General Refractories Co. of Canada Ltd. v. Venturedyne Ltd. et al., [2002] O.T.C. 10 (SupCt)

• Judge: Himel, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: January 09, 2002
• Jurisdiction: Ontario
• Citations: [2002] O.T.C. 10 (SupCt)

General Refractories Co. v. Venturedyne, [2002] O.T.C. 10 (SupCt)

MLB headnote and full text

Temp. Cite: [2002] O.T.C. TBEd. JA.042

General Refractories Co. of Canada Ltd. (plaintiff) v. Venturedyne Ltd. and Carnes Company, Inc.  (defendants)

Venturedyne, Ltd. and Carnes Company, Inc. (plaintiffs by counterclaim) v. General Refractories Co. of Canada Ltd. and General Refractories Company (defendants by counterclaim)

(Court File No. 3409/85)

Indexed As: General Refractories Co. of Canada Ltd. v. Venturedyne Ltd. et al.

Court of Ontario

Superior Court of Justice

Himel, J.

January 9, 2002.

Summary:

This headnote contains no summary.

Conflict of Laws - Topic 7230

Contracts - Choice of law - By parties - See paragraphs 98 to 122 and 228 to 284.

Conflict of Laws - Topic 7232

Contracts - Choice of law - Jurisdiction with closest and most substantial connection - See paragraphs 98 to 122 and 228 to 284.

Contracts - Topic 6

General principles - General - What constitutes the contract - See paragraphs 74 to 97.

Contracts - Topic 2107

Terms - Express terms - Warranty clauses - See paragraphs 123 to 172.

Contracts - Topic 2120

Terms - Express terms - Exclusionary clauses - General - See paragraphs 123 to 227.

Contracts - Topic 7400

Interpretation - General principles - General - See paragraphs 56 to 122.

Damages - Topic 5832

Contracts - Sale of goods - Breach by seller - Measure of damages - See paragraphs 173 to 227.

Damages - Topic 5834

Contracts - Sale of goods - Breach by seller - Breach of warranty - See paragraphs 173 to 227.

Damages - Topic 5839

Contracts - Sale of goods - Breach by seller - Fundamental breach - See paragraphs 173 to 227.

Damages - Topic 5841

Contracts - Sale of goods - Breach by seller - Breach of terms respecting quality or fitness - See paragraphs 173 to 227.

Evidence - Topic 2401

Special modes of proof - Presumptions - Specific presumptions - Inference from failure to call or adduce available evidence - See paragraphs 69 to 73.

Evidence - Topic 6202

Parol evidence rule - General principles - Exceptions - General - See paragraphs 67 and 68.

Interest - Topic 5109

Interest as damages (prejudgment interest) - Breach of contract - Contract for sale of goods - See paragraphs 299 to 306.

Practice - Topic 5402

Judgments and orders - General - Currency of judgments (incl. conversion) - See paragraphs 285 to 298.

Practice - Topic 5704.1

Judgments and orders - Summary judgments - Effect of - See paragraphs 74 to 79.

Sale of Goods - Topic 4054

Conditions and warranties - Warranties - Express warranty of fitness - See paragraphs 123 to 146 and 195 to 227.

Sale of Goods - Topic 4062

Conditions and warranties - Warranties - Express warranty as to quality - See paragraphs 123 to 146 and 195 to 227.

Sale of Goods - Topic 4106

Conditions and warranties - Implied or statutory terms as to quality or fitness - Fitness or suitability of goods - See paragraphs 161 to 227.

Sale of Goods - Topic 4118

Conditions and warranties - Implied or statutory terms as to quality or fitness - Exclusionary clause - Effect of - See paragraphs 147 to 164 and 195 to 227.

Sale of Goods - Topic 6403

Breach - General - What constitutes - See paragraphs 195 to 227.

Sale of Goods - Topic 6503

Breach - Remedies of buyer - Damages - General - See paragraphs 173 to 227.

Sale of Goods - Topic 6504

Breach - Remedies of buyer - Measure of damages for breach of warranty - See paragraphs 173 to 227.

Sale of Goods - Topic 6507

Breach - Remedies of buyer - Rescission - Fundamental breach - See paragraphs 195 to 227.

Sale of Goods - Topic 6510

Breach - Remedies of buyer - Rescission - Breach of warranty or condition - See paragraphs 195 to 227.

Cases Noticed:

Eli Lilly & Co. et al. v. Novopharm Ltd. et al., [1998] 2 S.C.R. 129; 227 N.R. 201, refd to. [para. 58].

Leading Investments Ltd. v. Liebig (H.W.) & Co., [1986] 1 S.C.R. 70; 65 N.R. 209; 14 O.A.C. 159; 38 R.P.R. 201, refd to. [para. 59].

Hi-Tech Group Inc. v. Sears Canada Inc. (2001), 141 O.A.C. 56; 52 O.R.(3d) 97 (C.A.), refd to. [para. 59].

Hawrish v. Bank of Montreal, [1969] S.C.R. 515, refd to. [para. 60].

Anderson (Arthur) Inc. v. Toronto Dominion Bank et al. (1994), 71 O.A.C. 1; 17 O.R.(3d) 363, additional reasons (1994 ), 14 B.L.R.(2d) 1 (C.A.), leave to appeal refused (1994), 178 N.R. 397; 80 O.A.C. 240; 19 O.R.(3d) xvi (S.C.C.), refd to. [para. 61].

Carman Construction Ltd. v. Canadian Pacific Railway Co. and C.P. Rail, [1982] 1 S.C.R. 958; 42 N.R. 147, refd to. [para. 63].

Indian Molybdenum Ltd. v. R., [1951] 3 D.L.R. 497 (S.C.C.), refd to. [para. 64].

Kentucky Fried Chicken Canada v. Scott's Food Services Inc. et al. (1998), 114 O.A.C. 357 (C.A.), refd to. [para. 64].

Consolidated-Bathurst Export Ltd. v. Mutual Boiler and Machinery Insurance Co., [1980] 1 S.C.R. 888; 32 N.R. 488, refd to. [para. 65].

Toronto-Dominion Bank v. Leigh Instruments Ltd. (Bankrupt) et al. (1999), 124 O.A.C. 87; 45 O.R.(3d) 417 (C.A.), affing. (1999), 63 O.T.C. 1; 40 B.L.R.(2d) 1 (Gen. Div.), refd to. [para. 66].

Edper Brascan Corp. v. 117373 Canada Ltd. (2000), 50 O.R.(3d) 425 (Sup. Ct.), refd to. [para. 66].

Vieczorek et al. v. Piersma et al. (1987), 18 O.A.C. 308; 58 O.R.(2d) 583 (C.A.), refd to. [para. 71].

Shelanu Inc. v. Print Three Franchising Corp., [2000] O.T.C. 768 (Sup. Ct.), refd to. [para. 71].

Aguonie v. Galion Solid Waste Material Inc. et al. (1998), 107 O.A.C. 114; 38 O.R.(3d) 161 (C.A.), refd to. [para. 78].

Dawson et al. v. Rexcraft Storage and Warehouse Inc. et al. (1998), 111 O.A.C. 201; 164 D.L.R.(4th) 257 (C.A.), refd to. [para. 78].

Butler Machine Tool v. Ex-Cell-O Corp., [1979] All E.R. 965 (C.A.), refd to. [para. 83].

Dawson v. Helicopter Exploration Co., [1955] S.C.R. 868, refd to. [para. 85].

Tywood Industries Ltd. v. St. Anne-Nackawic Pulp and Paper Co. (1979), 100 D.L.R.(3d) 374 (Ont. H.C.), refd to. [para. 91].

Trigg v. MI Movers International Transport Services Ltd. et al. (1991), 50 O.A.C. 321; 4 O.R.(3d) 562 (C.A. ), refd to. [para. 93].

Texserv Inc. v. Incon Container USA Ltd. et al., [2000] O.T.C. Uned. 396; 48 O.R.(3d) 427 (Sup. Ct.), refd to. [para. 95].

Schroeder (A.) Music Publishing Co. v. Macaulay, [1974] 3 All E.R. 616 (H.L.), refd to. [para. 106].

Tilden Rent-A-Car Co. v. Clendenning (1978), 18 O.R.(2d) 601; 83 D.L.R.(3d) 400 (C.A.), refd to. [para. 106].

Federal Commerce and Navigation Co. v. Tradax Export S.A., [1978] A.C. 1 (P.C.), refd to. [para. 106].

Kendall & Sons v. Lillico (William) & Sons, [1969] 2 A.C. 31 (H.L.), refd to. [para. 110].

Imperial Life Assurance Co. of Canada v. Colmenares (1967), 62 D.L.R.(2d) 138 (S.C.C.), refd to. [para. 113].

Global Experience v. 855983 Ontario Ltd. et al. (1998), 54 O.T.C. 72 (Gen. Div.), refd to. [para. 114].

Richardson (James) & Sons Ltd. v. Ship Burlington, [1931] S.C.R. 76, refd to. [para. 116].

Ontario Bus Industries Inc. v. Ship Federal Calumet et al., [1992] 1 F.C. 245; 47 F.T.R. 149 (T.D.), refd to. [para. 116].

R. v. International Trustee for Protection of Bondholders, [1937] 2 All E.R. 164 (H.L.), refd to. [para. 119].

Coast Lines Ltd. v. Hudig & Veder, [1972] 1 All E.R. 451 (C.A.), refd to. [para. 119].

Hawrish v. Bank of Montreal, [1969] S.C.R. 515, refd to. [para. 131].

National Trustco v. Mead, [1990] 2 S.C.R. 410; 112 N.R. 1; 87 Sask.R. 161; 71 D.L.R.(4th) 488, refd to. [para. 143].

Scanlon v. Castlepoint Development Corp. et al. (1992), 59 O.A.C. 191; 11 O.R.(3d) 744 (C.A.), refd to. [para. 143].

Gregorio v. Intrans-Corp. and Paccar of Canada Ltd. (1994), 72 O.A.C. 51; 115 D.L.R.(4th) 200 (C.A.), refd to. [para. 149].

Johnson Matthey Bankers Ltd. v. State Trading Corp. of India Ltd., [1984] 1 Lloyd's Rep. 427 (Q.B.), refd to. [para. 155].

Owen Sound Public Library Board v. Mial Developments Ltd. (1979), 102 D.L.R.(3d) 685 (Ont. C.A.), refd to. [para. 158].

Fisch v. Vojimirovic et al. (1997), 28 O.T.C. 53 (Gen. Div.), refd to. [para. 160].

Saint John (City) v. Irving Oil, [1966] S.C.R. 581; 58 D.L.R.(2d) 404, refd to. [para. 183].

Abram Steamship Co. v. Westville Shipping Co., [1923] A.C. 773 (H.L.), refd to. [para. 199].

Suisse Atlantique Societe d'Aramement maritime S.A. v. N.V. Rotterdamsche Kolen Centrale, [1967] 1 A.C. 361 (H.L.), refd to. [para. 206].

Schofield v. Gafco Enterprises Ltd. (1983), 43 A.R. 262; 25 Alta. L.R.(2d) 238 (C.A.), refd to. [para. 206].

Burroughs Business Machines Ltd. v. Feed-Rite Mills (1962) Ltd. (1973), 14 N.R. 549; 42 D.L.R.(3d) 303 (Man. C.A.), affd. (1976), 14 N.R. 547; 64 D.L.R.(3d) 767 (S.C.C.), refd to. [para. 208].

McLean (R.G.) Ltd. v. Canadian Vickers Ltd. (1970), 15 D.L.R.(3d) 15 (Ont. C.A.), refd to. [para. 208].

Syncrude Canada Ltd. et al. v. Hunter Engineering Co. and Allis-Chalmers Canada Ltd. et al., [1989] 1 S.C.R. 426; 92 N.R. 1; 57 D.L.R.(4th) 321; [1989] 3 W.W.R. 385, refd to. [para. 210].

Kordas v. Stokes Seeds Ltd. (1992), 59 O.A.C. 58; 11 O.R.(3d) 129 (C.A.), refd to. [para. 213].

Hickman Motors Ltd. v. Smith's Enterprises Ltd. and Smith (1982), 44 Nfld. & P.E.I.R. 280; 130 A.P.R. 280 (Nfld. Dist. Ct.), refd to. [para. 216].

Sunnyside Greenhouses Ltd. v. Golden West Seeds Ltd. (1973), 33 D.L.R.( 3d) 384 (S.C.C.), affing. [1972] 4 W.W.R. 420; 27 D.L.R.(3d) 434 (Alta. C.A.), refd to. [para. 223].

Bausch & Lomb Optical Co. v. Maislin Transport Ltd. (1976), 10 O.R.(2d) 533 (H.C.), refd to. [para. 229].

Lyon v. Lyon, [1959] O.R. 305 (C.A.), refd to. [para. 229].

Union Carbide Corp. v. Oscar Mayer Foods Corp. (1991), 947 F.2d 1333 (7th Cir.), refd to. [para. 253].

Schulze, Re, 831 F.2d 714, refd to. [para. 253].

Barliant v. Follett Corp. (1985), 138 Ill. App.3d 756; 483 N.E.2d 1312 (1st Dist.), refd to. [para. 253].

Binks Manufacturing Co. v. National Presto Industries Inc. (1983), 709 F.2d 1109 (7th Cir.), refd to. [para. 258].

Price Brothers Co. v. Philadelphia Gear Corp. (1981), 649 F.2d 416 (6th Cir.), refd to. [para. 258].

Connop v. Canadian Car Division Hawker Siddeley Canada Ltd. (1978), 24 O.R.(2d) 593 (C.A.), refd to. [para. 261].

North American Lightning Inc. v. Hopkins Manufacturing Corp. (1994), 37 F.3d 1253 (7th Cir.), refd to. [para. 265].

Lynch Imports Ltd. v. Frey (1990), 200 Ill. App. 781; 558 N.E.2d 484 (1st Dist.), refd to. [para. 265].

United Air Lines Inc. v. Canductron Corp. (1979), 69 Ill. App.3d 847; 387 N.E.2d 1272 (1st Dist.), refd to. [para. 265].

Sorce v. Naperville Jeep Eagle (1999), 309 Ill. App.3d 313 (2nd Dist.), refd to. [para. 270].

GNP Commodities Inc. v. Walsh Heffernan Co. (1981), 95 Ill. App.3d 966; 420 N.E.2d 659 (1st Dist.), refd to. [para. 272].

Overland Bond & Investment Corp. v. Howard (1972), 9 Ill. App.3d 348; 292 N.E.2d 168 (1st Dist.), refd to. [para. 272].

Corporate Bank and Trust Co. v. Toronto Dominion Bank, [1987] O.J. No. 418 (H.C.), refd to. [para. 285].

Batavia Times Publishing Co. v. Davis (1978), 20 O.R.(2d) 437 (H.C.), refd to. [para. 288].

Gatineau Power Co. v. Crown Life Insurance Co. and Royal Trust Co., [1945] 4 D.L.R. 1 (S.C.C.), refd to. [para. 293].

Oshawa Group Ltd. v. Great American Insurance Co. (1982), 132 D.L.R.(3d) 453 (Ont. C.A.), refd to. [para. 293].

Nordholm I/S v. Canada (1996), 105 F.T.R. 161 (T.D.), refd to. [para. 293].

Stevenson Estate v. Siewert et al. (2000), 266 A.R. 35; 228 W.A.C. 35 (C.A.), refd to. [para. 293].

Bifolchi v. United States Fidelity - see Bifolchi et al. v. Sherar (Litigation Administrator of).

Bifolchi et al. v. Sherar (Litigation Administrator of) (1995), 25 O.R.(3d) 637 (Gen. Div.), refd to. [para. 304].

Sawadski v. Heil (1992), 52 O.A.C. 127; 86 D.L.R.(4th) 364 (C.A.), refd to. [para. 305].

Graham et al. v. Rourke (1990), 40 O.A.C. 301; 75 O.R.(2d) 622 (C.A.), refd to. [para. 306].

Statutes Noticed:

Courts of Justice Act, S.O. 1984, c. 11, sect. 131 [paras. 285, 287].

Rule of Civil Procedure (Ont.), rule 20.05(1), rule 20.05(2) [para. 76].

Sale of Goods Act, R.S.O. 1990, c. S-1, sect. 12(3), sect. 34 [para. 200]; sect. 53 [para. 148].

Authors and Works Noticed:

Castel, J.G., Canadian Conflict of Laws (4th Ed. 1997), pp. 155 to 162 [para. 229]; 593 [para. 98]; 161 [para. 239].

Fridman, G.H.L., Law of Contract in Canada (4th Ed. 1999), pp. 22 [para. 56]; 495 [para. 239]; 517 [para. 202]; 531 [para. 203]; 607 [para. 207]; 807 [para. 294].

Lewison, The Interpretation of Contracts (2nd Ed. 1997), pp. 162, 163 [para. 238].

Sopinka, Lederman and Bryant, Law of Evidence in Canada (2nd Ed. 1999), p. 297 [para. 71].

Waddams, S.M., The Law of Contracts (4th Ed.), para. 321 [para. 59].

Waddams, S.M., The Law of Damages (1999), para. 7.300 [para. 28].

Counsel:

Michael Penny and David Chernos, for the plaintiffs/defendants by counterclaim;

David Stockwood, Q.C., and Johanna Braden, for the defendants/plaintiffs by counterclaim.

This matter was heard on May 14-18, 22, 25, 28, 29, 31, June 1, 4-6, and 11-13, 2001, by Himel, J., of the Ontario Superior Court, who delivered the following decision on January 9, 2002.

Please note: The following judgment has not been edited.