Campeau v. Imperial Life Assurance Co. of Canada, (2005) 201 Man.R.(2d) 119 (CA)

JudgeTwaddle, Kroft and Freedman, JJ.A.
CourtCourt of Appeal (Manitoba)
Case DateSeptember 19, 2005
JurisdictionManitoba
Citations(2005), 201 Man.R.(2d) 119 (CA);2005 MBCA 148

Campeau v. Imperial Life (2005), 201 Man.R.(2d) 119 (CA);

    366 W.A.C. 119

MLB headnote and full text

Temp. Cite: [2005] Man.R.(2d) TBEd. DE.023

Aurèle C. Campeau (plaintiff/respondent) v. Desjardins Financial Security Life Assurance Co. (defendant/appellant)

(AI 04-30-05942; 2005 MBCA 148)

Indexed As: Campeau v. Imperial Life Assurance Co. of Canada

Manitoba Court of Appeal

Twaddle, Kroft and Freedman, JJ.A.

December 14, 2005.

Summary:

By mutual agreement in 1993, the plaintiff ceased to be in management with the defendant and returned to sales, as an independent contractor and a licensed sales agent of the defendant. Under the agreement, the plaintiff was given several benefits, including entitlement to the use of certain office space and to certain secretarial assistance until he reached age 71. In 2000, the defendant closed all offices in Canada. The plaintiff established an office in his home at a cost to him of $44,044. The plaintiff sued the defendant for damages respecting the past and future cost of office and secretarial assistance for him until he was 71.

The Manitoba Court of Queen's Bench awarded the plaintiff $250,000 in general damages for the defendant's breach of contract. The defendant appealed respecting the damage award.

The Manitoba Court of Appeal allowed the appeal and reduced the damage award to $44,044 (the cost of establishing a home office).

Editor's Note: for a related case see 146 Man.R.(2d) 318.

Contracts - Topic 7416

Interpretation - General principles - Most commercially reasonable interpretation - [See Damage Awards - Topic 1452 ].

Damage Awards - Topic 1452

Contracts - Employment contracts - Breach of - By mutual agreement in 1993, the plaintiff ceased to be in management with the defendant and returned to sales, as an independent contractor and a licensed sales agent of the defendant - Under the agreement, the plaintiff was given several benefits, including entitlement to the use of certain office space and to certain secretarial assistance until he reached age 71 - In 2000, the defendant closed all offices in Canada - The plaintiff established an office in his home at a cost to him of $44,044 - The plaintiff sued the defendant for damages for breach of contract respecting the past and future cost of office and secretarial assistance for him until he was 71 - The trial judge awarded the plaintiff $250,000 in general damages for the defendant's breach of contract - The defendant appealed respecting the damage award - The Manitoba Court of Appeal allowed the appeal and reduced the damage award to $44,044 (the cost of establishing a home office) - The court reviewed the agreement and held that a commercially rational interpretation of the agreement was that the office space and secretarial assistance to be provided by the defendant was to facilitate the plaintiff's sales of the defendant's products, at least to a reasonable degree - The plaintiff's sale of the defendant's product had become minimal - Absent the defendant's concession that it would be "fair and just" for the plaintiff to be compensated his out-of-pocket expenses spent on his home office as a rough proxy for the damages he suffered, the court might have awarded only nominal damages for the breach of contract.

Cases Noticed:

BG Checo International Ltd. v. British Columbia Hydro & Power Authority, [1993] 1 S.C.R. 12; 147 N.R. 81; 20 B.C.A.C. 241; 35 W.A.C. 241, refd to. [para. 10].

Baud Corp., N.V. v. Brook, [1979] 1 S.C.R. 633; 23 N.R. 181; 12 A.R. 271, refd to. [para. 27].

Asamera Oil Corp. v. Sea & Oil General Corp. - see Baud Corp., N.V. v. Brooks.

Bowlay Logging Ltd. v. Domtar Ltd. (1978), 87 D.L.R.(3d) 325 (B.C.S.C.), affd. (1982), 37 B.C.L.R. 195; 135 D.L.R.(3d) 179 (C.A.), refd to. [para. 29].

Eli Lilly & Co. et al. v. Novopharm Ltd. et al., [1998] 2 S.C.R. 129; 227 N.R. 201, refd to. [para. 31].

Manulife Bank of Canada v. Conlin, [1996] 3 S.C.R. 415; 203 N.R. 81; 94 O.A.C. 161, refd to. [para. 31].

Indian Molybdenum Ltd. v. Canada, [1951] 3 D.L.R. 497 (S.C.C.), refd to. [para. 32].

Charrington & Co. v. Wooder, [1914] A.C. 71 (H.L.), refd to. [para. 33].

Hill v. Nova Scotia (Attorney General), [1997] 1 S.C.R. 69; 206 N.R. 299; 157 N.S.R.(2d) 81; 462 A.P.R. 81; 142 D.L.R.(4th) 230, refd to. [para. 33].

White, Fluhman and Eddy v. Central Trust Co. and Smith Estate (1984), 54 N.B.R.(2d) 293; 140 A.P.R. 293; 7 D.L.R.(4th) 236 (C.A.), refd to. [para. 33].

Hydro Electric Board (Man.) v. Inglis (John) Co. et al. (1999), 142 Man.R.(2d) 1; 212 W.A.C. 1 (C.A.), refd to. [para. 33].

Moore (Geoffrey L.) Realty Inc. v. Manitoba Motor League (2003), 173 Man.R.(2d) 300; 293 W.A.C. 300; 2003 MBCA 71, refd to. [para. 33].

Paddon Hughes Development Co. v. Pancontinental Oil Ltd. et al. , [1999] 5 W.W.R. 726; 223 A.R. 180; 183 W.A.C. 180; 1998 ABCA 333, refd to. [para. 34].

Leading Investments Ltd. v. Liebig (H.W.) & Co., [1986] 1 S.C.R. 70; 65 N.R. 209; 14 O.A.C. 159, refd to. [para. 34].

Reardon Smith Line Ltd. v. Hansen-Tangen, [1976] 1 W.L.R. 989; [1976] 3 All E.R. 570 (H.L.), refd to. [para. 34].

Kentucky Fried Chicken Canada v. Scott's Food Services Inc. et al. (1998), 114 O.A.C. 357 (C.A.), refd to. [para. 35].

Chaplin v. Hicks, [1911] 2 K.B. 786 (C.A.), refd to. [para. 56].

Abraham v. Wingate Properties Ltd., [1986] 1 W.W.R. 568; 36 Man.R.(2d) 264 (C.A.), varied (1986), 37 Man.R.(2d) 267 (C.A.), refd to. [para. 56].

Martin v. Goldfarb et al. (1998), 112 O.A.C. 138; 41 O.R.(3d) 161 (C.A.), refd to. [para. 57].

Andronyk v. Klimchuk, [2000] M.J. No. 92 (C.A.), refd to. [para. 58].

Saulnier v. LeBlanc (2005), 288 N.B.R.(2d) 160; 751 A.P.R. 160; 20 M.V.R.(5th) 179; 2005 NBCA 79, refd to. [para. 64].

Vincent v. Abu-Bakare (2003), 259 N.B.R.(2d) 66; 681 A.P.R. 66 (C.A.), refd to. [para. 65].

Authors and Works Noticed:

Chitty on Contracts (27th Ed. 1994), pp. 1199 to 1200, para. 26-002 [para. 26].

Fridman, Gerald Henry Louis, The Law of Contract in Canada (4th Ed. 1999), pp. 480 [para. 31]; 796 [para. 56].

Fuller, L.L., and Purdue, W.R., The Reliance Interest in Contract Damages (1936-37), 46 Yale L.J. 52, p. 373 [para. 29].

Counsel:

H.I. Schachter and J.W. Feldschmid, for the appellant;

W.C. Kushneryk, Q.C., for the respondent.

This appeal was heard on September 19, 2005, before Twaddle, Kroft and Freedman, JJ.A., of the Manitoba Court of Appeal. Freedman, J.A., delivered the following judgment for the court on December 14, 2005.

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14 practice notes
  • B.C. Rail Partnership v. Standard Car Truck Co. et al., 2009 NSSC 240
    • Canada
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    ...et al. (1998), 114 O.A.C. 357; 1998 CarswellOnt 4170 (C.A.), refd to. [para. 69]. Campeau v. Imperial Life Assurance Co. of Canada (2005), 201 Man.R.(2d) 119; 366 W.A.C. 119; 2005 CarswellMan 473 (C.A.), refd to. [para. Campeau v. Desjardins Financial Security Life Assurance - see Campeau v......
  • Métis National Council Secretariat Inc. et al. v. Dumont, (2006) 204 Man.R.(2d) 265 (QB)
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    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • July 5, 2006
    ...710; 89 A.R. 81; 60 Alta. L.R.(2d) 289; 31 C.L.R. 51 (Q.B.), refd to. [para. 46]. Campeau v. Imperial Life Assurance Co. of Canada (2005), 201 Man.R.(2d) 119; 366 W.A.C. 119; 2005 MBCA 148, refd to. [para. Campeau v. Desjardins Financial Security Life Assurance Co. - see Campeau v. Imperial......
  • Danilovs Estate v. Gamble, 2009 MBQB 184
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • June 29, 2009
    ...173 Man.R.(2d) 300; 293 W.A.C. 300; 9 W.W.R. 385; 2003 MBCA 71, appld. [para. 37]. Campeau v. Imperial Life Assurance Co. of Canada (2005), 201 Man.R.(2d) 119; 366 W.A.C. 119; 2005 MBCA 148, refd to. [para. BG Checo International Ltd. v. British Columbia Hydro and Power Authority, [1993] 1 ......
  • Canadian Mortgage Servicing Corporation v. Korf,
    • Canada
    • Court of King's Bench of Saskatchewan (Canada)
    • February 6, 2023
    ...consistent with the modern “golden rule” of statutory interpretation. See Campeau v. Imperial Life Assurance Co. of Canada, 2005 MBCA 148, 201 Man.R. (2d) 119, and Moore (Geoffrey L.) Realty Inc. v. Manitoba Motor League, 2003 MBCA 71, 173 Man.R. (2d) 300 at paras. 1......
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13 cases
  • B.C. Rail Partnership v. Standard Car Truck Co. et al., 2009 NSSC 240
    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • August 13, 2009
    ...et al. (1998), 114 O.A.C. 357; 1998 CarswellOnt 4170 (C.A.), refd to. [para. 69]. Campeau v. Imperial Life Assurance Co. of Canada (2005), 201 Man.R.(2d) 119; 366 W.A.C. 119; 2005 CarswellMan 473 (C.A.), refd to. [para. Campeau v. Desjardins Financial Security Life Assurance - see Campeau v......
  • Métis National Council Secretariat Inc. et al. v. Dumont, (2006) 204 Man.R.(2d) 265 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • July 5, 2006
    ...710; 89 A.R. 81; 60 Alta. L.R.(2d) 289; 31 C.L.R. 51 (Q.B.), refd to. [para. 46]. Campeau v. Imperial Life Assurance Co. of Canada (2005), 201 Man.R.(2d) 119; 366 W.A.C. 119; 2005 MBCA 148, refd to. [para. Campeau v. Desjardins Financial Security Life Assurance Co. - see Campeau v. Imperial......
  • Danilovs Estate v. Gamble, 2009 MBQB 184
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • June 29, 2009
    ...173 Man.R.(2d) 300; 293 W.A.C. 300; 9 W.W.R. 385; 2003 MBCA 71, appld. [para. 37]. Campeau v. Imperial Life Assurance Co. of Canada (2005), 201 Man.R.(2d) 119; 366 W.A.C. 119; 2005 MBCA 148, refd to. [para. BG Checo International Ltd. v. British Columbia Hydro and Power Authority, [1993] 1 ......
  • Canadian Mortgage Servicing Corporation v. Korf,
    • Canada
    • Court of Queen's Bench of Saskatchewan (Canada)
    • February 6, 2023
    ...consistent with the modern “golden rule” of statutory interpretation. See Campeau v. Imperial Life Assurance Co. of Canada, 2005 MBCA 148, 201 Man.R. (2d) 119, and Moore (Geoffrey L.) Realty Inc. v. Manitoba Motor League, 2003 MBCA 71, 173 Man.R. (2d) 300 at paras. 1......
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