Kenmont Management Inc. v. Saint John Port Authority et al., 2002 NBCA 11

• Judge: Drapeau, Larlee and Robertson, JJ.A.
• Court: Court of Appeal (New Brunswick)
• Case Date: June 20, 2001
• Jurisdiction: New Brunswick
• Citations: 2002 NBCA 11;(2002), 248 N.B.R.(2d) 1 (CA)

Kenmont Mgt. v. Port Authority (2002), 248 N.B.R.(2d) 1 (CA);

    248 R.N.-B.(2e) 1; 646 A.P.R. 1

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

....................

Temp. Cite: [2002] N.B.R.(2d) TBEd. FE.013

Saint John Port Authority (defendant/appellant) v. Kenmont Management Inc. (plaintiff/respondent) and Service New Brunswick and The Province of New Brunswick (defendants/defendants)

(20/01/CA; 2002 NBCA 11)

Indexed As: Kenmont Management Inc. v. Saint John Port Authority et al.

New Brunswick Court of Appeal

Drapeau, Larlee and Robertson, JJ.A.

January 31, 2002.

Summary:

The plaintiff leased the former Brunterm container terminal in Saint John. The original lessor, Ports Canada, was succeeded by Saint John Port Authority. The plaintiff sought reimbursement from the Port Authority (the defendant) for real property taxes it paid from 1981 to 1995 for parcel "C" at the terminal. Particularly, the plaintiff asserted that under the lease terms, the defendant agreed to pay grants in lieu of taxes for parcel "C". The defendant argued that the provision to pay grants was ultra vires its scope under the Municipal Grants Act. Moreover, the defendant argued that the claim was statute barred.

The New Brunswick Court of Queen's Bench, Trial Division, in a decision reported at 237 N.B.R.(2d) 158; 612 A.P.R. 158, allowed the plaintiff's action. The provision to pay grants was not ultra vires the defendant's scope. Moreover, the claim was not statute barred. The court requested further briefs on the issues of damages, interest and costs and then issued further reasons to be read with the initial reasons. The Port Authority appealed. The plaintiff cross-appealed a 50% reduction in the interest on its award. The Province cross-appealed the trial judge's refusal to award it costs.

The New Brunswick Court of Appeal, Drapeau, J.A., dissenting in part, allowed the appeal and the cross-appeals.

Company Law - Topic 5110

Contracts by companies - Formalities - Seal - [See Contracts - Topic 243 ].

Contracts - Topic 243

Classification of contracts - Specialties - What constitutes - The plaintiff sought reimbursement from Saint John Port Authority, for real property taxes it paid from 1981 to 1995 for parcel "C" at the former Brunterm container terminal - The plaintiff asserted that under the lease terms the Port Authority agreed to pay grants in lieu of taxes for parcel "C" - The plaintiff further asserted that the claim was not statute barred because the lease contract was a "specialty" and therefore the limitation period was twenty years from the date the cause of action arose - The trial judge agreed that the claim was not statute barred - The parties to the 1980 lease intended to create a document under seal and the covenant to make the grant and to relieve the plaintiff from paying taxes was analogous to a bond under seal - The New Brunswick Court of Appeal held that the lease was not a specialty within the meaning of s. 2 of the Limitation of Actions Act - See paragraphs 25 to 73.

Government Programs - Topic 2908

Grants - To municipalities - Exemptions - [See Municipal Law - Topic 2152 ].

Municipal Law - Topic 2152

Municipal taxation or levies - Exemptions - Government property and undertakings - The plaintiff sought reimbursement from the Saint John Port Authority for real property taxes it paid from 1981 to 1995 for parcel "C" at the former Brunterm container terminal - The plaintiff asserted that, pursuant to the lease terms, the Port Authority agreed to pay grants in lieu of taxes for parcel "C" - The Port Authority argued that the provision to pay grants was ultra vires its scope under the Municipal Grants Act - The trial judge held that the provision to pay grants was not ultra vires - The New Brunswick Court of Appeal affirmed that the agreement to pay grants in lieu of taxes was not ultra vires the Port Authority when the lease was signed - See paragraphs 22 to 24.

Cases Noticed:

Acadian Pulp and Paper Ltd. v. New Brunswick (Minister of Municipal Affairs) (1973), 6 N.B.R.(2d) 755 (C.A.), refd to. [para. 10].

New Brunswick (Minister of Municipal Affairs) v. L'Eveque Catholique Romain d'Edmundston (1972), 4 N.B.R.(2d) 567 (C.A.), refd to. [para. 12].

Toronto (City) v. Olympia Edward Recreation Club Ltd., [1954] O.R. 14, affd. [1955] S.C.R. 454, refd to. [para. 12].

Irving Oil Ltd. v. New Brunswick (Minister of Municipal Affairs) (1974), 8 N.B.R.(2d) 290 (C.A.), refd to. [para. 12].

Canaport Ltd. v. New Brunswick (Minister of Municipal Affairs) (1974), 8 N.B.R.(2d) 314 (C.A.), refd to. [para. 12].

Kennebecasis Valley Recreational Centre Inc. v. New Brunswick (Minister of Municipal Affairs) (1975), 10 N.B.R.(2d) 303; 4 A.P.R. 303 (Q.B.), refd to. [para. 12].

Irving (J.D.) Ltd. v. New Brunswick (Minister of Municipal Affairs and Provincial Secretary) (1978), 22 N.B.R.(2d) 234; 39 A.P.R. 234 (Q.B.), refd to. [para. 12].

Chan Food Products Ltd. v. New Brunswick (Minister of Municipal Affairs) (1982), 44 N.B.R.(2d) 271; 116 A.P.R. 271 (T.D.), refd to. [para. 12].

Bégin (Gilles) Lumber Ltd. v. New Brunswick Geographic Information Corp. et al. (1995), 169 N.B.R.(2d) 29; 434 A.P.R. 29 (C.A.), refd to. [para. 12].

Miramichi Pulp & Paper Inc. v. Director of Assessment (N.B.) (1996), 172 N.B.R.(2d) 290; 439 A.P.R. 290 (C.A.), leave to appeal denied (1996), 205 N.R. 319; 181 N.B.R.(2d) 320; 460 A.P.R. 320 (S.C.C.), refd to. [para. 12].

Central and Eastern Trust Co. v. Irving Oil Ltd. and Stonehouse Motel and Restaurant Ltd., [1980] 2 S.C.R. 29; 31 N.R. 593; 39 N.S.R.(2d) 541; 71 A.P.R. 541, refd to. [para. 15].

Oromocto Development Corp. v. Montclair Construction Co. (1973), 7 N.B.R.(2d) 300 (Q.B.), varied on another point (1973), 7 N.B.R.(2d) 290 (C.A.), refd to. [paras. 16, 145].

Royal Trust Co. v. Alberta (Attorney General), [1930] A.C. 144; [1930] 1 D.L.R. 868 (P.C.), refd to. [paras. 30, 159].

Cork & Bandon Railway Co. v. Goode (1853), 13 C.B. 826; 138 E.R. 1427, refd to. [para. 30].

R. v. Williams et al., [1942] 3 D.L.R. 1; [1942] A.C. 541 (P.C.), refd to. [paras. 31, 154].

Portsmouth Banking Co., Helby's, Stokes', and Horsey's Cases, Re (1866), L.R. 2 Eq. 167, refd to. [paras. 35, 129].

Spoor v. Green (1874), L.R. 9 Exch. 99, refd to. [paras. 35, 131].

Friedmann Equity Developments Inc. v. Final Note Ltd. et al., [2000] 1 S.C.R. 842; 255 N.R. 80; 134 O.A.C. 280, refd to. [paras. 38, 88].

Suburban Construction Ltd. v. Newfoundland & Labrador Housing Corp. (1987), 66 Nfld. & P.E.I.R. 347; 204 A.P.R. 347; 38 D.L.R.(4th) 150 (Nfld. C.A.), refd to. [paras. 39, 173].

South-West Oxford (Township) v. Bailak (1990), 73 D.L.R.(4th) 411 (Ont. Gen. Div.), refd to. [paras. 48, 154].

Alton Renaissance I et al. v. Talamanca Management Ltd. et al. (1996), 88 O.A.C. 41 (Div. Ct.), refd to. [para. 50].

872899 Ontario Inc. v. Iacovoni (1998), 112 O.A.C. 280; 40 O.R.(3d) 715 (C.A.), leave to appeal refused (1999), 236 N.R. 199 (S.C.C.), refd to. [paras. 51, 154].

Nowlan v. Brunswick Construction Ltd. (1971), 5 N.B.R.(2d) 552 (Q.B.), revd. (1972), 5 N.B.R.(2d) 529 (C.A.), affd. [1975] 2 S.C.R. 523; 2 N.R. 164; 8 N.B.R.(2d) 76, refd to. [paras. 68, 139, 142].

Moncton (City) v. Aprile Contracting Ltd. et al. (1977), 17 N.B.R.(2d) 678; 23 A.P.R. 678 (Q.B.), affd. (1980), 29 N.B.R.(2d) 631; 66 A.P.R. 631 (C.A.), refd to. [paras. 69, 146].

Linton v. Royal Bank of Canada (1967), 60 D.L.R.(2d) 398 (Ont. H.C.), refd to. [para. 70].

Royal Bank of Canada v. Kiska (1967), 63 D.L.R.(2d) 582 (Ont. C.A.), refd to. [para. 70].

Standard Construction Co. v. New Brunswick (1977), 16 N.B.R.(2d) 497; 21 A.P.R. 497 (Q.B.), refd to. [para. 75].

Acadia Marble, Tile & Terrazzo Ltd. v. Oromocto Property Developments Ltd. (1998), 205 N.B.R.(2d) 358; 523 A.P.R. 358 (C.A.), refd to. [para. 75].

Northern Meat Packers Ltd. and Restigouche Abattoir Ltd. v. Roynat Ltd. (1986), 71 N.B.R.(2d) 212; 182 A.P.R. 212 (C.A.), refd to. [para. 76].

Consolidated-Bathurst Packaging Ltd. v. International Woodworkers of America, Local 2-69 and Labour Relations Board (Ont.), [1990] 1 S.C.R. 282; 105 N.R. 161; 38 O.A.C. 321, refd to. [para. 78].

Canadian Pacific Ltd. v. Matsqui Indian Band et al., [1995] 1 S.C.R. 3; 177 N.R. 325; 122 D.L.R.(4th) 129, refd to. [para. 78].

Suburban Construction Ltd. v. Newfoundland & Labrador Housing Corp. (1987), 66 Nfld. & P.E.I.R. 347; 204 A.P.R. 347; 38 D.L.R.(4th) 150 (Nfld. C.A.), refd to. [paras. 85, 173].

Rizzo & Rizzo Shoes Ltd. (Bankrupt), Re, [1998] 1 S.C.R. 27; 221 N.R. 241; 106 O.A.C. 1, refd to. [para. 104].

Ordon et al. v. Grail, [1998] 3 S.C.R. 437; 232 N.R. 201; 115 O.A.C. 1, refd to. [para. 106].

Norris v. Lloyds of London (1998), 205 N.B.R.(2d) 29; 523 A.P.R. 29 (C.A.), refd to. [para. 106].

Gallant v. Assumption Life Insurance Co. et al., [2001] N.B.R.(2d) Uned. 73 (T.D.), refd to. [para. 106].

Collin v. Westminster (Duke), [1985] 1 All E.R. 463 (C.A.), refd to. [para. 116].

Aiken v. Stewart Wrightson Members Agency Ltd., [1995] 3 All E.R. 449 (Q.B.), refd to. [para. 116].

Raja v. Lloyd's TSB Bank plc, [2001] E.W.J. No. 606 (C.A.), refd to. [para. 116].

Eastern Trust Co. et al. v. McAleer, [1931] 1 D.L.R. 509 (N.B.C.A.), refd to. [para. 125].

Peters v. Parkway Mercury Sales Ltd. (1973), 8 N.B.R.(2d) 445 (C.A.), refd to. [para. 126].

Romain v. Scuba TV, [1995] N.L.O.R. No. 381 (C.A.), refd to. [para. 133].

Leivers v. Barber, Walker and Co., [1943] K.B. 385, refd to. [para. 136].

Greene v. CBS Inc., [1995] E.W.J. No. 5114 (C.A.), refd to. [para. 138].

Global Financial Recoveries Ltd. v. Jones, [1999] T.N.L.R. No. 1012, refd to. [para. 138].

New Brunswick v. Olson (1984), 57 N.B.R.(2d) 321; 148 A.P.R. 321 (T.D.), refd to. [para. 147].

Alton Renaissance I v. Talamanca Management Ltd. (1996), 27 B.L.R.(2d) 307 (Ont. Gen. Div.), refd to. [para. 151].

Security Pacific Business Finance (Europe) Ltd. v. MGR Motor Factors Ltd., [1992] E.W.J. No. 2307 (C.A.), refd to. [para. 157].

Stein Estate v. Ship Kathy K, [1976] 2 S.C.R. 802; 6 N.R. 359; 62 D.L.R.(3d) 1, refd to. [para. 165].

Young v. Fletcher and Lakeburn Lumber Retail Ltd. (1995), 161 N.B.R.(2d) 116; 414 A.P.R. 116 (C.A.), refd to. [para. 165].

Caruthers v. Peninsular Life Insurance Co., 7 So.2d 841, refd to. [para. 168].

Statutes Noticed:

Limitation of Actions Act, R.S.N.B. 1973, c. L-8, sect. 2, sect. 2.1, sect. 7, sect. 9 [para. 54].

Municipal Grants Act, R.S.C. 1985, c. M-13, sect. 2, sect. 3, sect. 15, Schedule II, Schedule III [para. 14].

Municipal Grants Act, R.S.C. 1970, sect. 2, sect. 3 [para. 23].

Authors and Works Noticed:

Angell, J.K., A Treatise on the Limitations of Actions at Law (6th Ed. 1876), pp. 88, 89 [para. 110].

Anson, William R., Principles of the English Law of Contract (11th Ed. 1906), p. 343 [para. 135].

British Columbia, Law Reform Commission, Report on Limitations (1974), p. 27 [para. 28].

Canadian Encyclopedic Digest (Ont.) (3rd Ed. 1977), p. 37, para. 79 [para. 45].

Cheshire, G.C., and Fifoot, C.H.S., The Law of Contracts (1945), p. 407 [para. 136].

Cheshire, Fifoot and Furmston, Law of Contract (13th Ed. 1996), p. 652 [para. 138].

Corbin, A.L., Contracts (1952), vol. 1, p. 9 [para. 120].

Crawford and Falconbridge, Banking and Bills of Exchange (8th Ed. 1986), vol. 2, p. 1209 [para. 50].

Darby, J.G.N., and Bosanquet, F.A., A Practical Treatise on the Statute of Limitations in England and Ireland (1867), p. 98 [para. 130].

Franks, M., Limitation of Actions (1959), pp. 188, 189 [para. 136].

Hall, G.R., Statutory Interpretation in the Supreme Court of Canada: The Triumph of a Common Law Methodology (1998), 21 Adv. Q. 38, generally [para. 104].

Halsbury's Laws of England (1st Ed. 1907), vol. 1, p. 37 [para. 126].

Halsbury's Laws of England (1st Ed. 1911), vol. 19, para. 128 [para. 134].

Halsbury's Laws of England (2nd Ed. 1940), vol. 7, p. 67; vol. 20, para. 824 [para. 134].

Halsbury's Laws of England (3rd Ed. 1955), vol. 8, paras. 93, 94; vol. 24, paras. 400, 401 [para. 136].

Halsbury's Laws of England (1997) (4th Ed. - Reissue), vols. 9(1), para. 617; 28, paras. 676 [para. 158]; 882 [paras. 137, 159].

Herschorn, A., Documents Under Seal: Consequences and Complications, (1989), 10 A.Q. 129, p. 137 [paras. 44, 160].

Holdsworth, W., A History of English Law (1966), vol. 3, pp. 103, fn. 5 [para. 112]; 417 to 429 [para. 112].

Josling, J.F., Periods of Limitation (7th Ed. 1989), p. 115 [para. 137].

Leake, S.M., Principles of the Law of Contracts (8th Ed. 1931), p. 107 [para. 135].

Mew, Graeme, The Law of Limitations (1991), p. 139 [paras. 148, 153].

Morton, J.C., Limitation of Civil Actions (1988), pp. 25, 26 [para. 140]; 27 [para. 148].

Newsom, G.H., Limitation of Actions (2nd Ed. 1943), pp. 54 to 57 [para. 136].

Ontario, Law Reform Commission, Report on Amendment of the Law of Contract (1987), pp. 35 et seq. [para. 70].

Ontario, Law Reform Commission, Report on Limitation of Actions (1969), pp. 42, 43 [para. 113]; 62 [para. 28].

Parsons, T., Law of Contracts: Historical Writings in Law and Jurisprudence (1980), vol. 1, p. 7 [para. 115].

Salmond, Essays in Jurisprudence, pp. 93, 94 [para. 112].

Sullivan, R., Statutory Interpretation (1997), pp. 65, 66 [para. 55].

Sullivan, R., Statutory Interpretation (1996), pp. 90 to 96 [para. 119].

Western Australia, Law Reform Commission, Report on Limitation and Notice of Actions Project No. 36 - Part II (January 1997), c. 12, para. 12.11 [para. 150].

Williams, J.S., Limitation of Actions in Canada (2nd Ed. 1980), pp. 49, 50 [para. 148].

Williston, S., A Treatise on the Law of Contracts (4th Ed. 1990), vol. 1, pp. 31 [para. 119]; 80, 81 [para. 168]; vol. 2, p. 60 [para. 126].

Wood, H.G., A Treatise on the Limitation of Actions at Law and in Equity (1883), pp. 64, 65 [para. 132].

Counsel:

Thomas B. Drummie, Q.C., and Deno P. Pappas, Q.C., for the appellant;

Rodney J. Gillis, Q.C., and John C. Gillis, for the respondent, Kenmont Management Inc.;

C. Clyde Spinney, Q.C., for the respondents, Service New Brunswick and the Province of New Brunswick.

This appeal and cross-appeals were heard on June 20, 2001, before Drapeau, Larlee and Robertson, JJ.A., of the New Brunswick Court of Appeal. The decision of the court was delivered on January 31, 2002, when the following opinions were filed:

Robertson, J.A., (Larlee, J.A., concurring) - see paragraphs 1 to 82;

Drapeau, J.A., dissenting in part - see paragraphs 83 to 175.