Duchon Signs Ltd. v. Raminhos, (1984) 27 Man.R.(2d) 200 (CA)

• Judge: Hall, Huband and Philp, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: April 03, 1984
• Jurisdiction: Manitoba
• Citations: (1984), 27 Man.R.(2d) 200 (CA)

Duchon Signs Ltd. v. Raminhos (1984), 27 Man.R.(2d) 200 (CA)

MLB headnote and full text

Duchon Signs Limited v. Raminhos

(Suit No. 426/83)

Indexed As: Duchon Signs Ltd. v. Raminhos

Manitoba Court of Appeal

Hall, Huband and Philp, JJ.A.

May 2, 1984.

Summary:

Duchon Signs rented a display sign to Raminhos for a monthly rental fee for five years. Raminhos stopped paying rent after his business premises were damaged by fire. After seven months, Duchon Signs repossessed the sign and sued Raminhos for the arrears of rent and the accelerated rent due under the lease. The Manitoba County Court, in a decision reported in 25 Man.R.(2d) 219, allowed the action in part. The court allowed the claim for arrears of rent only. Duchon Signs appealed.

On appeal, Duchon Signs abandoned its claim for accelerated rent and, instead, sought damages for breach of the lease by Ramihos. The Manitoba Court of Appeal, Huband, J.A., dissenting, allowed the appeal and awarded Duchon Signs damages.

Damages - Topic 5946

Contracts - Lease of goods - Breach by lessee - Measure of damages on retaking by lessor - The plaintiff designed, manufactured and leased a unique display sign to the defendant - The defendant breached the lease by stopping rent payments after his business was damaged by fire - The plaintiff repossessed the sign - The Manitoba Court of Appeal held that the plaintiff could recover damages for repudiation of the lease by the defendant lessee equal to the cost of the sign less rent payments received, the deposit and the salvage value of the sign - See paragraphs 11 to 18.

Cases Noticed:

Financings Ltd. v. Baldock, [1963] 1 All E.R. 443, dist. [para. 1].

Canadian Acceptance Corporation Limited v. Regent Park Butcher Shop Limited et al. (1969), 67 W.W.R.(N.S.) 297, dist. [para. 2].

Direct Leasing Limited v. Chu, Allan and Gray (1976), 1 B.C.L.r. 166 (B.C.S.C.), refd to. [para. 10].

Neonex International Limited v. Wassill and Pollock, [1974] 1 W.W.R. 587 (Sask. D.C.), refd to. [para. 10].

Highway Properties Limited v. Kelly, Douglas and Company Limited, [1971] S.C.R. 562, consd. [para. 14].

Acme Neon Signs v. Testart and Douglas, [1952] O.W.N. 601 (H.C. of J.), refd to. [para. 15].

Counsel:

D.A. Primeau, for the appellant;

G.T. Hodgson, for the respondent.

This appeal was heard before Hall, Huband and Philp, JJ.A., of the Manitoba Court of Appeal on April 3, 1984. The decision of the Court of Appeal was delivered on May 2, 1984, when the following opinions were filed:

Philp, J.A. - see paragraphs 1 to 20;

Huband, J.A., dissenting - see paragraphs 21 to 32.

Hall, J.A., concurred with Philp, J.A.