Redpath Industries Ltd. v. Ship Cisco et al., (1993) 163 N.R. 161 (FCA)

JudgeDesjardins, Décary and Létourneau, JJ.A.
CourtFederal Court of Appeal (Canada)
Case DateOctober 25, 1993
JurisdictionCanada (Federal)
Citations(1993), 163 N.R. 161 (FCA)

Redpath Ind. Ltd. v. Ship Cisco (1993), 163 N.R. 161 (FCA)

MLB headnote and full text

The Ship "Cisco" and Kim-Crest, S.A. (appellants) v. Redpath Industries Limited (respondent)

(A-916-92)

Indexed As: Redpath Industries Ltd. v. Ship Cisco et al.

Federal Court of Appeal

Desjardins, Décary and Létourneau, JJ.A.

December 20, 1993.

Summary:

Kim-Crest S.A. carried the plaintiff's (Redpath Industries') cargo of raw bulk sugar on its vessel the "Cisco" from Guyana to Toronto. The plaintiff sued for damages for loss of a portion of the cargo.

The Federal Court of Canada, Trial Divi­sion, in a decision reported 55 F.T.R. 278, allowed the action and assessed damages accordingly. Kim-Crest S.A. and the Ship appealed and Redpath Industries cross-appealed. In issue was the measure of dam­ages.

The Federal Court of Appeal allowed the appeal in part and dismissed the cross-appeal.

Shipping and Navigation - Topic 2213

Carriage of goods - Damages - Damage to cargo - Kim-Crest carried the plaintiff's cargo of raw bulk sugar on its vessel - Part of the cargo arrived in a damaged condition - Under an arrangement with the insurers, the plaintiff purchased the sugar for 50% of its market value and was even­tually able to process the damaged sugar - The plaintiff sued the carrier and the vessel for damages - The Federal Court of Appeal calculated of damages accordingly - The court discussed the applicable test (i.e., the Arrived Sound Market Value (A.S.M.V.) less Arrived Damaged Market Value (A.D.M.V.)), how the duty to miti­gate damages figured into the equation and in particular the duty to mitigate where goods arrive damaged, but are still of some use.

Cases Noticed:

Amstar Corp. v. M/V Alexandros T, [1979] A.M.C. 1975 (Maryland), refd to. [paras. 2, 62, footnote 1].

Redpath Industries Ltd. et al. v. Fednav Ltd. et al. (1993), 63 F.T.R. 131 (T.D.), refd to. [paras. 10, 64].

British Westinghouse Co. v. Underground Railway, [1912] A.C. 673; (1912) H.L.(E.) 678 (H.L.), refd to. [paras. 16, 24, 70, 80].

Cockburn v. Trusts and Guarantee Co. (1917), 55 S.C.R. 264, refd to. [paras. 16, 70, 80].

Karas v. Rowlett, [1944] S.C.R. 1, refd to. [para. 16].

Michaels et al. v. Red Deer College, [1976] 2 S.C.R. 324; 5 N.R. 99; 57 D.L.R.(3d) 386, refd to. [paras. 16, 45, 70, footnote 3].

Baud Corp. N.V. v. Brook, [1979] 1 S.C.R. 633; 23 N.R. 181; 12 A.R. 271; [1978] 6 W.W.R. 301; 89 D.L.R.(3d) 1, refd to. [paras. 16, 70, 72].

Asamera Oil Corp. Ltd. v. Sea Oil General Corp. - see Baud Corp. N.V. v. Brook.

Goldco Imports Ltd. v. Ship Meitoku Maru, [1966] Ex. C.R. 498 (Ex. Ct.), refd to. [paras. 17, 23, footnote 6].

Amjay Cordage Ltd. v. Ship Margarita (1979), 28 N.R. 265 (F.C.A.), refd to. [paras. 17, 23, footnote 6].

Rodocanachi v. Milburn (1886), 6 Asp. M.L.C. 100 (C.A.), refd to. [paras. 23, 79].

Ship Arpad, Re, [1934] All E.R. Rep. 326; 49 Ll. L. Rep. 313 (C.A.), refd to. [para. 23].

Obestain Inc. v. National Mineral De­velopment Corp. (The Sanix Ace), [1987] 1 Lloyd's Rep. 465 (Q.B.), refd to. [para. 23].

Ship Trade Wind v. McNair (David) & Co., [1956] Ex. C.R. 228, affing. [1954] Ex. C.R. 450, refd to. [para. 23].

Hussey v. Eels, [1990] 1 All E.R. 449 (C.A.), refd to. [paras. 24, 71].

Wood v. Grand Valley Railway Co. (1915), 51 S.C.R. 283, refd to. [paras. 27, 44].

Penvidic Contracting Co. v. International Nickel Co. of Canada Ltd., [1976] 1 S.C.R. 267; 4 N.R. 1, refd to. [paras. 27, 44].

Canadian Pacific Ltd. v. McCain Produce Co. et al. (1980), 30 N.B.R.(2d) 476; 70 A.P.R. 476 (C.A.), affd., [1981] 2 S.C.R. 219; 38 N.R. 534; 35 N.B.R.(2d) 511; 88 A.P.R. 511, refd to. [para. 27].

Banner Homes Ltd. v. Mitchell (1979), 27 N.B.R.(2d) 486; 60 A.P.R. 486 (C.A.), refd to. [para. 27].

Messer v. Clark (J.) & Sons Ltd. (1961), 27 D.L.R.(2d) 766 (N.B.C.A.), refd to. [para. 27].

Abraham v. Wingate Properties Ltd., [1986] 1 W.W.R. 56; 36 Man.R.(2d) 264 (C.A.), refd to. [para. 27].

Algoma Central Railway v. Ship Cielo Bianco et al., [1987] 2 F.C. 592; 73 N.R. 321 (F.C.A.), refd to. [para. 29].

Antares Shipping Corp. v. Ship Capricorn et al., [1980] 1 S.C.R. 553; 30 N.R. 104; 111 D.L.R.(3d) 289, refd to. [para. 33, footnote 1].

Andros Springs (Owners) v. World Beauty (Owners), [1969] 3 All E.R. 158 (C.A.), refd to. [para. 45, footnote 3].

100 Main Street Ltd. v. Sullivan (W.B.) Construction Ltd. (1978), 88 D.L.R.(3d) 1 (Ont. C.A.), refd to. [para. 45].

Keneric Tractor Sales Ltd. v. Langille, [1987] 2 S.C.R. 440; 79 N.R. 241; 82 N.S.R.(2d) 361; 207 A.P.R. 361, refd to. [para. 75].

Indiana Farm Bur. v. Sovereign Faylenne, [1978] A.M.C. 1514, refd to. [para. 79].

Erie County Natural Gas and Fuel Co. v. Carroll, [1911] A.C. 105 (P.C.), refd to. [para. 84].

Authors and Works Noticed:

Braën, Le droit maritime au Québec (1992), pp. 110 to 113 [para. 33, foot­note 1].

Burrows, A.S., Remedies for Torts and Breach of Contract (1987), pp. 64 [para. 73]; 67 [para. 82].

Fleming, John G., The Law of Torts (7th Ed. 1987), p. 227 [para. 82].

McGregor on Damages (15th Ed. 1988), pp. 323 to 325 [para. 82].

Tetley, William, Marine Cargo Claims (3rd Ed. 1988), pp. 323 to 324, 355 [para. 14, footnote 5].

Waddams, S.M., The Law of Damages (2nd Ed. 1992), No. 13,100 [para. 45].

Waddams, S.M., The Law of Contracts (3rd Ed. 1993), p. 514 [para. 34, footnote 2].

Counsel:

V. De Marco and D.G. Colford, for the appellants;

V.M. Prayer and M.A. Tabib, for the re­spondent.

Solicitors of Record:

Brissett, Bishop, Montreal, Quebec, for the appellants;

Stikeman, Elliott, Montreal, Quebec, for the respondent.

This appeal was heard in Montreal, Que­bec, on October 25, 1993, before Desjardins, Décary and Létourneau, JJ.A., of the Federal Court of Appeal. The decision of the court was delivered in Ottawa, Ontario, on De­cember 20, 1993, including the following opinions:

Desjardins, J.A. - see paragraphs 1 to 31;

Décary, J.A., concurring - see para­graphs 32 to 56;

Létourneau, J.A., concurring - see para­graphs 57 to 89.

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