Federal Court - Christian Aboriginal Infrastructure Developments ...

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

22.01.2015 Views

Page: 316 find that on the facts of this case, the Plaintiffs are entitled to recover concurrently in either contract or tort. [1184] The Plaintiffs’ claim here, whether in contract or in tort, is one for pure economic loss. [1185] In Canadian National Railway Co. v. Norsk Pacific Steamship Co., [1992] 1 S.C.R. 1021, 2010 FC 495 (CanLII) the Supreme Court of Canada recognized the right to recover for pure economic loss in both of the torts which the Plaintiffs have made out. [1186] In V.K. Mason Construction v. Bank of Nova Scotia, [1985] 1 S.C.R. 271, Justice Wilson made the following observations at page 288 about damages in cases of negligent misrepresentation: (2) Although damages for negligent misrepresentation would normally be assessed in terms of actual loss, including lost opportunity, rather than loss of anticipated profit, in this case the commercial context in which the parties operated dictates that Mason’s loss should be calculated in the same way in tort as it would be in contract. Mason is accordingly entitled to damages in the sum of $1,138,151.63, being the entire balance outstanding under its contract with Courtot, plus interest on this amount at the rate of 9 per cent per annum from October 7, 1974 to March 21, 1980. [1187] Further, I find that this is an action arising in a commercial context. The Plaintiffs’ losses can be fairly and reasonably described as “expectation losses” and will be assessed accordingly.

Page: 317 [1188] It is not disputed that the Plaintiffs built the mill in Watson Lake as a business venture. The evidence was that the mill was expected to make a profit. There was also evidence that the Plaintiffs were prepared to shut down sawmilling operations if there was no prospect of the joint venture being a viable business. [1189] There is evidence that the Plaintiffs were aware of their options of making other 2010 FC 495 (CanLII) investments. For example, I refer to the letter of Mr. Heit to Ms. Guscott, dated March 19, 1999; see Exhibit D-13. In his letter, Mr. Heit advised the Department that unless there was a reasonable level of optimism, with respect to the availability of timber, he would recommend that the mill close, and the operation move to a more business friendly jurisdiction. [1190] I find, from Mr. Heit’s March 19 th letter and all of the surrounding circumstances, that the Plaintiffs were prepared to shut down the Watson Lake sawmill operation and invest in building a business in a different jurisdiction. [1191] I have already found that the Plaintiffs have succeeded in their causes of action for breach of contract, negligence and negligent misrepresentation. I also find that they have met their burden with respect to evidence, on the balance of probabilities, concerning their losses. [1192] The Defendant addressed the issue of damages in her closing submissions. She argued that the damages claimed by the Plaintiff were speculative and consequently, could not be recovered. In

Page: 317<br />

[1188] It is not disputed that the Plaintiffs built the mill in Watson Lake as a business venture. The<br />

evidence was that the mill was expected to make a profit. There was also evidence that the Plaintiffs<br />

were prepared to shut down sawmilling operations if there was no prospect of the joint venture<br />

being a viable business.<br />

[1189] There is evidence that the Plaintiffs were aware of their options of making other<br />

2010 FC 495 (CanLII)<br />

investments. For example, I refer to the letter of Mr. Heit to Ms. Guscott, dated March 19, 1999; see<br />

Exhibit D-13. In his letter, Mr. Heit advised the Department that unless there was a reasonable level<br />

of optimism, with respect to the availability of timber, he would recommend that the mill close, and<br />

the operation move to a more business friendly jurisdiction.<br />

[1190] I find, from Mr. Heit’s March 19 th letter and all of the surrounding circumstances, that the<br />

Plaintiffs were prepared to shut down the Watson Lake sawmill operation and invest in building a<br />

business in a different jurisdiction.<br />

[1191] I have already found that the Plaintiffs have succeeded in their causes of action for breach of<br />

contract, negligence and negligent misrepresentation. I also find that they have met their burden<br />

with respect to evidence, on the balance of probabilities, concerning their losses.<br />

[1192] The Defendant addressed the issue of damages in her closing submissions. She argued that<br />

the damages claimed by the Plaintiff were speculative and consequently, could not be recovered. In

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!