Barrette v. Succession Crabtree, (1993) 150 N.R. 272 (SCC)
Judge | Sopinka, Gonthier and Iacobucci, JJ. |
Court | Supreme Court (Canada) |
Case Date | March 25, 1993 |
Jurisdiction | Canada (Federal) |
Citations | (1993), 150 N.R. 272 (SCC);10 BLR (2d) 1;150 NR 272;AZ-93111027;1993 CanLII 127 (SCC);101 DLR (4th) 66;[1993] 1 SCR 1027;47 CCEL 1 |
Barrette v. Crabtree Estate (1993), 150 N.R. 272 (SCC)
MLB headnote and full text
[French language version follows English language version]
[La version française vient à la suite de la version anglaise]
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Gaston Barrette et autres (appellants) c. Les héritiers de feu H. Roy Crabtree et Harold R. Crabtree (respondents)
(22505)
Indexed As: Barrette v. Succession Crabtree
Supreme Court of Canada
Lamer, C.J.C., and L'Heureux-Dubé,
Sopinka, Gonthier and Iacobucci, JJ.
March 25, 1993.
Summary:
Barrette and others were laid off when their employer, Wabasso Ltd., closed the plant where they worked. They sued Wabasso for compensation in lieu of notice of dismissal. The Court of Quebec awarded them a total of $300,358.66. Wabasso, insolvent, did not appeal. The plaintiffs then sued under s. 114(1) of the Canada Business Corporations Act for a judgment against Wabasso's directors personally. The Court of Quebec, in a judgment summarized at J.E. 89-1311; D.T.E. 89T-943, allowed the action. The directors appealed.
The Quebec Court of Appeal, in a judgment reported [1991] R.J.Q. 1193, allowed the appeal. The plaintiffs appealed.
The Supreme Court of Canada dismissed the appeal.
Company Law - Topic 4186
Directors - Liability of directors - For employees' wages or debts for services performed for corporation - Barrette and others were laid off when their employer, Wabasso Ltd., closed the plant where they worked - They sued Wabasso for compensation in lieu of notice of dismissal - The Court of Quebec awarded them a total of $300,358.66 - Wabasso, insolvent, did not appeal - The plaintiffs then sued under s. 114(1) of the Canada Business Corporations Act for a judgment against Wabasso's directors personally - The Supreme Court of Canada held that the plaintiffs could not succeed here because the amount they claimed as compensation in lieu of notice did not flow from services performed for the corporation, but from the damage arising from nonperformance of a contractual obligation to give sufficient notice.
Droit des compagnies - Cote 4186
Administrateurs - Responsabilité des administrateurs - Salaires des employés ou dettes pour services exécutés au profit de la compagnie - [Voir Company Law - Topic 4186 ].
Cases Noticed:
Schwartz v. Scott, [1985] C.A. 713, dist. [para. 8].
Turcot v. Conso Graber Inc., [1990] R.D.J. 166 (Que. C.A.), refd to. [para. 9].
Mesheau v. Campbell (1982), 141 D.L.R. (3d) 155; 53 O.R.(2d) 468 (C.A.), refd to. [para. 9].
Hills v. Canada (Attorney General), [1988] 1 S.C.R. 513; 84 N.R. 86, refd to. [para. 15].
Fee v. Turner (1904), 13 B.R. 435, consd. [para. 27].
Asbestos Corp. v. Cook, [1933] S.C.R. 86, refd to. [para. 37].
Domtar Inc. v. St-Germain, [1991] R.J.Q. 1271 (C.A.), consd. [para. 37].
Columbia Builders Supplies Co. v. Bartlett, [1967] B.R. 111, refd to. [para. 38].
Mills-Hughes v. Raynor (1988), 25 O.A.C. 248; 47 D.L.R.(4th) 381 (C.A.), refd to. [para. 44].
Meyers v. Walters Cycle Co. (1990), 85 Sask.R. 222 (C.A.), dist. [para. 46].
Statutes Noticed:
Business Corporations Act/Sociétés par actions, Loi sur les, R.S.O. 1990, c. B-16, sect. 131 [para. 47].
Business Corporations Act, R.S.S. 1978, c. B-10, sect. 114 [para. 46].
Business Corporations Act, S.A. 1981, c. B-15, sect. 114 [para. 47].
Business Corporation Law, N.Y. Consol. Laws 1983, sect. 630 [para. 21].
Business Corporation Law, N.Y. Laws 1961, c. 855, sect. 630 [para. 18].
Canada Business Corporations Act/Sociétés par actions, Loi sur les, R.S.C., 1985, c. C-44, sect. 119(1) [para. 1].
Canada Business Corporations Act/Sociétés commerciales canadiennes, Loi sur les, S.C. 1974-75-76, c. 33, sect. 114 [para. 1].
Canada Joint Stock Companies Act/Compagnies par actions an Canada, Acte des, 1877, S.C. 1877, c. 43, sect. 69 [para. 23].
Canada Joint Stock Companies Letters Patent Act, 1869/Compagnies par actions constituées par lettres patentes, Acte du Canada sur les, 1869, S.C. 1869, c. 13, sect. 49 [para. 22].
Civil Code of Lower Canada/Code civil du Bas-Canada, art. 1065 [para. 39].
Companies Act/Compagnies, Loi sur les, R.S.Q. 1977, c. C-38, sect. 96 [para. 7].
Companies Act/Compagnies, Loi des, 1934, S.C. 1934, c. 33, sect. 96 [para. 23].
Formation of corporations for manufacturing, mining, mechanical or chemical purposes, Act to Authorise the, N.Y. Laws 1848, c. 40, sect. 18 [para. 16].
Labour Standards Act, R.S.S. 1978, c. L-1, sect. 2 [para. 47].
Stock Corporation Law, N.Y. Laws 1901, c. 354, sect. 54 [para. 16].
Stock Corporation Law s. 71, am. 1952, c. 794, sect. 2 [para. 16].
Authors and Works Noticed:
Audet, Georges, Robert Bonhomme and Clément Gascon, Le congédiement en droit québécois en matière de contrat individuel de travail, 3 e éd., 1991, p. 2-1 [para. 39].
Beaulieu, Marie-Louis, De la responsabilité des directeurs de compagnies pour le salaire des employés (1930-31), 9 R. du D. 218 and 483, p. 220 [para. 28].
Bohémier, Albert, and Anne-Marie Poliquin, Réflexion sur la protection des salariés dans le cadre de la faillite ou de l'insolvabilité (1988), 48 R. du B. 75, p. 81 [para. 26].
Breton, Réjean, L'indemnité de congédiement en droit commun (1991), 31 C. de. D. 3, pp. 8 and 9 [para. 39].
Chabot, Marc, La protection des salaires en cas de faillite ou d'insolvabilité, 1985, p. 91 [para. 32].
Côté, Pierre-André, Interprétation des lois, 2 e éd., 1990, pp. 277 [para. 48, French version]; 497 [para. 24, French version].
Côté, Pierre-André. The Interpretation of Legislation in Canada (2nd Ed. 1991), pp. 248 [para. 48, English version]; 433 [para. 24, English version).
Goldstein, Yoine, Bankruptcy As It Affects Third Parties: Some Aspects, in Meredith Memorial Lectures 1985, Bankruptcy -- Present Problems and Future Perspectives, Montreal: Faculty of Law, McGill University, 1986, 198, p. 212 [para. 31].
Hoffman, Samuel, The Status of Shareholders and Directors Under New York's Business Corporation Law (1961-62), 11 Buff. L. Rev. 496, p. 544 [para. 18].
Iacobucci, Frank, Marilyn L. Pilkington and J. Robert Prichard, Canadian Business Corporations, 1977, p. 327 [para. 29].
Israels, Carlos L. Corporate Practice (3rd Ed. 1974), pp. 10-11 [para. 19].
Landry, Raymond A, Deux questions de politique législative en matière de faillite et d'insolvabilité: l'indemnisation des salariés et les traitements préférentiels (1986), 17 R.G.D. 305, pp. 310-311 [para. 30].
Planiol and Ripert, Traité pratique de droit civil français, 2 e éd., 1954, t. 11, pp. 102-103 [para. 38].
Rogers, Dwight, and Donald F. McManus, Stockholders' Booby-Trap: Partnership Liabilities of Stockholders Under Section 71, New York Stock Corporation Law (1953), 28 N.Y.U. L. Rev. 1149 [para. 20].
Counsel:
Guy Bertrand and Claude Dallaire, for the appellants;
André J. Payeur and Madeleine Renaud, for the respondents.
Solicitors of Record:
Bertrand, Larochelle & Assoc., Quebec, Que., for the appellants;
McCarthy, Tétrault & Assoc., Montreal, Que., for the respondents.
This appeal was heard on December 1, 1992 by, Lamer, C.J.C., L'Heureux-Dubé, Sopinka, Gonthier and Iacobucci, JJ., of the Supreme Court of Canada.
The judgment of the Supreme Court was delivered in both official languages on March 25, 1993, by L'Heureux-Dubé, J.
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...[2000] OJ No 49 (SCJ) ................................................................................. 387 Barrette v Crabtree Estate, [1993] 1 SCR 1027, 101 DLR (4th) 66, (sub nom Crabtree (Succession de) v Barrette) 10 BLR (2d) 1, 47 CCEL 1, (sub nom Barrette v Crabtree (Succession de)) ......
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