MTK Auto West Ltd. v. Allen, 2003 BCSC 1613

JudgeKirkpatrick, J.
CourtSupreme Court of British Columbia (Canada)
Case DateOctober 01, 2003
JurisdictionBritish Columbia
Citations2003 BCSC 1613;[2003] B.C.T.C. 1613 (SC)

MTK Auto West Ltd. v. Allen, [2003] B.C.T.C. 1613 (SC)

MLB headnote and full text

Temp. Cite: [2003] B.C.T.C. TBEd. NO.007

MTK Auto West Ltd. doing business as MINI Richmond (plaintiff) v. Cheryl Allen (defendant)

(S80205; 2003 BCSC 1613)

Indexed As: MTK Auto West Ltd. v. Allen

British Columbia Supreme Court

New Westminster

Kirkpatrick, J.

October 23, 2003.

Summary:

This headnote contains no summary.

Contracts - Topic 4046

Remedies for breach - Liquidated damages and penalties - Whether deposit or amount specified is a penalty or liquidated damages - See paragraphs 14 to 17.

Contracts - Topic 4048

Remedies for breach - Liquidated damages and penalties - Penalty - What constitutes - See paragraphs 14 to 17.

Damages - Topic 201

Entitlement - Requirement of loss - See paragraphs 9 to 13.

Damages - Topic 1103

Liquidated damages - What constitutes a penalty - See paragraphs 14 to 17.

Equity - Topic 1065

Equitable relief - Relief from forfeiture - Penalties - Contractual - See paragraphs 18 to 30.

Cases Noticed:

Dunlop Pneumatic Tyre Co. v. New Garage and Motor Co., [1915] A.C. 79 (H.L.), refd to. [para. 15].

Clarke (H.F.) Ltd. v. Thermidaire Corp., [1976] 1 S.C.R. 319; 3 N.R. 133, refd to. [para. 15].

Volvo Truck Finance Canada Ltd. v. Premier Pacific Holdings Inc. et al., [2002] B.C.T.C. 1137 (S.C.), refd to. [para. 18].

Collins (J.G.) Insurance Agencies Ltd. v. Elsley Estate, [1978] 2 S.C.R. 916; 20 N.R. 1, refd to. [para. 19].

Shiloh Spinners Ltd. v. Harding, [1973] A.C. 691 (H.L.), refd to. [para. 20].

Dimensional Investments Ltd. v. Canada, [1968] S.C.R. 93, refd to. [para. 21].

32262 B.C. Ltd. v. See-Rite Optical Ltd. (1998), 216 A.R. 33; 175 W.A.C. 33 (C.A.), refd to. [para. 22].

Edmonton (City) v. Triple Five Corp. (1994), 158 A.R. 293 (Q.B.), refd to. [para. 23].

Ashland Scurlock Permian Canada Ltd. et al. v. NESI Energy Marketing Canada Ltd. (Bankrupt) (1998), 226 A.R. 242 (Q.B.), refd to. [para. 23].

Vohra Enterprises Ltd. v. Creative Industrial Corp. (1988), 23 B.C.L.R.(2d) 394 (S.C.), refd to. [para. 23].

Pam-Cor Investments Ltd. v. Friends & Neighbours Family Restaurant Ltd. (1987), 12 B.C.L.R.(2d) 387 (C.A.), refd to. [para. 25].

5000 Kingsway Ltd. v. F. & A. Enterprises Ltd. (1994), 36 R.P.R.(2d) 140 (B.C.S.C.), refd to. [para. 25].

Asfordby Storage and Haulage Ltd. v. Bauer, [1989] O.J. No. 2614 (H.C.), refd to. [para. 27].

Authors and Works Noticed:

Snell, Principles of Equity (30th Ed. 2000), para. 3-01 [para. 24].

Counsel:

J.L. Randall, for the plaintiff;

J.S. Mackoff, for the defendant.

This case was heard in Chambers, on October 1, 2003, before Kirkpatrick, J., of the British Columbia Supreme Court, who delivered the following decision on October 23, 2003.

Please note: The following judgment has not been edited.

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11 practice notes
  • Table of cases
    • Canada
    • Irwin Books Remedies: The Law of Damages. Third Edition Limiting Principles
    • June 21, 2014
    ...Man R (2d) 259, 36 CCEL (2d) 144 (QB) ............................................. 272 MTK Auto West Ltd v Allen, [2003] BCJ No 2430, 2003 BCSC 1613 .................................................................................. 525, 529 Mueller v Tait (1993), 33 RPR (2d) 157 (BCSC) .........
  • Table of Cases
    • Canada
    • Irwin Books Archive Remedies: the Law of Damages. Second Edition Part Three
    • September 8, 2008
    ...(2d) 144 (Q.B.) ......................................................... 240 MTK Auto West Ltd. v. Allen, [2003] B.C.J. No. 2430, 2003 BCSC 1613 .................................................................................. 456, 460 Mueller v. Tait (1993), 33 R.P.R. (2d) 157 (B.C.S.C.)......
  • Judicial Oversight of Remedy Stipulation
    • Canada
    • Irwin Books Remedies: The Law of Damages. Third Edition Limiting Principles
    • June 21, 2014
    ...(4th) 321 (QB): amount demanded from mortgagor was at least ten times the mortgagee’s actual loss. See also MTK Auto West Ltd v Allen , 2003 BCSC 1613 [ MTK ], where the amount claimed as liquidated damages was more than three times the greatest loss that could be sustained under the agreem......
  • Badesha et al. v. Snowland Sporting Goods Ltd. et al., 2015 BCSC 1229
    • Canada
    • Supreme Court of British Columbia (Canada)
    • July 16, 2015
    ...I decline to exercise my discretion and grant relief under s.24 of the Law and Equity Act . [182] In MTK Auto West Ltd. v. Allen , 2003 BCSC 1613 ( MTK Auto West Ltd. ), Kirkpatrick J. (as she then was) stated: [20] Where a party seeks relief from a penalty, the factors to be considered by ......
  • Request a trial to view additional results
6 cases
  • Badesha et al. v. Snowland Sporting Goods Ltd. et al., 2015 BCSC 1229
    • Canada
    • Supreme Court of British Columbia (Canada)
    • July 16, 2015
    ...I decline to exercise my discretion and grant relief under s.24 of the Law and Equity Act . [182] In MTK Auto West Ltd. v. Allen , 2003 BCSC 1613 ( MTK Auto West Ltd. ), Kirkpatrick J. (as she then was) stated: [20] Where a party seeks relief from a penalty, the factors to be considered by ......
  • Capital Steel Inc v Chandos Construction Ltd, 2019 ABCA 32
    • Canada
    • Alberta Court of Appeal (Alberta)
    • January 29, 2019
    ...3d 54 (Super. Ct.)(the Court declined to enforce an interest-escalation term on a promissory note default); MTK Auto West Ltd. v. Allen, 2003 BCSC 1613 (the Court declared a provision in a vehicle-purchase agreement that obliged the purchaser to pay the car dealer $5000 if the purchaser sol......
  • Maguire et al. v. Revelstoke Mountain Resort Limited Partnership et al., [2010] B.C.T.C. Uned. 1618 (SC)
    • Canada
    • British Columbia Supreme Court of British Columbia (Canada)
    • November 17, 2010
    ...of default by the purchaser may constitute a penalty that is unenforceable. [100] The plaintiffs rely on MTK Auto West Ltd. v. Allen , 2003 BCSC 1613, where Madam Justice Kirkpatrick (as she then was) considered whether a clause was one for liquidated damages or a penalty: "[15] The la......
  • EUROTREND FINE CARS LTD v. LI, 2020 SKQB 108
    • Canada
    • Saskatchewan Court of Queen's Bench of Saskatchewan (Canada)
    • April 13, 2020
    ...In contrast, in the case of MTK Auto West Ltd. v Allen, 2003 BCSC 1613, the British Columbia Supreme Court determined that the $10,000 liquidated damages clause was a penalty. Instead, the dealership there was awarded the difference between the retail and wholesale price of the vehicle, bei......
  • Request a trial to view additional results
3 books & journal articles
  • Table of cases
    • Canada
    • Irwin Books Remedies: The Law of Damages. Third Edition Limiting Principles
    • June 21, 2014
    ...Man R (2d) 259, 36 CCEL (2d) 144 (QB) ............................................. 272 MTK Auto West Ltd v Allen, [2003] BCJ No 2430, 2003 BCSC 1613 .................................................................................. 525, 529 Mueller v Tait (1993), 33 RPR (2d) 157 (BCSC) .........
  • Judicial Oversight of Remedy Stipulation
    • Canada
    • Irwin Books Remedies: The Law of Damages. Third Edition Limiting Principles
    • June 21, 2014
    ...(4th) 321 (QB): amount demanded from mortgagor was at least ten times the mortgagee’s actual loss. See also MTK Auto West Ltd v Allen , 2003 BCSC 1613 [ MTK ], where the amount claimed as liquidated damages was more than three times the greatest loss that could be sustained under the agreem......
  • Penalty clauses in Canadian contract law.
    • Canada
    • University of Toronto Faculty of Law Review Vol. 66 No. 2, March 2008
    • March 22, 2008
    ...Oldsmobile Ltd. v. 552234 B.C. Ltd., 2004 BCPC 154, 49 B.L.R. (3d) 247, [2004] B.C W.L.D. 792 [Wolfe]. (33) MTK Auto West Ltd. v. Allen, 2003 BCSC 1613, [2003] B.C.J. No. (34) Ibid. As the Court wrote at para. 22, "A court should not strike down a penalty clause as being unconscionable ligh......

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