Renaissance Resources Ltd. v. Metalore Resources Ltd., (1984) 53 A.R. 289 (QB)

JudgeKidd, J.
CourtCourt of Queen's Bench of Alberta (Canada)
Case DateMay 01, 1984
Citations(1984), 53 A.R. 289 (QB)

Renaissance Resources Ltd. v. Metalore (1984), 53 A.R. 289 (QB)

MLB headnote and full text

Renaissance Resources Ltd. v. Metalore Resources Ltd.

(No. 8101-22596)

Indexed As: Renaissance Resources Ltd. v. Metalore Resources Ltd.

Alberta Court of Queen's Bench

Judicial District of Calgary

Kidd, J.

May 1, 1984.

Summary:

A contract between the plaintiff and defendant called for the defendant to pay 30% of the costs of drilling a test well, estimated at $637,250. The test well was unsuccessful and the actual cost of drilling was approximately $1.5 million. The plaintiff brought an action against the defendant to recover 30% of the cost overrun. The defendant maintained, inter alia, that its limit of liability was orally agreed to be $225,000.

The Alberta Court of Queen's Bench allowed the action, but refused to award the plaintiff prejudgment interest where it was not fair and equitable to do so.

Contracts - Topic 1308

Formation of contract - Acceptance - Mode of acceptance - The Alberta Court of Queen's Bench stated that where an offer or counter-offer did not specify a mode of acceptance, oral acceptance may be sufficient, even where the offer was in writing - See paragraph 38.

Contracts - Topic 1541

Formation of contract - Duty to disclose - The plaintiff negotiated with the defendant to enter a contract to share the costs of drilling a test well - The plaintiff made representations on the estimated costs and chances of success - The Alberta Court of Queen's Bench stated that if the circumstances on which the representations were based changed before the contract was entered into and were within the plaintiff's knowledge, the plaintiff had a duty to disclose the changes to the defendant - See paragraphs 28 to 38.

Evidence - Topic 3201

Documentary evidence - Admission - General - The defendant in an action for a debt consented to the admission of certain documents to prove the amount of the debt - The Alberta Court of Queen's Bench held that once the documents were admitted they stood as prima facie proof of the facts stated therein, but that the defendant could challenge the accuracy of the contents of the documents - See paragraph 49.

Evidence - Topic 6204

Parole evidence rule - Evidence offered to contradict or explain written agreement - A contract between the plaintiff and defendant called for the defendant to pay 30% of the costs of drilling a test well, but provided for no limit of liability - The defendant maintained that the plaintiff orally agreed to a $225,000 limit while they were negotiating the contract - The Alberta Court of Queen's Bench held that no limit was proved, because oral discussions prior to the written contract were not admissible to add to, vary or contradict the unambiguous provisions of the written contract - See paragraphs 24-25.

Interest - Topic 5303

Interest as damages - Interest on payment of money or debt withheld - Amount due under a contract - The plaintiff sued the defendant for monies allegedly owing under a contract - The Alberta Court of Queen's Bench held that the monies were owing, but refused to award the plaintiff prejudgment interest on the monies withheld, because the awarding of interest was not fair and equitable where the defendant's claim that the monies were not owing was genuine, and was not an attempt to prejudice or pressure the plaintiff - See paragraphs 52 to 56.

Cases Noticed:

With v. O'Flanagan, [1965] 1 All E.R. 727, refd to. [para. 29].

Davies v. London and Provincial Marine Insurance Co. (1878), 1 Ch. D. 469, refd to. [para. 29].

Jen-Den Investments Ltd. v. Northwest Farms Ltd. et al. (1977), 81 D.L.R.(3d) 355 (Man. C.A.), refd to. [para. 38].

M & T, Incorporated et al. v. Fuel Resources Development Company (1981), 518 F. Supp. 285, consd. [para. 44].

Ares v. Venner (1970), 14 D.L.R.(3d) 4 (S.C.C.), appld. [para. 49].

Omand v. Alberta Milling Co., 69 D.L.R. 6 (Alta. C.A.), refd to. [para. 49].

Eyben v. K.R. Ranches (1970) Ltd., [1982] 5 W.W.R. 269; 38 A.R. 336 (Alta. C.A.), appld. [para. 54].

Granpac Limited v. American Home Assurance Company (1982), 33 A.R. 212; 17 Alta. L.R.(2d) 71 (Alta. C.A.), refd to. [para. 54].

Authors and Works Noticed:

Boyer, R.M., The 1981 CAPL Operating Procedure, 21 Alta. L.R. 82, p. 86 [para. 46].

Chitty on Contracts (25th Ed.), p. 26 [para. 24].

Counsel:

J.D. Rooke, for the plaintiff (defendant by counterclaim);

B.B. Tait, for the defendant (plaintiff by counterclaim).

This action was heard before Kidd, J., of the Alberta Court of Queen's Bench, Judicial District of Calgary, who delivered the following judgment on May 1, 1984:

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7 practice notes
  • Powermax Energy Inc. v. Argonauts Group Ltd., (2003) 334 A.R. 1 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • September 6, 2002
    ...Co. et al. (1997), 198 A.R. 81 (Q.B.), refd to. [para. 92]. Renaissance Resources Ltd. v. Metalore Resources Ltd., [1984] 4 W.W.R. 430; 53 A.R. 289 (Q.B.), affd. [1985] 4 W.W.R. 673 (C.A.), refd to. [para. Passburg Petroleums Ltd. v. San Antonio Exploration Ltd., [1988] 2 W.W.R. 645 (Alta. ......
  • Erehwon Exploration Ltd. v. Northstar Energy Corp., (1993) 147 A.R. 1 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • November 24, 1993
    ...affd. 13 N.R. 127; 2 A.R. 183; 50 D.L.R.(3d) 158 (S.C.C.), refd to. [para. 64]. Renaissance Resources Ltd. v. Metalore Resources Ltd. (1984), 53 A.R. 289 (Alta. Q.B.), affd. 38 Alta. L.R.(2d) 133 (C.A.), refd to. [para. 82]. Passburg Petroleums Ltd. v. San Antonio Explorations Ltd. et al. (......
  • Freyberg v. Fletcher Challenge Oil and Gas Inc. et al., 2007 ABQB 353
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • January 22, 2007
    ...307; 176 D.L.R.(4th) 309; 1999 ABCA 231, refd to. [para. 177]. Renaissance Resources Ltd. v. Metalore Resources Ltd., [1984] 4 W.W.R. 430; 53 A.R. 289 (Q.B.), refd to. [para. Bank of America Canada v. Mutual Trust Co. et al., [2002] 2 S.C.R. 601; 287 N.R. 171; 159 O.A.C. 1; 2002 SCC 43, dis......
  • Novalta Resources Ltd. v. Ortynsky Exploration Ltd., (1994) 151 A.R. 161 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • March 15, 1994
    ...Cases Noticed: Renaissance Resources Ltd. v. Metalore Resources Ltd., [1985] 4 W.W.R. 673 (Alta. C.A.), affing. [1984] 4 W.W.R. 430 ; 53 A.R. 289 (Q.B.), refd to. [consd. 10 et seq.]. Passburg Petroleums Ltd. v. San Antonio Explorations Ltd., [1988] 2 W.W.R. 645 (Alta. Q.B.), refd to. ......
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7 cases
  • Powermax Energy Inc. v. Argonauts Group Ltd., (2003) 334 A.R. 1 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • September 6, 2002
    ...Co. et al. (1997), 198 A.R. 81 (Q.B.), refd to. [para. 92]. Renaissance Resources Ltd. v. Metalore Resources Ltd., [1984] 4 W.W.R. 430; 53 A.R. 289 (Q.B.), affd. [1985] 4 W.W.R. 673 (C.A.), refd to. [para. Passburg Petroleums Ltd. v. San Antonio Exploration Ltd., [1988] 2 W.W.R. 645 (Alta. ......
  • Erehwon Exploration Ltd. v. Northstar Energy Corp., (1993) 147 A.R. 1 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • November 24, 1993
    ...affd. 13 N.R. 127; 2 A.R. 183; 50 D.L.R.(3d) 158 (S.C.C.), refd to. [para. 64]. Renaissance Resources Ltd. v. Metalore Resources Ltd. (1984), 53 A.R. 289 (Alta. Q.B.), affd. 38 Alta. L.R.(2d) 133 (C.A.), refd to. [para. 82]. Passburg Petroleums Ltd. v. San Antonio Explorations Ltd. et al. (......
  • Freyberg v. Fletcher Challenge Oil and Gas Inc. et al., 2007 ABQB 353
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • January 22, 2007
    ...307; 176 D.L.R.(4th) 309; 1999 ABCA 231, refd to. [para. 177]. Renaissance Resources Ltd. v. Metalore Resources Ltd., [1984] 4 W.W.R. 430; 53 A.R. 289 (Q.B.), refd to. [para. Bank of America Canada v. Mutual Trust Co. et al., [2002] 2 S.C.R. 601; 287 N.R. 171; 159 O.A.C. 1; 2002 SCC 43, dis......
  • Novalta Resources Ltd. v. Ortynsky Exploration Ltd., (1994) 151 A.R. 161 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • March 15, 1994
    ...Cases Noticed: Renaissance Resources Ltd. v. Metalore Resources Ltd., [1985] 4 W.W.R. 673 (Alta. C.A.), affing. [1984] 4 W.W.R. 430 ; 53 A.R. 289 (Q.B.), refd to. [consd. 10 et seq.]. Passburg Petroleums Ltd. v. San Antonio Explorations Ltd., [1988] 2 W.W.R. 645 (Alta. Q.B.), refd to. ......
  • Request a trial to view additional results

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