VSH Management Inc. et al. v. Neufeld et al., [2002] B.C.T.C. 755 (SC)

JudgeMelnick, J.
CourtSupreme Court of British Columbia (Canada)
Case DateMay 17, 2002
JurisdictionBritish Columbia
Citations[2002] B.C.T.C. 755 (SC);2002 BCSC 755

VSH Mgt. Inc. v. Neufeld, [2002] B.C.T.C. 755 (SC)

MLB headnote and full text

Temp. Cite: [2002] B.C.T.C. TBEd. AU.036

VSH Management Inc. and John Binkley (plaintiffs) v. Lonnie H. Neufeld and C. Geoffrey Burgess carrying on business as Burgess, Austin & Associates and the said Burgess, Austin & Associates (defendants)

(C985549; 2002 BCSC 755)

Indexed As: VSH Management Inc. et al. v. Neufeld et al.

British Columbia Supreme Court

Vancouver

Melnick, J.

May 17, 2002.

Summary:

This headnote contains no summary.

Damage Awards - Topic 766

Torts/Quebec responsibility - Fraud and misrepresentation - Negligent misrepresentation - See paragraphs 141 to 153.

Equity - Topic 3602

Fiduciary or confidential relationships - General principles - Elements of a fiduciary relationship - See paragraphs 47 to 76.

Equity - Topic 3606

Fiduciary or confidential relationships - General principles - What constitutes a fiduciary relationship - See paragraphs 47 to 76.

Equity - Topic 3719

Fiduciary or confidential relationships - Commercial relationships - Professional advisory relationships - See paragraphs 47 to 76.

Fraud and Misrepresentation - Topic 2508

Misrepresentation - General principles - Negligent misrepresentation - See paragraphs 77 to 140.

Fraud and Misrepresentation - Topic 2535

Misrepresentation - Elements of - Reliance - See paragraphs 77 to 140.

Fraud and Misrepresentation - Topic 2743

Misrepresentation - Negligent advice - What constitutes - See paragraphs 77 to 140.

Fraud and Misrepresentation - Topic 2830

Misrepresentation - Defences - No detrimental reliance (damages) - See paragraphs 77 to 140.

Professional Occupations - Topic 4067

Appraisers or adjusters - Negligence - Standard of care - Reports - See paragraphs 77 to 140.

Torts - Topic 61

Negligence - Causation - Causal connection - See paragraphs 77 to 140.

Torts - Topic 8988

Duty of care - Particular relationships - Negligent words - What constitutes negligent advice - See paragraphs 77 to 140.

Cases Noticed:

Frame v. Smith and Smith, [1987] 2 S.C.R. 99; 78 N.R. 40; 23 O.A.C. 84; 42 D.L.R.(4th) 81; 9 R.F.L.(3d) 225, refd to. [para. 50].

International Corona Resources Ltd. v. LAC Minerals Ltd., [1989] 2 S.C.R. 574; 101 N.R. 239; 36 O.A.C. 57; 61 D.L.R.(4th) 14; 35 E.T.R. 1; 44 B.L.R. 1, refd to. [para. 51].

Hodgkinson v. Simms et al., [1994] 3 S.C.R. 377; 171 N.R. 245; 49 B.C.A.C. 1; 80 W.A.C. 1; [1994] 9 W.W.R. 609; 22 C.C.L.T.(2d) 1; 117 D.L.R.(4th) 161, refd to. [para. 52].

Guerin v. Canada, [1984] 2 S.C.R. 335; 55 N.R. 161; [1985] 1 C.N.L.R. 120; 13 D.L.R.(4th) 321, refd to. [para. 54].

Varcoe v. Sterling (1992), 7 O.R.(3d) 204 (Gen. Div.), refd to. [para. 56].

Madhani v. Pirani et al., [1997] B.C.T.C. Uned. E70 (S.C.), refd to. [para. 59].

Roe, McNeill and Co. v. McNeill (1998), 104 B.C.A.C. 20; 170 W.A.C. 20; 45 B.C.L.R.(3d) 35 (C.A.), refd to. [para. 59].

R. v. Kelly, [1992] 2 S.C.R. 170; 137 N.R. 161; 9 B.C.A.C. 161; 19 W.A.C. 161; 92 D.L.R.(4th) 643, refd to. [para. 59].

Haida Inn Partnership v. Touche Ross & Co. (1989), 42 B.C.L.R.(2d) 151 (S.C.), refd to. [para. 63].

C.A. et al. v. Critchley et al. (1998), 113 B.C.A.C. 248; 184 W.A.C. 248; 60 B.C.L.R.(3d) 92 (C.A.), refd to. [para. 63].

Ubacol Investments Ltd. v. Royal Bank of Canada (1995), 171 A.R. 122 (Q.B.), refd to. [para. 75].

Abbey Blinds Inc. v. Mikesh, [1996] B.C.J. No. 920 (S.C.), refd to. [para. 78].

Avco Financial Services v. Holstein (1980), 8 Sask.R. 192; 109 D.L.R.(3d) 128 (Q.B.), refd to. [para. 79].

Cari-Van Hotel Ltd. v. Globe States Ltd. et al., [1974] 6 W.W.R. 707 (B.C.S.C.), refd to. [para. 80].

Baxter v. Gapp (F.W.) & Co., [1938] 4 All E.R. 457 (K.B.), refd to. [para. 81].

Kokanee Mortgage MIC Ltd. v. Concord Appraisals Ltd., [2000] B.C.T.C. 595 (S.C.), refd to. [para. 82].

Friedland v. Derochie, Hoffman Ltd., [1992] O.J. No. 1179 (Gen. Div.), refd to. [para. 83].

Haven Investments Ltd. v. Harper, [1985] B.C.J. No. 190 (Co. Ct.), affd. (1987), 10 B.C.L.R.(2d) 56 (C.A.), refd to. [para. 85].

Caisse Populaire de Maillardville Credit Union v. Severn, Buchan & Associates Ltd., [1985] B.C.J. No. 465 (S.C.), affd. [1986] B.C.J. No. 990 (C.A.), refd to. [para. 86].

Eaton Bay Trust Co. (Alta.) v. First Citizens Financial Corp. (1988), 30 B.C.L.R.(2d) 84 (S.C.), refd to. [para. 86].

Kripps v. Touche Ross & Co. (1995), 5 B.C.L.R.(3d) 22 (S.C.), refd to. [para. 118].

Snell v. Farrell, [1990] 2 S.C.R. 311; 110 N.R. 200; 107 N.B.R.(2d) 94; 267 A.P.R. 94; 72 D.L.R.(4th) 289; 4 C.C.L.T.(2d) 229, refd to. [para. 126].

Athey v. Leonati et al., [1996] 3 S.C.R. 458; 203 N.R. 36; 81 B.C.A.C. 243; 132 W.A.C. 243; 140 D.L.R.(4th) 235; 31 C.C.L.T.(2d) 113; [1997] 1 W.W.R. 97, refd to. [para. 126].

Rainbow Industrial Caterers Ltd. et al. v. Canadian National Railway Co. et al., [1991] 3 S.C.R. 3; 126 N.R. 354; 3 B.C.A.C. 1; 7 W.A.C. 1; 8 C.C.L.T.(2d) 225; 59 B.C.L.R.(2d) 129; [1991] 6 W.W.R. 385; 84 D.L.R.(4th) 291, refd to. [para. 128].

Canson Enterprises Ltd. et al. v. Boughton & Co. et al., [1991] 3 S.C.R. 534; 131 N.R. 321; 6 B.C.A.C. 1; 13 W.A.C. 1; 85 D.L.R.(4th) 129; [1992] 1 W.W.R. 245; 61 B.C.L.R.(2d) 1, refd to. [para. 130].

Granville Savings & Mortgage Corp. v. Mark Swallow Thompson Allard & Co. (1996), 19 B.C.L.R.(3d) 303 (S.C.), refd to. [para. 130].

Authors and Works Noticed:

Linden, Allen M., Canadian Tort Law (6th Ed. 1997), pp. 104, 105 [para. 126].

Counsel:

C.E. Hinkson, Q.C., and M.G. Thomas, for the plaintiffs;

R.M. McLennan and K. Zimmer, for the defendants.

This action was heard on December 3-7, 10-14 and 27, 2001, before Melnick, J., of the British Columbia Supreme Court, who delivered the following decision on May 17, 2002.

Please note: The following judgment has not been edited.

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6 practice notes
  • Condominium Corp. No. 9813678 et al. v. Statesman Corp. et al., (2009) 472 A.R. 33 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • May 8, 2009
    ...et al., [2008] B.C.T.C. Uned. 16; 2008 BCSC 41, refd to. [para. 22]. VSH Management Inc. et al. v. Neufeld et al., [2002] B.C.T.C. 755; 2002 BCSC 755, refd to. [para. 22]. McClelland et al. v. Stewart et al. (2004), 204 B.C.A.C. 150; 333 W.A.C. 150; 2004 BCCA 458, refd to. [para. 22]. Bella......
  • Payne v. Eagle Ridge Pontiac GMC Ltd. et al., 2009 BCSC 530
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    • British Columbia Supreme Court of British Columbia (Canada)
    • April 24, 2009
    ...were brought to my attention: Kumar v. Picco , 2007 BCSC 1669, 53 C.C.L.T. (3d) 300, and VSH Management Inc. v. Neufeld , 2002 BCSC 755, [2002] 9 W.W.R. 709. [38] In applying the law to the facts of this case, I will address the following questions, relating to the common issues: (1) Did Ea......
  • Royal Bank of Canada v. Richardson Appraisals Inc. et al., 2003 BCSC 718
    • Canada
    • British Columbia Supreme Court of British Columbia (Canada)
    • April 10, 2003
    ...a number of formulations of this standard, several of which were reviewed by Melnick, J. in VSH Management Inc. et al v. Neufeld et al , 2002 BCSC 755. These, predictably, tend to address the duty as it relates to valuation. For the purposes of this case, Melnick, J.'s brief encapsulation w......
  • Royal Bank of Canada v. Westech Appraisal Services Ltd., 2018 BCSC 473
    • Canada
    • Supreme Court of British Columbia (Canada)
    • March 23, 2018
    ...Decisions in this province including, Royal Bank v. Richardson Appraisals Inc., 2003 BCSC 718; and VSH Management Inc. v. Neufeld, 2002 BCSC 755, have accepted the characterization of that duty as set out in Avco Financial Services v. Holstein (1980), 109 D.L.R. (3d) 128 (Sask. Q.B.) at p. ......
  • Request a trial to view additional results
7 cases
  • Condominium Corp. No. 9813678 et al. v. Statesman Corp. et al., (2009) 472 A.R. 33 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • May 8, 2009
    ...et al., [2008] B.C.T.C. Uned. 16; 2008 BCSC 41, refd to. [para. 22]. VSH Management Inc. et al. v. Neufeld et al., [2002] B.C.T.C. 755; 2002 BCSC 755, refd to. [para. 22]. McClelland et al. v. Stewart et al. (2004), 204 B.C.A.C. 150; 333 W.A.C. 150; 2004 BCCA 458, refd to. [para. 22]. Bella......
  • Payne v. Eagle Ridge Pontiac GMC Ltd. et al., 2009 BCSC 530
    • Canada
    • British Columbia Supreme Court of British Columbia (Canada)
    • April 24, 2009
    ...were brought to my attention: Kumar v. Picco , 2007 BCSC 1669, 53 C.C.L.T. (3d) 300, and VSH Management Inc. v. Neufeld , 2002 BCSC 755, [2002] 9 W.W.R. 709. [38] In applying the law to the facts of this case, I will address the following questions, relating to the common issues: (1) Did Ea......
  • Royal Bank of Canada v. Richardson Appraisals Inc. et al., 2003 BCSC 718
    • Canada
    • British Columbia Supreme Court of British Columbia (Canada)
    • April 10, 2003
    ...a number of formulations of this standard, several of which were reviewed by Melnick, J. in VSH Management Inc. et al v. Neufeld et al , 2002 BCSC 755. These, predictably, tend to address the duty as it relates to valuation. For the purposes of this case, Melnick, J.'s brief encapsulation w......
  • Royal Bank of Canada v. Westech Appraisal Services Ltd., 2018 BCSC 473
    • Canada
    • Supreme Court of British Columbia (Canada)
    • March 23, 2018
    ...Decisions in this province including, Royal Bank v. Richardson Appraisals Inc., 2003 BCSC 718; and VSH Management Inc. v. Neufeld, 2002 BCSC 755, have accepted the characterization of that duty as set out in Avco Financial Services v. Holstein (1980), 109 D.L.R. (3d) 128 (Sask. Q.B.) at p. ......
  • Request a trial to view additional results

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