Canadian National Railway Co. et al. v. Norsk Pacific Steamship Co. and Tug Jervis Crown et al., (1992) 137 N.R. 241 (SCC)
| Judge | Cory, McLachlin, Stevenson and Iacobucci, JJ. |
| Court | Supreme Court (Canada) |
| Case Date | May 02, 1991 |
| Jurisdiction | Canada (Federal) |
| Citations | (1992), 137 N.R. 241 (SCC);[1992] ACS no 40;91 DLR (4th) 289;1992 CanLII 105 (SCC);[1992] 1 SCR 1021;33 ACWS (3d) 357;[1992] CarswellNat 168;53 FTR 79;[1992] SCJ No 40 (QL);[1991] RRA 370;11 CCLT (2d) 1;137 NR 241 |
CNR v. Norsk Pacific Steamship Co. (1992), 137 N.R. 241 (SCC)
MLB headnote and full text
Norsk Pacific Steamship Company Limited, Norsk Pacific Marine Services Ltd., The Tug Jervis Crown and Francis MacDonnell (appellants) v. Canadian National Railway Company (respondent)
(No. 21838)
Indexed As: Canadian National Railway Co. et al. v. Norsk Pacific Steamship Co. and Tug Jervis Crown et al.
Supreme Court of Canada
La Forest, L'Heureux-Dubé, Sopinka,
Cory, McLachlin, Stevenson
and Iacobucci, JJ.
April 30, 1992.
Summary:
A barge was being towed by the Tug "Jervis Crown" which was being assisted by another tug. As the vessels proceeded along the Fraser River, the barge collided with a Public Works Canada railway bridge, causing extensive damage. The Canadian National Railway Co. and other users of the bridge, commenced an action against the Tug "Jervis Crown" and its owners for damages for pure economic loss resulting from the collision.
The Federal Court of Canada, Trial Division, in a decision reported 26 F.T.R. 82, allowed the Canadian National's claim for damages for pure economic loss. The tug and its owners appealed.
The Federal Court of Appeal, in decision reported 104 N.R. 321, dismissed the appeal. The tug and its owners appealed again.
The Supreme Court of Canada, La Forest, Sopinka and Iacobucci, JJ., dissenting, dismissed the appeal.
Damages - Topic 531
Limits of compensatory damages - Remoteness - Torts - Recoverable damages - Pure economic loss - The Supreme Court of Canada reviewed the law respecting recovery of economic loss - The court affirmed the flexible test for recovery of economic loss set out by the court in Nielson v. Kamloops, 54 N.R. 1 (S.C.C.) - The court extended the categories of cases in which economic loss may be recovered to cases where the plaintiff's operations are so closely allied to the operations of the party suffering physical damage and to its property that the plaintiff can be considered a joint or common venturer with the property owner even though the plaintiff has suffered no physical damage to its own property.
Damages - Topic 531
Limits of compensatory damages - Remoteness - Torts - Recoverable damages - Pure economic loss - A barge being towed by a tug hit a Public Works Canada railway bridge, causing extensive damage - The tug was at fault - The Canadian National Railway Co. which used the bridge sued the tug and its owners for damages for pure economic loss - The Federal Court of Canada, Trial Division, allowed the railway's claim - The Supreme Court of Canada affirmed the decision - The court held that the necessary duty and proximity were established, that valid purposes would be served by permitting recovery and that recovery would not open the floodgates to unlimited liability.
Cases Noticed:
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Statutes Noticed:
Civil Code of Lower Canada, art. 1053 [paras. 27, 215].
Authors and Works Noticed:
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Counsel:
P. D. Lowry and M.A. Clemens, for the appellants;
David McEwen, for the respondent.
Solicitors of Record:
Campney & Murphy, Vancouver, British Columbia, for the appellants;
McEwen, Schmitt & Co., Vancouver, British Columbia, for the respondent.
This appeal was heard on May 2, 1991, before, La Forest, L'Heureux-Dubé, Sopinka, Cory, McLachlin, Stevenson and Iacobucci, JJ., of the Supreme Court of Canada. The decision of the court was delivered in both official languages on April 30, 1992, including the following opinions:
McLachlin, J. (L'Heureux-Dubé and Cory, JJ., concurring) - see paragraphs 1 to 77;
Stevenson, J. (concurring) - see paragraphs 78 to 126;
La Forest, J., dissenting (Sopinka and Iacobucci, JJ., concurring) - see paragraphs 127 to 336.
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