Queng Construction Inc. v. Canada, (1986) 2 F.T.R. 225 (TD)

• Judge: Teitelbaum, J.
• Court: Federal Court (Canada)
• Case Date: December 11, 1985
• Jurisdiction: Canada (Federal)
• Citations: (1986), 2 F.T.R. 225 (TD)

Queng Constr. Inc. v. Can. (1986), 2 F.T.R. 225 (TD)

MLB headnote and full text

Queng Construction Inc. v. Canada

(No. T-2866-84)

Indexed As: Queng Construction Inc. v. Canada

Federal Court of Canada

Trial Division

Teitelbaum, J.

April 11, 1986.

Summary:

A construction company did "extras" under a federal government contract. The company brought an action claiming interest on the late payment of monies owing for the extras and interest on the 5% holdback for the 10 month period for which payment was delayed pending completion of the extras.

The Federal Court of Canada, Trial Division, dismissed the action. The court held that normally the company might be entitled to interest, but an agreement between the parties as to what the government owed (which did not include interest) constituted a "transaction" under art. 1918 of the Quebec Civil Code, thereby precluding the claim for interest.

Quebec Nominate Contracts - Topic 9002

Transaction - What constitutes - A company did extra work under a contract and claimed interest on the late payment of the monies for the extra work and for the delay in getting the 5% holdback - The parties agreed on the sum owing for the extras - The Federal Court of Canada, Trial Division, held that the agreement constituted a "transaction" within the meaning of art. 1918 of the Quebec Civil Code, which was a contract preventing future litigation by means of concessions or reservations - Therefore, the court held that the company's claim for interest was precluded.

Statutes Noticed:

Quebec Civil Code, art. 1918 [para. 49].

Counsel:

Pierre Sicotte, for the plaintiff;

Claude Ruelland, Q.C., and Andre Bluteau, for the defendant.

Solicitors of Record:

Guy, Gilbert, Montreal, Quebec, for the plaintiff;

Frank Iacobucci, Q.C., Deputy Attorney General of Canada, Ottawa, Ontario, for the defendant.

This action was heard on December 11, 1985, at Montreal, Quebec, before Teitelbaum, J., of the Federal Court of Canada, Trial Division, who delivered the following judgment on April 11, 1986.