Colhoun v. Lombard General Insurance Co. of Canada et al., (2003) 231 Sask.R. 50 (QB)

• Judge: Zarzeczny, J.
• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: March 24, 2003
• Jurisdiction: Saskatchewan
• Citations: (2003), 231 Sask.R. 50 (QB);2003 SKQB 130

Colhoun v. Lombard General (2003), 231 Sask.R. 50 (QB)

MLB headnote and full text

Temp. Cite: [2003] Sask.R. TBEd. MR.069

Norman Colhoun and Laurie Colhoun (plaintiffs) v. Lombard General Insurance Company of Canada and Non-Marine Underwriters, Members of Lloyd's, London, England (defendants)

(1998 Q.B.G. No. 156; 2003 SKQB 130)

Indexed As: Colhoun v. Lombard General Insurance Co. of Canada et al.

Saskatchewan Court of Queen's Bench

Judicial Centre of Regina

Zarzeczny, J.

March 24, 2003.

Summary:

The plaintiffs claimed against the defendant insurer for losses they sustained as a result of damage to a flatbed trailer unit. The insurer's defence was that the trailer was not owned by the plaintiffs as of the date of the loss.

The Saskatchewan Court of Queen's Bench held that the trailer was not owned by the plaintiffs on the date of the loss and dismissed their action.

Sale of Goods - Topic 503

The contract - General principles - What constitutes - Colhoun purchased a flatbed trailer for his company (Lumsden Aero Inc.) for $6,380 - Colhoun and Flaman gave evidence that they had reached a verbal agreement that Lumsden Aero would sell the trailer to Flaman for $8,200 - They also claimed that Flaman later sold the trailer, by a written bill of sale, to Colhoun for $8,200 - No money ever changed hands between Flaman and Lumsden Aero or between Colhoun and Flaman - The Saskatchewan Court of Queen's Bench held that the purported verbal agreement between Lumsden Aero and Flaman did not constitute a valid agreement sufficient to convey title to the trailer to Flaman as the legal requirements for a valid sale were never met - No bill of sale was prepared, no consideration was paid and Flaman never took possession of the trailer or registered or insured it - As Flaman never owned the trailer, he could not transfer it to Colhoun.

Cases Noticed:

Karpa v. O'Shea (1968), 69 D.L.R.(2d) 305 (Alta. S.C.), affd. (1969), 3 D.L.R.(3d) 572 (Alta. C.A.), refd to. [para. 33].

Authors and Works Noticed:

Fridman, G.H.L., The Law of Contract (4th Ed. 1999), pp. 19, 20 [para. 32].

Waddams, S.M., The Law of Contracts (3rd Ed. 1993), p. 81 [para. 31].

Counsel:

Kenneth J. Brodt, for the plaintiffs;

Kevin W. Zimmerman, for the defendants.

This action was heard before Zarzeczny, J., of the Saskatchewan Court of Queen's Bench, Judicial Centre of Regina, who delivered the following judgment on March 24, 2003.