Pacific Playground Holdings Ltd. v. Endeavour Developments Ltd. et al., 2002 BCSC 126

• Judge: A.F. Wilson, J.
• Court: Supreme Court of British Columbia (Canada)
• Case Date: January 31, 2002
• Jurisdiction: British Columbia
• Citations: 2002 BCSC 126;[2002] B.C.T.C. 126 (SC)

Pacific Playground v. Endeavour Dev., [2002] B.C.T.C. 126 (SC)

MLB headnote and full text

Temp. Cite: [2002] B.C.T.C. TBEd. JN.060

Pacific Playground Holdings Ltd. (petitioner) v. Endeavour Developments Ltd., Eron Mortgage Corporation, 493461 B.C. Ltd., 490160 B.C. Ltd., Michael Roger Saunier, doing business as MDC Contracting and V. Roberts & Associates Ltd. (respondents)

(S2791)

Endeavour Developments Ltd. and Midtown Development Co. (1981) Ltd. (plaintiffs) v. Pacific Playground Holdings Ltd., P. Axel Robert Nissen and Watutco Enterprises Ltd. (defendants)

(C991085; 2002 BCSC 126)

Indexed As: Pacific Playground Holdings Ltd. v. Endeavour Developments Ltd. et al.

British Columbia Supreme Court

Campbell River/Vancouver

A.F. Wilson, J.

January 31, 2002.

Summary:

This headnote contains no summary.

Company Law - Topic 251

Nature of corporations - General - Distinct legal personality - See paragraphs 66 to 67.

Contracts - Topic 1604

Formation of contract - Mistake, misunderstanding or misrepresentation - Misrepresentation - What constitutes - See paragraphs 21 to 64.

Contracts - Topic 9905

Promissory estoppel - General principles - What constitutes promissory estoppel - See paragraphs 93 to 100.

Damages - Topic 201

Entitlement - Requirement of loss - See paragraphs 75 to 86.

Fraud and Misrepresentation - Topic 7

Fraudulent misrepresentation (deceit) - General principles - What constitutes fraud - See paragraphs 21 to 64.

Fraud and Misrepresentation - Topic 2506

Misrepresentation - General principles - Innocent misrepresentation - See paragraphs 21 to 64.

Fraud and Misrepresentation - Topic 2516

Misrepresentation - General principles - Contracts - See paragraphs 21 to 64.

Fraud and Misrepresentation - Topic 2707

Misrepresentation - What constitutes misrepresentation - Falsity by silence - See paragraphs 21 to 64.

Fraud and Misrepresentation - Topic 2750

Misrepresentation - Negligent advice - Inducing contractual relations - See paragraphs 21 to 64.

Fraud and Misrepresentation - Topic 2824

Misrepresentation - Defences - Agreement excluding liability - See paragraphs 21 to 64.

Fraud and Misrepresentation - Topic 2829

Misrepresentation - Defences - Contributory negligence - See paragraphs 21 to 64.

Interest - Topic 3068

Statutory interest - Interest Act - Mortgages - Prohibition of payment of fine or penalty on arrears of principal or interest - See paragraphs 10 to 17.

Restitution - Topic 62

Unjust enrichment - General - What constitutes - See paragraphs 87 to 91.

Restitution - Topic 63

Unjust enrichment - General - Requirement of enrichment at plaintiff's expense - See paragraphs 87 to 91.

Cases Noticed:

Lucke et al. v. Pacific Traffic Markers Ltd. et al. (1967), 62 W.W.R.(N.S.) 511 (B.C.S.C.), refd to. [para. 9].

Langley Lo-Cost Builders Ltd. v. 474835 B.C. Ltd. et al. (2000), 140 B.C.A.C. 182; 229 W.A.C. 182; 76 B.C.L.R.(3d) 278 (C.A.), refd to. [para. 11].

Raintree Financial Ltd. v. Bell (1993), 82 B.C.L.R.(2d) 28 (S.C.), refd to. [para. 11].

T.D. Trust Co. v. Guinness (1995), 12 B.C.L.R.(3d) 102 (S.C.), refd to. [para. 11].

Citizens Bank of Canada v. Babich et al., [2000] B.C.T.C. 415 (S.C. Master), refd to. [para. 13].

Sung v. Chow et al., [1997] B.C.T.C. Uned. 568 (S.C.), refd to. [para. 13].

Bowen v. O'Brian Financial Corp. (1991), 6 B.C.A.C. 243; 13 W.A.C. 243; 62 B.C.L.R.(2d) 328; 86 D.L.R.(4th) 169 (C.A.), refd to. [para. 15].

Litwin Construction (1973) Ltd. v. Kiss (1988), 29 B.C.L.R.(2d) 88 (C.A.), refd to. [para. 15].

Martel Building Ltd. v. Canada, [2000] 2 S.C.R. 860; 262 N.R. 285, refd to. [para. 22].

Anns v. Merton London Borough Council, [1978] A.C. 728; [1977] 2 W.L.R. 1024; [1977] 2 All E.R. 492 (H.L.), refd to. [para. 22].

Andronyk v. Williams, [1986] 1 W.W.R. 225; 36 Man.R.(2d) 161 (C.A.), refd to. [para. 23].

Topnotch Developments Ltd. v. Welldone Ventures Canada Inc., [1991] B.C.J. No. 3407 (S.C.), refd to. [para. 23].

Scott v. Hanson (1829), 1 Russ. & M. 128; 39 E.R. 49 (L.C.), refd to. [para. 23].

Kingu v. Walmar Ventures Ltd. (1986), 10 B.C.L.R.(2d) 15 (C.A.), refd to. [para. 24].

Queen (D.J.) v. Cognos Inc., [1993] 1 S.C.R. 87; 147 N.R. 169; 60 O.A.C. 1; 99 D.L.R.(4th) 626; 45 C.C.E.L. 153; 14 C.C.L.T.(2d) 113, refd to. [para. 25].

Derry v. Peek (1889), 14 App. Cas. 337 (H.L.), refd to. [para. 27].

De Vall v. Gorman, Glancy & Grindley Ltd. (1919), 58 S.C.R. 215, refd to. [para. 28].

Nesbitt Thomson & Co. v. Piggott, [1941] S.C.R. 520, refd to. [para. 28].

Rous v. Mitchell, [1991] 1 All E.R. 676 (C.A.), refd to. [para. 28].

C.R.F. Holdings Ltd. et al. v. Fundy Chemical International Ltd. et al. (1981), 33 B.C.L.R. 291 (C.A.), refd to. [para. 29].

Sidhu Estate v. Bains et al. (1996), 77 B.C.A.C. 116; 126 W.A.C. 116; 25 B.C.L.R.(3d) 41 (C.A.), refd to. [para. 30].

Opron Construction Co. v. Alberta (1994), 151 A.R. 241 (Q.B.), refd to. [para. 32].

Davies v. London and Provincial Marine Insurance Co. (1878), 8 Ch. D. 469, refd to. [para. 32].

Keith Plumbing & Heating Co. et al. v. Newport City Club Ltd. (2000), 135 B.C.A.C. 59; 221 W.A.C. 59; 3 B.L.R.(3d) 53 (C.A.), refd to. [para. 33].

Lakex Mines Ltd. et al. v. Marathon Realty Co. (1980), 24 B.C.L.R. 333 (S.C.), refd to. [para. 34].

United Services Funds (Trustees of) v. Richardson Greenshields of Canada Ltd. (1988), 22 B.C.L.R.(2d) 322 (S.C.), refd to. [para. 35].

Refco Futures (Canada)-Refco, Valeurs Mobil Ieres (Canada) ltée v. SYB Holdings Corp. et al., [2001] B.C.T.C. 1037 (S.C.), refd to. [para. 35].

Salomon v. Salomon & Co., [1897] A.C. 22 (H.L.), refd to. [para. 67].

442246 B.C. Ltd. et al. v. 0909 Management Inc. et al. (1999), 7 B.C.T.C. 44 (S.C.), refd to. [para. 67].

Gallen et al. v. Butterley et al. (1984), 53 B.C.L.R. 38 (C.A.), refd to. [para. 71].

Rathwell v. Rathwell, [1978] 2 S.C.R. 436; 19 N.R. 91; 83 D.L.R.(3d) 289; [1978] 2 W.W.R. 101; 1 E.T.R. 307; 1 R.F.L.(2d) 1, refd to. [para. 89].

Clarkson v. McCrossen Estate et al. (1995), 57 B.C.A.C. 101; 94 W.A.C. 101; 3 B.C.L.R.(3d) 80 (C.A.), refd to. [para. 89].

Ellingsen (Bankrupt), Re (2000), 142 B.C.A.C. 26; 233 W.A.C. 26; 190 D.L.R.(4th) 47 (C.A.), refd to. [para. 90].

KPMG (Trustee in Bankruptcy of Ellingsen) v. Hallmark Ford Sales Ltd. - see Ellingsen (Bankrupt), Re.

Zelmer et al. v. Victor Projects Ltd. et al. (1997), 90 B.C.A.C. 302; 147 W.A.C. 302; 34 B.C.L.R.(3d) 125 (C.A.), refd to. [para. 93].

Amalgamated Investment & Property Co. v. Texas Commerce International Bank Ltd., [1981] 3 All E.R. 577 (C.A.), refd to. [para. 93].

Montreal Trust Co. of Canada v. Dahl, [1992] 3 W.W.R. 84; 99 Sask.R. 182 (Q.B.), refd to. [para. 94].

Schluessel et al. v. Maier et al., [2001] B.C.T.C. 60; 85 B.C.L.R.(3d) 239 (S.C.), refd to. [para. 95].

Fuchs et al. v. Dunlop et al. (1977), 3 B.C.L.R. 180 (S.C.), refd to. [para. 97].

Brandsgard v. Petersen et al., [1997] B.C.T.C. Uned. 724 (S.C.), refd to. [para. 98].

Statutes Noticed:

Interest Act, R.S.C. 1985, c. I-15, sect. 8 [para. 10].

Authors and Works Noticed:

Hoyano, Laura C.H., Lies, Recklessness and Deception: Disentangling Dishonesty in Civil Fraud (1996), 75 Can. Bar Rev. 474, p. 479 [para. 28].

Counsel:

D.W. Donohoe, for Endeavour Developments Ltd. and Midtown Development Co. (1981) Ltd.;

S.S. Shook, Q.C., and P.M. Thompson, for Pacific Playground Holdings Ltd., P. Axel Robert Nissen and Watutco Enterprises Ltd.

This case was heard at Campbell River, British Columbia, on June 8 and 11-15, 2001 and at Courtenay, British Columbia, on June 18 and 19, 2001 and then again at Campbell River, British Columbia, on October 1-5 and 9-12 and November 29 and 30, 2001, before A.F. Wilson, J., of the British Columbia Supreme Court, who delivered the following decision on January 31, 2002.

Please note: The following judgment has not been edited.