drive. On the way back Stuart got them in an accident. Among the injuries, Gillian was rendered quadriplegic.
At trial the judge found that the dinner theatre could not have been aware of Stuart's degree of intoxication and did not impose liability based solely on the number of drinks served. On appeal the Court of Appeal overturned the decision and allocated 10% liability to the theatre. The court held that the Mayfield investments (owners of the theatre) did not breach the duty that they owed to Gillian Stewart.
Opinion of the Court
Justice Major, writing for the unanimous court, held that the theatre was not liable. Major J. examined the previous cases of Crocker v. Sundance Northwest Resorts Ltd. and Jordan House Ltd. v. Menow , finding that they confirmed the existence of a duty to third parties who are reasonably expected to pose a risk.
A breach of the duty is only where there was a foreseeable risk of harm. Here, there was no reasonable way that the theatre could foresee that Stuart would be the one to drive since he was accompanied by three individuals, two of them sober. The theatre was correct in assuming that Stuart would not be the one to drive. Nevertheless, Major confirmed that the theatre must monitor the patron's alcohol consumption based on the amount served and not solely on the patron's visible condition.
In an obiter dictum, Major mused that even if there was a breach of the standard of care, it was not clear if a warning by Mayfield would have resulted in a different choice of driver.
Obiter dictum is the Latin phrase meaning "by the way", that is, a remark in a judgment that is "said in passing". It is a concept derived from English common law, whereby a judgment comprises only two elements: ratio decidendi and obiter dicta. For the purposes of judicial precedent, ratio decidendi is binding, whereas obiter dicta are persuasive only.
Negligence is a failure to exercise appropriate and or ethical ruled care expected to be exercised amongst specified circumstances. The area of tort law known as negligence involves harm caused by failing to act as a form of carelessness possibly with extenuating circumstances. The core concept of negligence is that people should exercise reasonable care in their actions, by taking account of the potential harm that they might foreseeably cause to other people or property.
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, asset managers, including managers of pension plans, endowments, and other tax-exempt assets, are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice, or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.
A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.
Volenti non fit iniuria is a common law doctrine which states that if someone willingly places themselves in a position where harm might result, knowing that some degree of harm might result, they are not able to bring a claim against the other party in tort or delict. Volenti applies only to the risk which a reasonable person would consider them as having assumed by their actions; thus a boxer consents to being hit, and to the injuries that might be expected from being hit, but does not consent to his opponent striking him with an iron bar, or punching him outside the usual terms of boxing. Volenti is also known as a "voluntary assumption of risk."
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.
Peoples Department Stores Inc v Wise, 2004 SCC 68 is a major Supreme Court of Canada decision on the scope of the fiduciary duty upon directors and officers of a corporation. When examining the duty of directors under section 122(1) of the Canada Business Corporations Act ("CBCA"), the Court held that there is a distinction between the interests of the corporation and those of the stakeholders and creditors.
Canadian Aero Service Ltd v O'Malley, [1974] SCR 592, is a leading civil case decided by the Supreme Court of Canada on corporate director and officer liability.
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.
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Nettleship v Weston [1971] 2 QB 691 is an English Court of Appeal judgment dealing with the breach of duty in negligence claims. In this case the court had considered the question of the standard of care that should be applied to a learner driver, and whether it should be the same as is expected of an experienced driver.
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Bazley v Curry, [1999] 2 SCR 534 is a Supreme Court of Canada decision on the topic of vicarious liability where the Court held that a non-profit organization may be held vicariously liable in tort law for sexual misconduct by one of its employees. The decision has widely influenced jurisprudence on vicarious liability outside of Canada.
Canada Steamship Lines Ltd v R [1952] UKPC 1 is a Canadian contract law case, also relevant for English contract law, concerning the interpretation of unfair terms contra proferentem. The case was decided by the Judicial Committee of the Privy Council on appeal from the Supreme Court of Canada, as the cause for appeal arose before the abolition of such appeals in 1949. Although arising in civil law under the Civil Code of Lower Canada, it has been influential in similar cases under English law.
Pilmer v Duke Group Ltd is an Australian company law case concerning the adequacy of consideration paid for shares, as well as on the questions of duty of care and fiduciary duty owed by experts retained in such matters.
In Canada, trade secrets are generally considered to include information set out, contained or embodied in, but not limited to, a formula, pattern, plan, compilation, computer program, method, technique, process, product, device or mechanism; it may be information of any sort; an idea of a scientific nature, or of a literary nature, as long as they grant an economical advantage to the business and improve its value. Additionally, there must be some element of secrecy. Matters of public knowledge or of general knowledge in an industry cannot be the subject-matter of a trade secret.
FHR European Ventures LLP v Cedar Capital Partners LLC [2014] UKSC 45 is a landmark decision of the United Kingdom Supreme Court which holds that a bribe or secret commission accepted by an agent is held on trust for his principal. In so ruling, the Court partially overruled Sinclair Investments (UK) Ltd v Versailles Trade Finance Ltd in favour of The Attorney General for Hong Kong v Reid (UKPC), a ruling from the Judicial Committee of the Privy Council on appeal from New Zealand.
