Federal Court - Christian Aboriginal Infrastructure Developments ...

Federal Court - Christian Aboriginal Infrastructure Developments ... Federal Court - Christian Aboriginal Infrastructure Developments ...

22.01.2015 Views

Page: 280 [1063] In Athey at para. 14, the Court held that “[t]he general, but not conclusive, test for causation is the "but for" test, which requires the plaintiff to show that the injury would not have occurred but for the negligence of the defendant…” [1064] While it is necessary to apply the “but for” test on the balance of probabilities, it is not necessary to prove that the Defendant was the only cause of the harm; see Athey, at paras. 17-19. 2010 FC 495 (CanLII) [1065] The harm suffered by the LPL was the expectation losses resulting from the closure of the mill. On the balance of probabilities and having regard to the totality of the evidence, I find that if the Defendant had informed LPL that they had specific concerns with the inventory contained within the Final Sterling Wood Report, the joint venture would not have proceeded. [1066] I find on the balance of probabilities that “but for” the Defendant’s negligent misrepresentation, the Plaintiffs would not have built the mill, the mill would not have closed and the Plaintiffs would not have suffered the expectation losses. (iii) Contributory Negligence [1067] The Defendant relies upon the Contributory Negligence Act, to argue that the liability for damage to the Plaintiffs should be apportioned between the Defendant and the Plaintiffs.

Page: 281 [1068] As I understand the Defendant’s argument, she relies upon A.O. Farms to argue that LPL should not have relied upon the representations of the Government. In A.O. Farms, Mr. Justice Hugessen stated at para. 9, that: Without wishing to sound unduly cynical, I would say that very few people today would consider that it was reasonable to rely on promises made by politicians especially in a pre-election period. [1069] It is unclear to me if the Defendant extends this argument to the Department’s employees or 2010 FC 495 (CanLII) only the Minister. Regardless, in Avco Financial Services Realty Ltd. v. Norman (2003), 64 O.R. (3d) 239 (C.A.), leave to appeal refused (2003), 68 O.R. (3d) xvii, the Court said at para. 27: …Indeed, if the allegation of contributory negligence is based on the contention that the injured party acted unreasonably in relying on the misstatement, the question will already have been determined on the main claim, and the plea of contributory negligence will not succeed. … [1070] I have already determined that LPL reasonably relied on the representation of the Defendant and that it was reasonably foreseeable that it would do so. This argument is without merit. [1071] Insofar as the Defendant spent considerable energy discussing the fitness of the mill, I will repeat that this was not a defence that was pled. Nevertheless, I have found above that on the basis of the evidence, the mill was adequately designed and constructed. [1072] Finally, with respect to reasonableness of re-opening the mill, I have previously found that this action was reasonable. The Defendant took great efforts to encourage the Plaintiffs to remain in

Page: 280<br />

[1063] In Athey at para. 14, the <strong>Court</strong> held that “[t]he general, but not conclusive, test for causation<br />

is the "but for" test, which requires the plaintiff to show that the injury would not have occurred but<br />

for the negligence of the defendant…”<br />

[1064] While it is necessary to apply the “but for” test on the balance of probabilities, it is not<br />

necessary to prove that the Defendant was the only cause of the harm; see Athey, at paras. 17-19.<br />

2010 FC 495 (CanLII)<br />

[1065] The harm suffered by the LPL was the expectation losses resulting from the closure of the<br />

mill. On the balance of probabilities and having regard to the totality of the evidence, I find that if<br />

the Defendant had informed LPL that they had specific concerns with the inventory contained<br />

within the Final Sterling Wood Report, the joint venture would not have proceeded.<br />

[1066] I find on the balance of probabilities that “but for” the Defendant’s negligent<br />

misrepresentation, the Plaintiffs would not have built the mill, the mill would not have closed and<br />

the Plaintiffs would not have suffered the expectation losses.<br />

(iii)<br />

Contributory Negligence<br />

[1067] The Defendant relies upon the Contributory Negligence Act, to argue that the liability for<br />

damage to the Plaintiffs should be apportioned between the Defendant and the Plaintiffs.

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