Supreme Court of Canada
Vieweger Construction Co. Ltd. v.
Rush & Tompkins Construction Ltd., [1965] S.C.R. 195
Date: 1964-12-21
Vieweger
Construction Co. Ltd. (Defendant) Appellant;
and
Rush &
Tomkins Construction Ltd. (Plaintiff) Respondent.
1964: November 4, 5; 1964:
December 21.
Present: Cartwright, Judson,
Ritchie, Hall and Spence JJ.
ON APPEAL FROM THE SUPREME
COURT OF ALBERTA, APPELLATE DIVISION
Contracts—Agreement between
subcontractors to undertake highway contract—Subsequent agreement of contractor
with one of the subcontractors to perform the contract—Whether contractor
entitled to enforce provisions of agreement betwen itself and one of the
subcontractors as against the other subcontractor—Counterclaim for arrears of
equipment rental—Claim for damages flowing from interim injunction preventing
subcontractor removing machinery.
The plaintiff company, which was the successful tenderer for
the construction of certain sections of a highway, had proposed an arrangement
with another company L that when the tender was accepted the plaintiff would
immediately assign the contract in whole to L. The plaintiff had advised L to
obtain the services of someone who had knowledge of excavating through rock and
who possessed the necessary equipment for that type of work. L made
arrangements with the defendant company V and an agreement between them was
executed on July 22, 1958. On the following day a copy of this agreement was
delivered to the plaintiff's manager, and on July 28th the plaintiff entered
into a contract with L. The job was commenced by L and V and some financial
assistance required by the latter in connection with its equipment was given by
the plaintiff. The work progressed badly and on April 1, 1959, L was to a large
extent removed by the plaintiff from the operation of the contract; L formally
abdicated its position under the contract on July 23rd.
[Page 196]
Under an agreement made between a representative of the
plaintiff and a representative of V, and later confirmed by a letter which the
plaintiff wrote to V, the plaintiff used V's equipment through the working
season of 1959 and certain rental payments were made. When these rentals fell
into arrears, V threatened to remove its machinery. The plaintiff took the
position that a partnership existed between V and L, which partnership was
evidenced by the agreement between the two on July 22, 1958, and that, since
such partnership existed, V was bound as was L by the provisions of the
contract between the plaintiff and L and particularly by para. 12 thereof,
which contained specific provisions in the event of default by the
subcontractor.
Upon V insisting that it must be paid the equipment rentals or
that it would remove its equipment, the plaintiff applied for and obtained an
interim injunction preventing V from so doing. At trial, the judge dismissed
the plaintiff's action and allowed the defendant's counterclaim, but refused to
grant to the defendant any damages attributable to the interim injunction. On
appeal, the Court of Appeal held that the plaintiff was entitled to the interim
injunction and dismissed the defendant's counterclaim. The defendant appealed
to this Court.
Held: The appeal should be allowed, the judgment in
favour of the defendant upon the counterclaim restored, and a reference directed
to determine the damages attributable to the interim injunction, such damages
to be granted to the defendant.
It was unnecessary to determine whether or not V and L were
partners. Even if one presumed that the relationship of these two companies was
a partnership, it was abundantly clear that the plaintiff elected to deal with
L alone. Having so elected the plaintiff now could not attempt to hold the
defendant liable and require it to perform the contract of L even if it were a
partner of L. British Homes Assurance Corporation, Ltd. v. Paterson,
[1902] 2 Ch. 404, applied; Calder v. Dobell (1871), 6 C.P. 486; Basma
v. Weekes et al., [1950] A.C. 441, distinguished. Accordingly, the
plaintiff was not entitled to enforce the provisions of para. 12 of the agreement
between itself and L, as against V, and prevent V from removing its equipment
either in April 1959, when L abandoned the contract, or later, when the
plaintiff failed to pay the equipment rental.
The defendant was entitled to succeed on its counterclaim for
the arrears of equipment rental which it alleged was owed to it by the
plaintiff. The transaction between the defendant company and the plaintiff
company was a contract for the payment of equipment rental at scheduled rates,
the schedule being that set out in the agreement of July 22, 1958, between V
and L.
With respect to the defendant's claim for damages flowing from
the interim injunction, this was an ordinary case of an injunction granted upon
a plaintiff's application and upon the plaintiff's undertaking to abide by any
order which the Court might make as to damages, and the plaintiff should be
required to make good its undertaking. Accordingly, an inquiry as to damages
was granted. Griffith v. Blake (1884), 27 Ch. D. 474, approved.
APPEAL from a judgment of the
Appellate Division of the Supreme Court of Alberta,
granting an appeal from
[Page 197]
a judgment of Riley J. Appeal
allowed, judgment of the Appellate Division set aside and judgment at trial
varied.
R. A. McLennan and T. C.
Fraser, for the defendant, appellant.
T. Mayson, for the
plaintiff, respondent.
The judgment of the Court was
delivered by
SPENCE J.:—This is an appeal from
the judgment of the Appellate Division of the Supreme Court of Alberta
pronounced on May 6, 1964, granting an appeal from the judgment pronounced
after trial by Riley J. on June 24, 1963.
In that judgment, the learned trial judge dismissed the action of the
respondent Rush & Tompkins Construction Ltd. and allowed the appellant's,
Vieweger Construction Ltd., counterclaim in the amount of $42,769.64, but
refused to grant to the appellant any damages attributable to the interim
injunction to which reference shall be made here-after.
Rush & Tompkins Construction
Ltd., hereinafter referred to as Rush & Tompkins, had acted as the
financial backer of a company known as Layden Construction Ltd., and in some
considerable number of cases had submitted tenders under its own name to owners
contemplating certain construction work. Then, when its tender was accepted,
Rush & Tompkins immediately assigned that contract in whole to Layden
Construction Ltd.
Upon a call for tenders having
been issued by the Government of Canada for the construction of certain
sections of the Trans-Canada Highway in the Rogers Pass area of British Columbia,
Rush & Tompkins proposed to make a similiar arrangement with Layden
Construction Ltd. but first advised Layden Construction Ltd. to obtain the
services of someone who had knowledge of excavating through rock and who
possessed the necessary equipment for that type of work. There is some
indication in the evidence that Rush & Tompkins actually designated to
Layden Construction the appellant company and its chief officer, Mr. Luther
Vieweger, as being acceptable. Be that as it may, Layden Construction Ltd.,
through its officers, Mr. James Layden and Mr. Earl Layden, met with Mr. Luther
Vieweger who assisted them with advice and figures and took an active
[Page 198]
part in the preparation of the
tenders for two sections of the said highway. The tenders were submitted in
Rush & Tompkins' name and upon Rush & Tompkins being advised that they
were the successful tenderers the general manager of that company, John Ford,
advised Mr. James Layden, the manager of Layden Construction Ltd. of that fact,
and told him to make his own arrangements with Vieweger Construction Ltd. Mr.
James Layden, at trial, testified:
Q. Following this meeting,
did you or Mr. Vieweger have a meeting or discussion as to your relationship?
A. Mr. Ford told me to make my own agreement with Mr. Vieweger, which we done
later on.
And Mr. Ford testified:
I discussed the matter with
Jim Layden that I wanted an agreement between he and Vieweger Construction as
to how they were going—what arrangements they were going to have between
themselves.
Upon receiving such instructions,
James Layden, Earl Layden, and their accountant, one James Butler, met with
Luther Vieweger and discussed the arrangement between Layden Construction Ltd.
and the appellant company. As a result an agreement was prepared and executed
by the respective companies. That agreement was produced at trial as Exhibit 4
and will be referred to hereafter.
On the very following day, i.e.,
July 23, 1958, James Layden delivered a copy of Exhibit 4 to Mr. John Ford, the
manager of Rush & Tompkins, and on July 28th Rush & Tompkins entered
into a contract with Layden Construction Ltd. This first agreement between Rush
& Tompkins and Layden Construction Ltd. was of an informal nature, produced
as Exhibit 12, and was later replaced by a formal contract which although it
also bore the date July 28, 1958 was not actually executed until some
considerable time thereafter. The latter formal contract was produced at trial
as Exhibit 9 and it will be referred to hereafter.
Layden Construction Ltd. and the
appellant commenced work. It appeared that the appellant company required some
financial assistance at the very beginning. Various items of their equipment
were repaired and the repairmen were paid directly by Rush & Tompkins. In
addition, the latter company paid to various finance companies accounts which
were alleged to be in arrears on equipment which the appellant company had
purchased. All of these payments were charged in Rush & Tompkins' accounts
to
[Page 199]
Layden Construction Ltd. and none
were charged to nor were payments of any kind received from the appellant
company.
Luther Vieweger was active on the
site of the work and in a short time differences of temperament between him and
the foreman of the Layden Construction company became a source of concern,
which seems to have been adjusted by Mr. Luther Vieweger suggesting that a
completely independent foreman be retained and given full authority and by
Luther Vieweger undertaking to "continue to serve to the best of my
ability under the circumstances centering particularly on getting some rock
drilled off". The work progressed badly and on April 1, 1959, Layden
Construction were to a large extent removed by Rush & Tompkins from the
operation of the contract. Layden Construction Ltd., on July 23, 1959, by
letter of that date, Exhibit 10, formally abdicated its position under the
contract of July 28, 1958.
It is of some considerable
significance that Luther Vieweger has sworn that he was never informed of the
final amount of the tenders submitted by Rush & Tompkins to the Canadian
Government and that he never received any copy of either Exhibit 12 or the
formal agreement which followed it, Exhibit 9, nor was he shown a copy of the
abdication letter to which I have just referred. He was informed by Mr. John
Ford, the general manager of Rush & Tompkins, that the Layden Construction
company was being removed from the operation and he was asked to confer with
the new project manager, a Mr. Murphy. He met Mr. Murphy in Vancouver, after
Mr. Murphy had inspected the site of the operations, and Mr. Vieweger swore
that at this meeting Mr. Murphy, on behalf of Rush & Tompkins, agreed to
use certain of the defendant's (here appellant's) equipment and to pay rental
therefor "as scheduled" and on July 8, 1959, Rush & Tompkins,
over the signature of Mr. Ford, wrote to Mr. Vieweger a letter which read as
follows:
On April 1, 1959, our Mr. B.
N. Murphy took over from Mr. Jim Layden as Project Manager on our road contract
15/58/TCH-G at Stoney Creek Siding, Glacier Park, B.C.
This is to confirm
arrangements made by Mr. Murphy with you subsequent to that date that you were
not required on job. However, as your equipment was to be used on this project,
it was agreed that you should draw a salary of $500.00 per month, while job was
in operation. Moreover,
[Page 200]
it was agreed that such
wages received would be deducted from any machine rental earned.
The appellant company worked
under this new arrangement with Rush & Tompkins and the respondent used the
equipment through the working season in 1959 and made certain payments on
account of rentals to the appellant company. When these equipment rentals fell
into arrears, the appellant company threatened to remove its machinery and for
the first time the respondent Rush & Tompkins took the position that a
partnership existed between the appellant company and Layden Construction Ltd.,
which partnership was evidenced by the agreement between the two on July 22,
1958, Exhibit 4, and that, since such partnership existed, the appellant
company was bound as was Layden Construction Ltd. by the provisions of the
contract between Rush & Tompkins and Layden Construction Ltd., Exhibit 9,
and particularly by para. 12 thereof, which read as follows:
12. If the Subcontractor
shall fail to commence the work or to prosecute the work continuously with
sufficient workmen and equipment to insure its completion within the time fixed
by the principal contract or to comply with the lawful orders of the Engineer
or to perform the work in strict accordance with the provisions of the
principal contract, or if for any other cause or reason the Subcontractor shall
fail to carry on the work in a manner acceptable to the Engineer or the
Contractor, the Contractor may give notice to the Subcontractor requiring it to
remedy such defects, orders, defaults or delays and if such orders are not
complied with or should such defaults or delays continue for Seventy-two hours
after such notice shall have been given or should the Subcontractor make
default in completion of the works or should the Subcontractor become insolvent
or abandon the work or make an assignment of this contract without the consent
of the Contractor, or otherwise fail to observe and perform any of the
provisions of the principal contract or of this contract, then in any of such
cases the Contractor without process of law and without any further
authorization may take all of the work out of the hands of the Subcontractor
and may employ such means as the Contractor may see fit to complete the works
and in such case the Subcontractor shall have no claim for any further payment
in respect of work performed and shall be chargeable with and shall remain
liable for all loss and damage which may be suffered by the Contractor by
reason of such non-compliance, default, delays or non-completion : PROVIDED
that should the expense incurred by the Contractor in taking over and
completing the work be less than the sum that would have become payable under
this agreement if said work had been completed by the Subcontractor, then the
Subcontractor shall be entitled
[Page 201]
to the difference, and
should such expense exceed the said sum, then the Subcontractor shall be liable
to and shall pay the Contractor the amount of such excess. In the event of the
Contractor taking over the work as aforesaid, all machinery, tools, plant,
equipment or other property of the Subcontractor on the work may be used by the
Contractor for the purpose of completing the work without charge. Upon the
taking over of the work by the Contractor as herein provided, no further
payment will be made to the Subcontractor until the work is completed, and any
monies due or that may become due to the Subcontractor under this agreement
will be withheld and may be applied by the Contractor to payments for labour,
materials, supplies and equipment used in the prosecution of the work by the
Contractor, or to the payment of any excess cost to the Contractor of
completing the work.
Upon the appellant company
insisting that it must be paid the equipment rentals or that it would remove
its equipment, the respondent company applied for and on October 13, 1959,
obtained an injunction preventing the appellant company so doing. That
injunction contained the usual provision reading:
and the Plaintiff, by its
Counsel, undertaking to abide by any order which this Court may make as to
damages in case this Court shall hereafter be of opinion that the defendant
shall have sustained any by reason of this order which the Plaintiff ought to
pay.
The defendant moved to vacate
that injunction order and such application was refused by the order of the
Court on November 6, 1959.
Much argument before this Court
was directed to whether in these circumstances a partnership existed between
Layden Construction Ltd. and the appellant company and if so, whether the
appellant company was bound by the provisions of s. 12 of the agreement between
the respondent and Layden Construction Ltd. which I have set out above. The
learned trial judge was of the opinion that such partnership did not exist and
in carefully considered reasons based his finding upon the circumstances to
which I have referred briefly aforesaid, although he did take into
consideration the agreement between Layden Construction Ltd. and the appellant
company, Exhibit 4.
The Appellate Division of the
Supreme Court of Alberta in reversing the judgment of the learned trial judge
relied very strongly upon the terms of that agreement, Exhibit 4, and were of
the opinion that the presumption of
[Page 202]
partnership which it evidenced
was not in any way rebutted by the circumstances upon which the learned trial
judge had relied.
I am of the opinion that it is
not necessary to determine whether or not the appellant company and Layden
Construction Ltd. were partners. Even if one presumes that the relationship of
these two companies was a partnership, it is abundantly clear that the
respondent elected to deal with Layden Construction Ltd. alone. It is to be
remembered that the respondent company had in its possession, when it drafted the
agreements between it and Layden Construction Ltd.—both the early informal
agreement, Exhibit 12, and the later formal agreement, Exhibit 9—a copy of
Exhibit 4, yet it chose to make both the informal and later the formal
agreements with Layden Construction Ltd. alone. As I have recited above, Mr.
Ford earlier instructed Mr. James Layden to make what arrangements he
deemed fit with the appellant company. It is not necessary to recite the many
occasions in his testimony in which Mr. Ford reiterated his position that he
was dealing with Layden Construction Ltd. and James Layden alone, and every
piece of evidence is consistent with that position and inconsistent with any
other. It was argued before us that the respondent company was not required to
make an election as to what remedies it would pursue until the appellant
company threatened to remove its equipment from the site. At that time, it was
submitted, in a further consideration of the contract between the appellant
company and Layden Construction Ltd., Exhibit 4, it came to the view that such
agreement created a partnership and it could then elect to hold the partner,
the appellant company, bound by the provisions of the contract between it, the
respondent, and Layden Construction Ltd., i.e., Exhibit 9. I cannot
accept this argument. I am of the opinion that the date on which the respondent
company came to the conclusion that the appellant company and Layden
Construction Ltd. were partners is quite irrelevant. The respondent company
knew throughout that the other two were in some sort of business relationship.
It had, in fact, caused that relationship to be
[Page 203]
created and it had knowledge of
the details of that relationship and yet the respondent company carefully chose
to enter into contractual arrangements with Layden Construction Ltd. alone.
I am of the opinion that British
Homes Assurance Corporation, Ltd. v. Paterson
is sound authority for the proposition that having so elected the respondent
company now cannot attempt to hold the appellant company liable and require it
to perform the contract of Layden Construction Ltd. even if it were a partner
of Layden Construction Ltd. There, Farwell J., at p. 408, quoted Lord Blackburn
in Scarf v. Jardine :
Where a man has an option to
choose one or other of two inconsistent things, when once he has made his
election it cannot be retracted, it is final and cannot be altered.
Lindley on Partnership, 11th ed.,
accepts the authority of this decision at p. 183 where, after quoting s. 5 of
the Partnership Act of 1890, which is a counterpart of s. 7 of the
Alberta Partnership Act, the learned author states:
It is hardly necessary to
observe that this section imposes no liability on a firm for acts done by a
partner, who is acting and is dealt with as acting, on his own behalf, and not
on behalf of the firm.
giving the British Homes
Assurance case as the authority for that proposition.
And at p. 248, the learned author
states:
The general proposition that
a partnership is bound by those acts of its agents which are within the scope
of their authority, in the sense explained in the foregoing pages, must be
taken with the qualification that the agent whose acts are sought to be imputed
to the firm was acting in his character of agent, and not as a principal.
(The italicizing is my own.)
The learned trial judge accepted
the authority of this decision and quoted therefrom as I have.
In the Court of Appeal, Johnson
J. A., giving the judgment for the Court, outlined the reliance of the present
appellant upon the decision and then continued:
In entering into the
contract the Layden company was acting as agent for itself and the respondent
and Calder v. Dobell, (1871), L.R. 6 C.P. 486, would be applicable.
[Page 204]
And then quoted Kelly C. B. at p.
499, noting that the passage was approved in Basma v. Weekes et al.
Those two decisions and the
others which are discussed in the judgments deal with cases where a partner or
agent was acting as such for either a disclosed or non-disclosed principal and
with the subsequent suit by the opposite party against such principal.
In the present case, the learned
trial judge concluded, and for the reasons which I have outlined I agree with
his conclusion, that Layden Construction Ltd. was dealing with the appellant
company as principal and was doing so at the insistance of the respondent
company through the agency of its general manager Ford. Therefore, with
respect, the cases cited by Johnson J. A. are not applicable and British
Homes Assurance is exactly applicable.
For these reasons, I have come to
the conclusion that the respondent company was not entitled to enforce the
provisions of s. 12 of the agreement between itself and the Layden Construction
company, Exhibit 9, as against the appellant company, and prevent the appellant
company from removing its equipment either in April 1959, when Layden
Construction Ltd. abandoned the contract, or later, when the respondent company
failed to pay the equipment rental. Having come to that conclusion, therefore,
I turn to the counterclaim of the appellant company for the arrears of
equipment rental which it alleges is owed to it by the respondent company. The
learned trial judge gave effect to this counterclaim acting on the basis which
he termed an implied contract.
Johnson J.A., giving judgment for
the Court in the Appellate Division, took the view that Murphy, as the agent
for the respondent company in his conversations with Mr. Luther Vieweger,
"went no further than to assume the obligations which the partnership by
the agreement of July 22nd assumed to the respondent".
I have concluded that no
partnership assumed such obligations; Layden Construction alone did so. It is
to be
[Page 205]
remembered that this was
certainly the view of Mr. Luther Vieweger at the time of his conversation with
Mr. Murphy, and Mr. Ford for the respondent company has admitted that it never
took the position that it could bind the appellant company as a partner of
Layden Construction Ltd. until months after when it ceased paying the equipment
rental.
I am of the opinion, therefore,
that the transaction between the appellant company and the respondent company,
the former represented by Mr. Luther Vieweger and the latter by Mr. Murphy, was
simply a contract for the payment of equipment rental at scheduled rates, the schedule
being that set out in Exhibit 4, the agreement between the appellant company
and Layden Construction Ltd. I cannot appreciate the argument of counsel that
what Mr. Vieweger was doing then was agreeing to continue the agreement between
the Layden company and the respondent company, Exhibit 9, and be paid the
schedule of rentals only from possible profits. It is agreed that at that time
the contract was $300,000 in deficit, and I do not see how it can be imagined
that Mr. Vieweger would agree to have his equipment worked with such a faint
hope of reward, when he did not then and for months later know that the
respondent company was taking the position that they were entitled to hold the
equipment on the site and he has never yet, let alone in April 1959, agreed to
that contention. An attempt was made to interpret the agreement between Mr.
Murphy and Mr. Vieweger as being to pay rentals in accordance with Exhibit 4.
That is not Mr. Vieweger's evidence of what occurred. He swore that Mr. Murphy
said:
Mr. Vieweger, we will pay
you for them, we will maintain them and keep them in order, and we will pay you
rentals as scheduled.
And in cross-examination, he was
asked these questions:
Q. Now, I say to you that
your arrangement, if you ever had one with Murphy, was that you were to get the
rentals on the same terms as you were entitled to under your agreement with
Layden? A. My understanding with Murphy, as I have told you, it was that we
would be paid at that rate, on the 15th of the month following, basis.
[Page 206]
Q. Did you understand that
Rush & Tompkins was stepping in, and was going to do the best he could to
see that you were paid rentals, if the project made money? A. Nobody ever told
me that, no.
Mr. Murphy did not give evidence
for the respondent company.
Counsel for the respondent
company submitted that practically all subcontracts bear a clause similar to
cl. 12 of Exhibit 9 and that Mr. Vieweger would know the existence of such a
clause and would expect that Rush & Tompkins would keep his equipment on
the site and use it for the completion of the contract. On the other hand, Mr.
Vieweger knew that he had made no such agreement and he could be under no such
impression. The agreement made between Mr. Vieweger and Mr. Murphy was, in my
opinion, confirmed by the letter which the respondent company wrote to the
appellant company on July 8, 1959, which I have recited above. I have no
difficulty in finding consideration for this contract. By virtue of it the
machines were left on the site and were used for months by the respondent
company, and the learned trial judge has found that there were payments made on
account of the equipment rentals, although no invoices were rendered by the
appellant company. The amount of the equipment rental in arrears has been agreed
at by counsel at the sum of $42,769.64 and the judgment at trial in favour of
the appellant on its counterclaim should be restored to such an extent.
I turn now to the appellant
company's claim for damages flowing from the interim injunction granted on
October 13, 1959, and continued on the motion to vacate. The learned trial
judge in refusing the appellant company's claim for such damages adopted the
principle stated by Hyndman J. in McBratney et al. v. Sexsmith ,
at p. 459, as follows:
The law is well settled that
it does not follow that because an interlocutory injunction is dissolved before
or after trial the successful defendant is therefore or in any event entitled
to damages. The test is whether the plaintiff, by the suppression of facts, or
misrepresentation, or maliciously, improperly obtains the injunction.
[Page 207]
It would appear that the proper
test was laid down by the Court of Appeal in Griffith v. Blake.
There, the Court of Appeal was concerned with a dictum of the late Master of
the Rolls in Smith v. Day,
to the effect that the undertaking as to damages only applies where the
plaintiff has acted improperly in obtaining the injunction, and all the members
of the Court expressed dissent with that view. Baggallay L.J. said, at p. 476:
If the Defendants turn out
to be right, it appears to me that they can, under the undertaking, obtain
compensation for all injury sustained by them from the granting of the
injunction.
And Cotton, L.J., said at p. 477:
But I am of opinion that his
dictum is not well founded, and that the rule is, that whenever the
undertaking is given, and the plaintiff ultimately fails on the merits, an
inquiry as to damages will be granted unless there are special circumstances
to the contrary.
(The italicizing is my own.)
Counsel for the respondent
company before this Court agreed to such statement of the principle, but
submitted that in this case there were special circumstances as it had not been
shown that the respondent company obtained the injunction by any perjury or
misrepresentation and that since two judges in the Trial Division and three
judges in the Court of Appeal were of the opinion that the respondent company
was entitled to its injunction, if this Court were of the other view it would
be an example of judicial error and not any misrepresentation by the respondent
company which caused the injunction to issue.
I am of the opinion that these
circumstances do not constitute such "special circumstances" as were
in the mind of Cotton L.J. There are examples of plaintiffs who are public
bodies and who acted in the public interest to hold the situation in statu
quo until the rights were determined. There are other cases where the
defendant, although he succeeded upon technical grounds, certainly had been
guilty of conduct which did not move the Court to exercise its discretion in
his favour. In these cases, the Court has found the "special
circumstances" which entitled it to
[Page 208]
refuse a reference as to damages.
Here, the respondent company throughout has insisted that very considerable
items of heavy construction machinery be held so the defendant could not use
them and therefore make any profit from them, and that situation continued for
months until the respondent company's use for the equipment ended. I am of the
opinion that it is an ordinary case of an injunction granted upon a plaintiff's
application and upon the plaintiff's undertaking, and that the plaintiff should
be required to make good its undertaking. I would, therefore, direct that there
be a reference in the ordinary course of procedure in the Province of Alberta
to determine such damages and that the appellant company be granted judgment
for such damages and the costs of the reference.
It is said that the damages can
now be ascertained at the sum of $30,500. Counsel for the respondent, however,
submits that there has been no proper proof of damages in that amount and,
reading the record, I am of the opinion that under the circumstances in this
case this Court would not be entitled to make a specific award of damages upon
the evidence set out therein.
In the result, I would allow the
appeal, restore the judgment in favour of the appellant company upon the
counterclaim for $42,769.64, direct a reference as aforesaid, and allow the
appellants its costs throughout.
Appeal allowed,
judgment of the Appellate Division set aside and judgment at trial varied, with
costs.
Solicitors for the
defendant, appellant: Becker, Weeks, Peterson, Clark, McLennan and Fraser,
Edmonton.
Solicitors for the
plaintiff, respondent: Milner, Steer, Dyde, Massie, Layton, Cregan and
Macdonnell, Edmonton.