Barrette v. Succession Crabtree, (1993) 150 N.R. 272 (SCC)

JudgeSopinka, Gonthier and Iacobucci, JJ.
CourtSupreme Court (Canada)
Case DateMarch 25, 1993
JurisdictionCanada (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]

....................

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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46 practice notes
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    • Irwin Books Bankruptcy and Insolvency Law in Canada. Cases, Materials, and Problems Part V
    • 23 d0 Junho d0 2019
    ...J (Gen Div)) ......................................................................................... 532 Barrette v Crabtree Estate , [1993] 1 SCR 1027, 101 DLR (4th) 66 .......................................344, 345 Bassano Growers Ltd v Price Waterhouse Ltd, 1998 ABCA 198, 66 Alta L R ......
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    • 5 d0 Agosto d0 2018
    ...[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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    • Irwin Books Statutory Interpretation. Third Edition Preliminary Sections
    • 23 d4 Junho d4 2016
    ...Co (1997), 36 OR (3d) 616, 154 DLR (4th) 385, [1997] OJ No 5055 (CA) ........................148–49 Barrette v Crabtree Estate, [1993] 1 SCR 1027, 101 DLR (4th) 66, [1993] SCJ No 37 ......................................................................................... 233 Barrie Public U......
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    ...to. [para. 59]. R.B. v. G.B. (2000), 227 N.B.R.(2d) 137; 583 A.P.R. 137 (C.A.), refd to. [para. 59]. Barrette v. Succession Crabtree, [1993] 1 S.C.R. 1027; 150 N.R. 272; 53 Q.A.C. 279, refd to. [para. Bérubé v. Lévesque (1999), 219 N.B.R.(2d) 8; 561 A.P.R. 8 (C.A.), refd to. [para. 63]. Gro......
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39 cases
  • Western Surety Co. v. National Bank of Canada, 2001 NBCA 15
    • Canada
    • New Brunswick Court of Appeal (New Brunswick)
    • 20 d2 Fevereiro d2 2001
    ...to. [para. 59]. R.B. v. G.B. (2000), 227 N.B.R.(2d) 137; 583 A.P.R. 137 (C.A.), refd to. [para. 59]. Barrette v. Succession Crabtree, [1993] 1 S.C.R. 1027; 150 N.R. 272; 53 Q.A.C. 279, refd to. [para. Bérubé v. Lévesque (1999), 219 N.B.R.(2d) 8; 561 A.P.R. 8 (C.A.), refd to. [para. 63]. Gro......
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7 books & journal articles
  • Table of Cases
    • Canada
    • Irwin Books Bankruptcy and Insolvency Law in Canada. Cases, Materials, and Problems Part V
    • 23 d0 Junho d0 2019
    ...J (Gen Div)) ......................................................................................... 532 Barrette v Crabtree Estate , [1993] 1 SCR 1027, 101 DLR (4th) 66 .......................................344, 345 Bassano Growers Ltd v Price Waterhouse Ltd, 1998 ABCA 198, 66 Alta L R ......
  • Table of Cases
    • Canada
    • Irwin Books The Law of Partnerships and Corporations. Fourth Edition
    • 5 d0 Agosto d0 2018
    ...[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)) ......
  • Table of cases
    • Canada
    • Irwin Books Statutory Interpretation. Third Edition Preliminary Sections
    • 23 d4 Junho d4 2016
    ...Co (1997), 36 OR (3d) 616, 154 DLR (4th) 385, [1997] OJ No 5055 (CA) ........................148–49 Barrette v Crabtree Estate, [1993] 1 SCR 1027, 101 DLR (4th) 66, [1993] SCJ No 37 ......................................................................................... 233 Barrie Public U......
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