Kamitomo and Kamitomo v. Pasula, Pasula, Macleod Stedman Ltd., Gambles Canada Ltd. and Sweeting, (1983) 50 A.R. 280 (QB)

• Judge: Kryczka, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: December 19, 1983
• Citations: (1983), 50 A.R. 280 (QB)

Kamitomo v. Pasula (1983), 50 A.R. 280 (QB)

MLB headnote and full text

Kamitomo and Kamitomo v. Pasula, Pasula, MacLeod Stedman Ltd., Gambles Canada Ltd. and Sweeting

(Action No. 139400)

Indexed As: Kamitomo and Kamitomo v. Pasula, Pasula, Macleod Stedman Ltd., Gambles Canada Ltd. and Sweeting

Alberta Court of Queen's Bench

Judicial District of Calgary

Kryczka, J.

December 19, 1983.

Summary:

Kamitomos leased their premises for ten years to the Pasulas for use as a franchised dealer of the supplier Macleod Stedman Ltd. At first Kamitomos refused to sign the lease unless it was signed by the supplier because substantial renovations were to be made to the premises. The supplier refused to sign. Kamitomos and the Pasulas signed the lease after the supplier orally agreed to indemnify both the Kamitomos and the Pasulas against any loss arising from the inability of the Pasulas' dealership to make the rental payments. The Pasulas defaulted and the Kamitomos sued the Pasulas and the supplier.

The Alberta Court of Queen's Bench allowed the action by the Kamitomos against the Pasulas and also against the supplier on the oral agreement of indemnity.

Contracts - Topic 8405

Collateral agreements - When valid - A landlord signed a lease with a dealer only after the dealer's supplier orally agreed to indemnify the landlord against any loss resulting from the dealer's inability to make the rental payments - The Alberta Court of Queen's Bench referred to the circumstances when such a collateral contract is valid and binding (see paragraphs 27 to 33) and held the supplier liable to the landlord.

Guarantee and Indemnity - Topic 7002

Indemnity - Contract of indemnity defined - The Alberta Court of Queen's Bench distinguished a contract of indemnity and a guarantee (see paragraph 49).

Contracts - Topic 8203

Statute of Frauds - Contracts within statute, promise to answer for debt of another, what constitutes - The Alberta Court of Queen's Bench stated that an indemnity agreement does not fall within the phrase "promise to answer for the debt . . . of another" as found in the Statute of Frauds (see paragraph 65).

Evidence - Topic 2401

Presumptions - Inference from failure to call available evidence - The Alberta Court of Queen's Bench drew an adverse inference from the failure of a party to call available evidence respecting an important issue in an action (see paragraphs 67 to 78).

Cases Noticed:

J. Evans & Son (Portsmouth) Ltd. v. Andrea Merzario Ltd., [1976] 2 All. E.R. 930 (C.A.), refd to. [para. 27].

Esso Petroleum Co. Ltd. v. Mardon, [1976] 1 Q.B. 801, refd to. [para. 32].

Forth v. Stanton (1669), L WMS. Saund. 210, 85 E.R. 217, refd to. [para. 43].

Thomas v. Cook (1828), 8 B&C. 727, refd to. [para. 44].

Guild & Co. v. Conrod, [1894] 2 Q.B. 885, refd to. [para. 47].

Beattie v. Dinnick (1895), 27 O.R. 285, refd to. [para. 49].

Harburg India Rubber Comb Company v. Martin, [1902] 1 K.B. 778, refd to. [para. 49].

Fitzgerald v. Dressler (1859), 7 C.B.N.S. 374, refd to. [para. 53].

Sutton & Co. v. Grey, [1894] 1 Q.B. 285, refd to. [para. 54].

Davys v. Buswell, [1913] 2 K.B. 47, refd to. [para. 55].

Sarbit v. Hanson & Booth Fisheries (Canadian) Company Ltd., [1950] 2 W.W.R. 54, reversed on appeal (1950), 1 W.W.R.(N.S.) 115, refd to. [para. 59].

Barnes v. Union Steamships Ltd. (1954), 13 W.W.R. 72; affd., 14 W.W.R. 673 (B.C.C.A.), refd to. [para. 70].

Blatch v. Archer, [1895] A.C. 310, refd to. [para. 71].

R. v. Burdett (1820), 4 B & Ald. 95, refd to. [para. 72].

State v. Grebe (1877), 17 Kan. 458, refd to. [para. 73].

Panarctic Oils Ltd. v. Menasco Manufacturing Company (1983), 41 A.R. 451 (Alta. C.A.), refd to. [para. 76].

Levesque et al. v. Comeau et al., [1970] S.C.R. 1010, refd to. [para. 78].

Morin v. Hammond Lumber Company, [1923] S.C.R. 140, refd to. [para. 82].

Statutes Noticed:

Statute of Frauds (Alta.) [para. 41].

Authors and Works Noticed:

Wigmore, Evidence in Trials at Common Law, 1979 (Chadbourn Rev.), vol 2, p. 192 [para. 69].

Sopinka & Lederman, The Law of Evidence in Civil Cases, 1979, p. 535 [para. 71].

Counsel:

A. Bloomenthal, for the plaintiff;

Lawrence Manning, for the defendant, Pasula;

M. O'Byrne, for the defendant, Macleod.

This case was heard by Kryczka, J., of the Alberta Court of Queen's Bench. The judgment of Kryczka, J., was delivered at Calgary, Alberta, on December 19, 1983.