Evans Products Co. v. Crest Warehousing Co., (1979) 28 N.R. 148 (SCC)

• Judge: Martland, Pigeon, Dickson, Estey and McIntyre, JJ.
• Court: Supreme Court (Canada)
• Case Date: July 18, 1979
• Jurisdiction: Canada (Federal)
• Citations: (1979), 28 N.R. 148 (SCC);1979 CanLII 170 (SCC);[1980] 1 SCR 83;100 DLR (3d) 1;8 BLR 89;[1979] 5 WWR 385;28 NR 148

Evans Products v. Crest Warehousing (1979), 28 N.R. 148 (SCC)

MLB headnote and full text

Evans Products Co. Ltd. v. Crest Warehousing Co. Ltd.

Indexed As: Evans Products Co. v. Crest Warehousing Co.

Supreme Court of Canada

Martland, Pigeon, Dickson, Estey and McIntyre, JJ.

July 18, 1979.

Summary:

This case arose out of a claim for damages for the loss of goods stored in a warehouse. The plaintiff stored 230 crates of plywood in the defendant's warehouse. The plywood was virtually destroyed by fire. The defendant warehouseman admitted negligence but claimed that its liability was limited to $50.00 per crate or package in accordance with a clause in the storage contract. The trial court held that the limitation clause was invalid because it impaired the obligation of the warehouseman under s. 3 and s. 14 of the British Columbia Warehouse Receipts Act. The trial court awarded the plaintiff damages for its actual loss of $83,791.00. The warehouseman appealed to the British Columbia Court of Appeal.

The British Columbia Court of Appeal allowed the appeal and set aside the judgment of the trial court. The Court of Appeal held that the limitation clause in the storage contract did not impair the obligation of the warehouseman under the Warehouse Receipts Act and accordingly reduced the plaintiff's damages from $83,791.00 to $11,500.00. The plaintiff appealed to the Supreme Court of Canada.

The Supreme Court of Canada dismissed the appeal and affirmed the judgment of the British Columbia Court of Appeal.

Estey, J., dissenting, in the Supreme Court of Canada, would have allowed the appeal, would have set aside the judgment of the British Columbia Court of Appeal and would have restored the judgment of the trial court.

Bailment - Topic 4240

Warehousing and storage - Validity of clause limiting liability of warehouseman - The plaintiff stored 230 crates of plywood in the defendant's warehouse - The plywood was virtually destroyed by fire - The warehouseman admitted negligence but claimed that its liability was limited to $50.00 per crate or package in accordance with a clause in the storage contract - The plaintiff alleged that the limitation clause was void by virtue of s. 14 of the British Columbia Warehouse Receipts Act (which stated that a warehouseman is liable for the negligent loss of stored goods) and by s. 3 (which prohibited contract terms contrary to the act) - The Supreme Court of Canada held that the limitation clause in the storage contract was valid and that the warehouseman was only liable to the plaintiff for $11,500.00 rather than the plaintiff's actual loss of $83,791.00.

Cases Noticed:

England v. Lyon Fireproof Storage Co. (1928), 271 P. 532, refd to. [para. 22].

Statutes Noticed:

Warehouse Receipts Act, R.S.B.C. 1960, c. 404, sect. 3, sect. 14 [para. 3].

Authors and Works Noticed:

Williston on Contracts, rev. ed., vol. 4 (1936), page 2926 [para. 13].

Counsel:

David F. McEwen, for the appellant;

Harvey J. Grey, Q.C., for the respondent.

This appeal was heard by MARTLAND, PIGEON, DICKSON, ESTEY and McINTYRE, JJ., of the Supreme Court of Canada at Ottawa, Ontario, on February 22, 1979.

The judgment of the Supreme Court of Canada was delivered on July 18, 1979, and the following opinions were filed:

McINTYRE, J. - see paragraphs 1 to 16;

ESTEY, J., dissenting - see paragraphs 17 to 25.

MARTLAND, PIGEON and DICKSON, JJ., concurred with McINTYRE, J.