Vermont Construction Inc. v. Beatson, (1975) 8 N.R. 271 (SCC)

JudgeLaskin, C.J.C., Martland, Judson, Pigeon and de Grandpré, JJ.
CourtSupreme Court (Canada)
Case DateJune 23, 1975
JurisdictionCanada (Federal)
Citations(1975), 8 N.R. 271 (SCC)

Vermont Constr. Inc. v. Beatson (1975), 8 N.R. 271 (SCC)

MLB headnote and full text

Vermont Construction Inc. v. Beatson

Indexed As: Vermont Construction Inc. v. Beatson

Supreme Court of Canada

Laskin, C.J.C., Martland, Judson, Pigeon and de Grandpré, JJ.

December 4, 1975.

Summary:

This case arose out of a claim for damages by a building contractor against an architect. The contractor agreed to build a recreational centre for the City of Pointe-Claire, Quebec. During construction the specifications with respect to the walls of the structure were changed by the architect. The change resulted from an error by the architect in calculating stresses. The contract between the contractor and the City provided for compensation to the contractor for such changes but did not provide for compensation for losses arising out of delays. The contractor claimed $15,383.00 from the City for additional costs due the change order. The City disallowed $11,224.00, being a claim for damages for delays by the architect. The City paid the contractor $4,149.00. The contractor then claimed $11,224.00 from the architect for damages arising out of delays by the architect. The Quebec Superior Court dismissed the contractor's action against the architect.

On appeal to the Quebec Court of Appeal the appeal was dismissed and the judgment of the Quebec Superior Court was affirmed.

On appeal to the Supreme Court of Canada the appeal was dismissed and the judgment of the Quebec Court of Appeal was affirmed. The Supreme Court of Canada stated that losses such as those claimed by the contractor for delays are part of the risks assumed by the contractor in undertaking to perform a building contract - see paragraph 19. The Supreme Court of Canada stated that the contractor's claim for losses for delays was a loss which it agreed that it would not be entitled to recover and that the contractor's claim against the architect cannot be dealt with apart from the contract between the owner and the contractor - see paragraph 21.

de Grandpré, J., dissenting, in the Supreme Court of Canada, would have allowed the appeal and would have allowed the action by the contractor against the architect for $11,224.00 - see paragraphs 24 to 49.

Editor's Note : A portion of this case has been translated and was reported at 8 N.R. 519 - This translation has been attached to the bottom of this case for your convenience.

Building Contracts - Topic 5450

Architects and engineers - Liability of architects to contractors - Liability of architects to contractors for claims covered in the contract between the owner and the contractor - Due to an error by an architect a change order was issued by the architect to the plaintiff contractor respecting the construction of a recreational centre for the City of Pointe-Claire, Quebec - The City paid the contractor for the cost of the changes pursuant to a term in the contract between the City and the contractor - The contractor also claimed against the architect for damages arising out of delays by the architect which damages the contractor was unable to claim pursuant to the contract with the City - The Supreme Court of Canada dismissed the contractor's action against the architect - The Supreme Court of Canada stated that such losses are part of the risks assumed by a contractor in undertaking the performance of a building contract - See paragraph 19 - The Supreme Court of Canada stated that the contractor's claim for losses for delays was a loss which it agreed that it would not be entitled to recover and that the contractor's claim against the architect cannot be dealt with apart from the contract between the owner and the contractor - See paragraph 21.

Cases Noticed:

Ross v. Dunstall (1921), 62 S.C.R. 393, folld. [para. 10].

Bank of Montreal v. Boston Insurance Company, [1963] Q.B. 487, affd. [1964] S.C.R. V, folld. [para. 10].

Dominion Electric Protection Company Limited v. Alliance Assurance Company Limited et al., [1967] Q.B. 767, affd. [1970] S.C.R. 168, folld. [para. 10].

J.G. Fitzpatrick Ltd. v. Brett, [1969] S.C. 144, dist. [para. 14].

Donoghue v. Stevenson, [1932] A.C. 562, refd to. [para. 17].

Nova Scotia Construction v. Quebec Streams Commission, [1933] 2 D.L.R. 593, folld. [para. 19].

Prevert v. Lavigne (1969), J.C.P. No. 15937, refd to. [para. 20].

N.Z. Shipping v. Satterwaite Ltd., [1975] A.C. 154, folld. [para. 21].

London & Lancashire Guarantee & Accident Co. of Canada v. La Compagnie F.X. Drolet, [1944] S.C.R. 82, folld. [para. 22].

Canadian General Electric Company Limited v. Pickford & Black Limited, 2 N.S.R.(2d) 497; [1971] R.C.S. 41, refd to. [para. 28].

Hedley Byrne & Co. Ltd. v. Heller & Partners, Ltd., [1963] 2 All E.R. 575, refd to. [para. 28].

Alliance Assurance Company Limited v. Dominion Electric Protection Company Limited, [1970] R.C.S. 168, folld. [para. 31].

Ross v. Dunstall (1921), 62 R.C.S. 393, folld. [para. 32].

Modern Motor Sales Limited v. Masoud et al., [1953] R.C.S. 419, folld. [para. 32].

Cohen v. Coca-Cola Limited, [1967] R.C.S. 469, folld. [para. 32].

Nova Scotia Construction Company Limited v. Quebec Streams Commission, [1933] R.C.S. 220; [1933] 2 D.L.R. 593, folld. [para. 40].

Canada Steamship Lines v. The King, [1952] A.C. 192, folld. [para. 42].

Statutes Noticed:

Quebec Civil Code, art. 1688, art. 1689 [para. 10].

Counsel:

Louis Vaillancourt, Q.C., for the appellant;

Allain Letourneau, for the respondent.

This appeal was heard by the Supreme Court of Canada on June 23, 1975. Judgment was delivered by the Supreme Court of Canada on December 4, 1975 and the following opinions were filed:

PIGEON, J. - see paragraphs 1 to 23.

de GRANDPRE, J. - dissenting, see paragraphs 24 to 49.

LASKIN, C.J.C., MARTLAND and JUDSON, JJ. concurred with PIGEON, J.

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8 practice notes
  • SEDCO et al. v. Kelly (William) Holdings Ltd. et al., (1990) 83 Sask.R. 33 (CA)
    • Canada
    • Saskatchewan Court of Appeal (Saskatchewan)
    • March 13, 1989
    ...Associates (1975), 11 N.S.R.(2d) 389; 5 A.P.R. 389 (C.A.), refd to. [para. 71]. Vermont Construction Inc. v. Beatson, [1977] 1 S.C.R. 758; 8 N.R. 271; 67 D.L.R.(3d) 95, refd to. [para. Moresk Cleaners Ltd. v. Hicks, [1966] 2 Lloyd's Rep. 338, refd to. [para. 72]. Junior Books Ltd. v. Veitch......
  • Graham Construction & Engineering Ltd. v. Mont St. Joseph Home Inc. et al., 2004 SKQB 511
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    • Saskatchewan Court of Queen's Bench of Saskatchewan (Canada)
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    ...513 (sub nom. A. Bergeron & Fils Ltee. v. Dom Ready Mix Inc. ); Vermont Const. Inc. v. Beatson , [1977] 1 S.C.R. 758; 67 D.L.R.(3d) 95; 8 N.R. 271, 519; Yemen Salt Mining Corp. v. Rhodes-Vauqhan Steel Ltd. , supra. 'The cases relied on by Hanson establish that where a plaintiff sues for......
  • Laidar Holdings Ltd. v. Lindt & Sprungli (Canada) Inc. et al., (2012) 316 B.C.A.C. 42 (CA)
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    • British Columbia Court of Appeal (British Columbia)
    • December 16, 2011
    ...Mix Inc. and Bilodeau, [1975] 2 S.C.R. 345; 8 N.R. 513, refd to. [para. 18]. Vermont Construction Inc. v. Beatson, [1977] 1 S.C.R. 768; 8 N.R. 271 (Eng.); 8 N.R. 519 (Fr.), refd to. [para. Candler v. Crane, Christmas & Co., [1951] 2 K.B. 164 (C.A.), refd to. [para. 18]. Hedley Byrne v. ......
  • Trident Construction Ltd. v. Wardrop (W.L.) and Associates Ltd. et al., (1979) 1 Man.R.(2d) 268 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • September 4, 1979
    ...Dutton v. Bognor Regis United Building Co. Ltd. et al., [1972] 1 All E.R. 462, appld. [para. 182]. Vermont Construction Inc. v. Beatson (1976), 8 N.R. 271, 519; [1977] 1 S.C.R. 758, consd. [para. Walter Cabott Construction Ltd. v. The Queen (1974), 44 D.L.R.(3d) 82, consd. [para. 185]. Monr......
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8 cases
  • SEDCO et al. v. Kelly (William) Holdings Ltd. et al., (1990) 83 Sask.R. 33 (CA)
    • Canada
    • Saskatchewan Court of Appeal (Saskatchewan)
    • March 13, 1989
    ...Associates (1975), 11 N.S.R.(2d) 389; 5 A.P.R. 389 (C.A.), refd to. [para. 71]. Vermont Construction Inc. v. Beatson, [1977] 1 S.C.R. 758; 8 N.R. 271; 67 D.L.R.(3d) 95, refd to. [para. Moresk Cleaners Ltd. v. Hicks, [1966] 2 Lloyd's Rep. 338, refd to. [para. 72]. Junior Books Ltd. v. Veitch......
  • Graham Construction & Engineering Ltd. v. Mont St. Joseph Home Inc. et al., 2004 SKQB 511
    • Canada
    • Saskatchewan Court of Queen's Bench of Saskatchewan (Canada)
    • December 16, 2004
    ...513 (sub nom. A. Bergeron & Fils Ltee. v. Dom Ready Mix Inc. ); Vermont Const. Inc. v. Beatson , [1977] 1 S.C.R. 758; 67 D.L.R.(3d) 95; 8 N.R. 271, 519; Yemen Salt Mining Corp. v. Rhodes-Vauqhan Steel Ltd. , supra. 'The cases relied on by Hanson establish that where a plaintiff sues for......
  • Laidar Holdings Ltd. v. Lindt & Sprungli (Canada) Inc. et al., (2012) 316 B.C.A.C. 42 (CA)
    • Canada
    • British Columbia Court of Appeal (British Columbia)
    • December 16, 2011
    ...Mix Inc. and Bilodeau, [1975] 2 S.C.R. 345; 8 N.R. 513, refd to. [para. 18]. Vermont Construction Inc. v. Beatson, [1977] 1 S.C.R. 768; 8 N.R. 271 (Eng.); 8 N.R. 519 (Fr.), refd to. [para. Candler v. Crane, Christmas & Co., [1951] 2 K.B. 164 (C.A.), refd to. [para. 18]. Hedley Byrne v. ......
  • Trident Construction Ltd. v. Wardrop (W.L.) and Associates Ltd. et al., (1979) 1 Man.R.(2d) 268 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • September 4, 1979
    ...Dutton v. Bognor Regis United Building Co. Ltd. et al., [1972] 1 All E.R. 462, appld. [para. 182]. Vermont Construction Inc. v. Beatson (1976), 8 N.R. 271, 519; [1977] 1 S.C.R. 758, consd. [para. Walter Cabott Construction Ltd. v. The Queen (1974), 44 D.L.R.(3d) 82, consd. [para. 185]. Monr......
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