Shamac Country Inns Ltd. v. Sandy's Oilfield Hauling Ltd. et al., 2015 ABQB 518

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: July 07, 2015
• Citations: 2015 ABQB 518;[2015] A.R. TBEd. AU.111

Shamac Country Inns v. Sandy's Oilfield, [2015] A.R. TBEd. AU.111

MLB being edited

Currently being edited for A.R. - judgment temporarily in rough form.

Temp. Cite: [2015] A.R. TBEd. AU.111

Shamac Country Inns Ltd. (plaintiff/applicant) v. Sandy's Oilfield Hauling Ltd., 251478 Alberta Ltd., Jolane Transport Ltd. and Leroy James Linkivic (defendants/respondents)

(1103 14367; 2015 ABQB 518)

Indexed As: Shamac Country Inns Ltd. v. Sandy's Oilfield Hauling Ltd. et al.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Wacowich, Master

August 17, 2015.

Summary:

On January 18, 2010, a fire occurred at the Fort Hotel in Fort Saskatchewan. At that time, the plaintiff, Shamac Country Inns Ltd. (Shamac), owned and operated the Fort Hotel. Shamac's insurers brought a subrogated claim to recover the money paid to Shamac as a result of the fire. The plaintiff and the defendants, Sandy's Oilfield Hauling Ltd (Sandy's), 251487 Alberta Ltd (251), and Jolane Transport Ltd (Jolane) (collectively, the corporate defendants) were related companies and, together with other corporate entities, comprised the MacDonald Group of Companies (MacDonald Group). Elaine MacDonald was the sole director and direct and indirect owner of the plaintiff. She was also the sole or majority owner of the corporate defendants. The plaintiff alleged that the defendant Linkivic negligently started the fire. The parties agreed that, prior to the fire, Linkivic was using a propane torch to thaw ice that had built up in a drain pipe at the hotel. The plaintiff further alleged that the corporate defendants were vicariously liable for Linkivic's alleged negligence. The defendants applied for summary judgment under rule 7.3 of the Alberta Rules of Court. The plaintiff cross-applied for summary judgment under the same rule.

A Master of the Alberta Court of Queen's Bench granted the defendants' application and dismissed the plaintiff's cross-application. The court held that Shamac and the corporate defendants were Linkivic's common employer at the time of the fire. At that time, the various entities comprising the MacDonald Group were related and controlled by the same person. Linkivic spent much of his working time doing maintenance for the plaintiff. Further, Linkivic was an "unskilled" worker, which meant that liability against him would only lie if he started the fire intentionally or recklessly. Evidence to this effect had not been adduced. Given the current jurisprudence on an employer's ability to sue its own employee in negligence, the plaintiff's claim against Linkivic could not succeed. Consequently, the vicarious liability claim against the corporate defendants could not succeed.

Insurance - Topic 2886

Subrogation - Insurer limited to rights of insured - See paragraphs 1 to 78.

Master and Servant - Topic 303

Nature of relationship - What constitutes an employer-employee relationship - See paragraphs 38 to 57.

Master and Servant - Topic 1024

Contract of hiring (employment contract) - Parties - Employer - What constitutes - See paragraphs 38 to 57.

Master and Servant - Topic 4524

Liabilities of servant - To master - Respecting master's property - See paragraphs 68 to 73.

Practice - Topic 5702

Judgments and orders - Summary judgments - Jurisdiction or when available or when appropriate - See paragraphs 1 to 78.

Torts - Topic 38

Negligence - Standard of care - Particular persons and relationships - Employers (master and servant) - See paragraphs 68 to 73.

Counsel:

Sandra Weber (McLennan Ross LLP), for the plaintiff/applicant;

Ronald R. Nelson ( Brownlee LLP), for the defendants/respondents.

These summary judgment applications were heard on July 7, 2015, by Wacowich, Master, of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following decision on August 17, 2015.