Taylor and Schiffner v. Gill, (1991) 113 A.R. 38 (QB)

• Judge: Deyell, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: February 14, 1991
• Citations: (1991), 113 A.R. 38 (QB)

Taylor v. Gill (1991), 113 A.R. 38 (QB)

MLB headnote and full text

Eugene Taylor and Lynda Schiffner (plaintiffs) v. Rajinder Gill and Rupinder Gill (defendants)

(Action No. 9001-08677)

Indexed As: Taylor and Schiffner v. Gill

Alberta Court of Queen's Bench

Judicial District of Calgary

Deyell, J.

February 14, 1991.

Summary:

The vendors brought an action for damages against the purchasers for breach of a contract for the sale of real property. The vendors claimed damages for, inter alia, mental distress.

The Alberta Court of Queen's Bench allowed the action and awarded damages for, inter alia, mental distress.

Damages - Topic 5701

Contracts - Breach of contract - Primary rule - The Alberta Court of Queen's Bench stated that "the purpose of awarding damages in an action in contract is to place the innocent party in the position that the party would have been in had the contract been properly completed" - See paragraph 29.

Damages - Topic 5703

Contracts - Breach of contract - Damages in reasonable contemplation of parties - The Alberta Court of Queen's Bench stated that "as a general rule the damages available to the plaintiffs [for breach of contract] would be those damages that are in the reasonable contemplation of the parties at the time the contract was executed ... The test is one of foreseeability and causation" - See paragraph 31.

Damages - Topic 5706

Contracts - Breach of contract - Injured feelings or emotional upset - A vendor suffered mental distress resulting from the purchasers' breach of a contract for the sale of real property - The Alberta Court of Queen's Bench noted the court's historical reluctance to award damages for mental distress in breach of contract cases, but stated that damages were available in cases where mental distress was in the reasonable contemplation of the parties - The court stated that damages were not precluded merely because there was no independently actionable wrong - The vendor suffered more than mere anxiety or frustration - There were physical manifestations - The court awarded $7,500 general damages for mental distress - See paragraphs 39 to 55.

Damages - Topic 6151

Contracts - Sale of land - Breach by buyer - Measure of damages - Purchasers breached a contract for the sale of a Calgary property - The vendors relied on the contract and bound themselves to purchase other property - The purchasers incurred increased legal costs and obtained bridge financing pending the sale of the Calgary property to another purchaser at a reduced price - The Alberta Court of Queen's Bench awarded damages equal to the sale price differential, the real estate commission on the aborted sale, their solicitor's fees and disbursements, the costs related to the bridge financing, a late closing penalty on the other property and the carrying costs of the Calgary property pending the resale (taxes, insurance, etc.).

Sale of Land - Topic 7672

Remedies of vendor - Damages - Measure of - General - [See Damages - Topic 6151].

Sale of Land - Topic 7672

Remedies of vendor - Damages - Measure of - Mental distress - [See Damages - Topic 5706].

Sale of Land - Topic 7672

Remedies of vendor - Damages - Measure of - Legal fees - The Alberta Court of Queen's Bench stated that "a vendor is entitled to the recovery of reasonable legal fees expended on a contract for the purchase and sale of real estate which is subsequently aborted by the proposed purchaser in breach of his contractual obligations" - See paragraph 35.

Sale of Land - Topic 7684

Remedies of vendor - Damages - Forfeiture of deposit - Effect of - A standard real estate purchase contract provided that if the purchaser breached the contract "the deposit shall be subsequently forfeited on account of liquidated damages and the vendor may also take such other remedies against the purchaser as the vendor has at law" - The Alberta Court of Queen's Bench stated that the agreement and intention of the parties entitled the vendor to retain the deposit and also sue for damages for breach of contract - See paragraph 32.

Cases Noticed:

Dobson v. Winten, [1959] S.C.R. 775, refd to. [para. 27].

Robinson v. Harman (1848), 1 Exch. 850, refd to. [para. 29].

Wertheim v. Chicoutimi Pulp Co., [1911] A.C. 301 (P.C.), refd to. [para. 29].

Albacruz (Cargo Owners) v. Albazero, [1977] A.C. 774 (H.L.), refd to. [para. 29].

Highway Properties Ltd. v. Kelly, Douglas and Co., [1971] S.C.R. 562, refd to. [para. 30].

Bernard v. Weiss (1983), 31 R.P.R. 185, refd to. [para. 31].

Cuttell v. Bentz (1986), 70 B.C.L.R. 85 (B.C.S.C.), refd to. [para. 31].

Lozcal Holdings Ltd. v. Brassos Developments Ltd. (1980), 22 A.R. 131; 15 R.P.R. 8 (C.A.), refd to. [para. 32].

Wimpey (George) Canada Ltd. v. Groveridge Imperial Properties Ltd. (1985), 64 A.R. 174; 40 Alta. L.R.(2d) 339 (Q.B.), refd to. [para. 32].

McCulloch v. Gazelle (1980), 14 Alta. L.R.(2d) 193 (Q.B.), refd to. [para. 32].

LeMesurier v. Andrus (1984), 31 R.P.R. 143, refd to. [para. 35].

Anastasio v. Cutruzzola (1984), 33 R.P.R. 56, refd to. [para. 35].

Shuper v. Noble (1982), 38 O.R.(2d) 64 (Co. Ct.), refd to. [para. 35].

Bloomberg v. Tricont (1980), 13 R.P.R. 284 (Ont. S.C.), refd to. [para. 36].

Davies v. Russell, [1971] 2 O.R. 699 (H.C.), refd to. [para. 36].

Rose v. Edell (1986), 57 O.R.(2d) 89 (Dist. Ct.), refd to. [para. 36].

Addis v. Gramophone Co., [1909] A.C. 488 (H.L.), consd. [para. 40].

Kolan v. Solicitor, [1970] 1 O.R. 41, affd. [1970] 2 O.R. 686 (C.A.), refd to. [para. 40].

Hamlin v. G.N. Ry (1856), 1 H. & N. 408, refd to. [para. 40].

Hobbs v. L.S.W. Ry (1875), L.R. 10 Q.B. 111, refd to. [para. 40].

Groom v. Crocker, [1939] 1 K.B. 194 (C.A.), refd to. [para. 40].

Bailey v. Bullock, [1950] 2 All E.R. 1167 (K.B.), refd to. [para. 40].

Jarvis v. Swans Tours Ltd., [1973] 1 All E.R. 71 (C.A.), consd. [para. 42].

Newell v. C.P. Airlines Ltd. (1976), 14 O.R.(2d) 752 (Co. Ct.), refd to. [para. 44].

Brown v. Waterloo Reg. Bd. of Commrs. of Police (1983), 43 O.R.(2d) 113 (C.A.), refd to. [para. 44].

Smith v. Fearon (1988), 87 N.S.R.(2d) 119; 222 A.P.R. 119 (T.D.), refd to. [para. 45].

Vorvis v. Insurance Corporation of British Columbia, [1989] 1 S.C.R. 1085; 94 N.R. 321, consd. [para. 50].

Keks v. Esquire Pleasure Tours Ltd., [1974] 3 W.W.R. 406 (Man. Co. Ct.), refd to. [para. 52].

Jackson v. Horizon Holidays Ltd., [1975] 3 All E.R. 92 (C.A.), refd to. [para. 52].

Pitzel v. Saskatchewan Motor Club Travel Agency Ltd. et al. (1983), 26 Sask.R. 96; 149 D.L.R.(2d) 122 (Q.B.), refd to. [para. 52].

Heywood v. Wellers, [1976] 1 All E.R. 300 (C.A.), refd to. [para. 52].

Zucker v. Paul (1982), 37 O.R.(2d) 161, leave to appeal refused (1982), 38 O.R.(2d) 220, refd to. [para. 52].

Perry v. Sidney Phillips & Son, [1982] 3 All E.R. 705 (C.A.), refd to. [para. 52].

Cox v. Phillips Indust. Ltd., [1976] 1 W.L.R. 638 (Q.B.), refd to. [para. 52].

Pilon v. Peugeot Canada (1980), 29 O.R.(2d) 711 (H.C.), refd to. [para. 52].

Speck v. Greater Niagara Gen. Hospital (1983), 43 O.R.(2d) 611 (H.C.), refd to. [para. 52].

McOnie v. River Pub Ltd. (1987), 79 N.S.R.(2d) 379; 196 A.P.R. 379 (T.D.), refd to. [para. 52].

Diesen v. Samson, [1971] S.L.T. 49 (Sheriff Ct.), refd to. [para. 52].

Turner v. Jatko (1978), 93 D.L.R.(3d) 314 (B.C.Co.Ct.), refd to. [para. 53].

Marko v. Perry, [1980] 3 W.W.R. 565 (B.C.Co.Ct.), refd to. [para. 53].

Widdrington v. Dickinson (1982), 133 D.L.R.(3d) 472 (H.C.), refd to. [para. 53].

Authors and Works Noticed:

Fridman, G.H.L., The Law of Contract in Canada (2nd Ed. 1986), p. 676 [para. 41].

McGregor on Damages (15th Ed. 1988), p. 54 [para. 42].

Pitch, H.D., and R.M. Snyder, Damages for Breach of Contract (2nd Ed. 1989), p. 4-3ff [para. 51].

Sustrik, G., Highway Properties - Look Both Ways Before Crossing (1986), 24 Alta. L. Rev. 477, generally [para. 30].

Counsel:

S.M.E. Kurtz (Dworkin Heumann), for the plaintiffs;

Rajinder and Rupinder Gill on their own behalf.

This action was heard before Deyell, J., of the Alberta Court of Queen's Bench, Judicial District of Calgary, who delivered the following judgment on February 14, 1991.