Cynader - LAW 318 - Final PDF

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Full material class for tort law including caselaw...

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I. Damages..........................................................................................................................7 Basic Process for Assessing Damages:.....................................................................................7 Expectation Damages...............................................................................................................7 General Principles & Lost Profits...........................................................................................................7 Theory and Background (from Fuller & Perdue)...............................................................................7 Claiming Lost Profits.........................................................................................................................8 Canlin Ltd v. Thiokol Fibres Canada [1983, ONCA]...............................................................8 Problems of Determining the Value of a Bargain: Avoiding Double Recovery.................................8 R. G. McLean Ltd. v. Canadian Vickers Ltd. [1971, ONCA]..................................................8 M.G. Baer, “The Assessment of Damages for Breach of Contract – Loss and Profit”.................9 Doctrine of Election...........................................................................................................................9 Profit or Capital.............................................................................................................................9 Overlap of Expenditures and Lost Profits...................................................................................10 Problems of Proof........................................................................................................................10 Ticketnet Corp v. Air Canada [1998, ONCA] – Laskin JA....................................................10 Damages for Breach of K w/ Alternative Modes of Performance........................................................12 Hamilton v. Open Window Bakery [2004, SCC]...................................................................12 Durham Tees Valley Airport Ltd. v. bmibaby Ltd. [2010, Eng. CA]......................................13 Ditmars v. Ross Drug Co. [1971, NBQB]..............................................................................13 Lewis v. Lehigh Northwest Cement Ltd. [2009, BCCA].......................................................13 Cost of Performance or Lost Market Value..........................................................................................14 Posner – Economic Analysis of Law...............................................................................................14 Efficiency....................................................................................................................................14 Economic Analysis and Damages...............................................................................................14 Lost Value vs. Cost of Performance.................................................................................................15 The Old Approach: Wigsell v. School for the Indigent Blind, as cited in Radford v. DeFroberville, and McGregor on Damages................................................................................15 Megarry V-C in Tito v. Waddell, Four Propositions on Cost of Performance Awards:...............15 Radford v. DeFroberville [1977]............................................................................................16 Cotter......................................................................................................................................16 Sunshine Exploration Ltd. v. Dolly Varden Mines Ltd. [1970, SCC]....................................17 Groves v. John Wunder Co. [1939, Minn. SC].......................................................................17 Peevyhouse v. Garland Coal Mining Co. [1963, Oklahoma SC]...........................................18 Ruxley Electronics and Construction Ltd. v. Forsyth [1996, HL]..........................................18 Wilson v. Sooter [1988, BCCA].............................................................................................19 Miles v. Marshall [1975, ON].................................................................................................19 Summary of Factors re Cost of Performance v. Lost Market Value............................................19 Starting Points........................................................................................................................19 Factors....................................................................................................................................20 Non-Pecuniary (Aggravated) Damages for Breach of K......................................................................20 Basics...............................................................................................................................................20 Addis v. Gramophone [1909, HL]..........................................................................................20 Vorvis v. ICBC [1989, SCC]..................................................................................................20 Policy Concerns...............................................................................................................................20 Exceptions to the General Rule: Situations in Which Courts WILL Award Non-Pecuniary Damages...........................................................................................................................................21 1. Where Breach of K Causes Significant Physical Inconvenience............................................21 Hobbs v. Southeastern Railway [1875]..................................................................................21 Warton [BCCA]......................................................................................................................21 2. Psychological Deliverables.....................................................................................................21 Jarvis v. Swan Tours [1972, Eng. CA]...................................................................................21 Farley v. Skinner [2002, HL]..................................................................................................21 Fidler v. Sun Life [2006, SCC]...............................................................................................22 Aggravated Damages..................................................................................................................22

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Turczinski v. Dupont Heating and Air Conditioning [2004, ONCA].....................................22 Wallace v. United Grain Growers [1997, SCC]......................................................................23 Honda v. Keays [2010, SCC].................................................................................................23

Reliance Damages...................................................................................................................24 General..................................................................................................................................................24 Reliance damages ARE available:...................................................................................................24 Reliance damages ARE NOT available:..........................................................................................24 Where Expected Profits are Not Determinable:...............................................................................24 Misc Rules on Reliance Damages....................................................................................................25 Reliance Damages for Negligent Misrepresentation............................................................................25 Negligent Misrepresentation Damages: Requirements (Hedley Byrne Principle)..........................25 Application.......................................................................................................................................26 Beaver Lumber v. McLenaghan.............................................................................................26 VK Mason v. Bank of Nova Scotia [SCC].............................................................................26 Rainbow Caterers v. CNR......................................................................................................27 Negligence and Reliance in Professional Services...............................................................................28 Posesorski...............................................................................................................................28 Messineo v. Beale [1978, ONCA]..........................................................................................28 Kienzle v. Stringer..................................................................................................................28

Restitutionary Remedies........................................................................................................29 Basics....................................................................................................................................................29 Remedial Advantages:..........................................................................................................................29 Established Categories of Restitution Remedy:....................................................................................30 Requirements for Restitution to be Granted.........................................................................................31 Restitution in Contract..........................................................................................................................32 Quantum  Various Approaches..........................................................................................................33

Punitive Damages...................................................................................................................34 Distinguishing Between Some Common Types of Damages...............................................................34 When are Punitive Damages Available?...............................................................................................35 Concerns...........................................................................................................................................35 The UK Position...............................................................................................................................35 Broome v. Cassell [1972, HL]................................................................................................35 Canadian Jurisprudence...................................................................................................................36 US Jurisprudence.............................................................................................................................37

II. Limiting Factors..........................................................................................................37 Intro to Limiting Factors:......................................................................................................37 Remoteness..............................................................................................................................38 Hadley v. Baxendale...............................................................................................................38 Parsons (Livestock) Ltd. v. Uttle Ingham [1978, QBCA]......................................................39 Kienzle v. Stringer [1981, ONCA].........................................................................................39 Matheson v. Canada [2000, NSCA].......................................................................................40 Summary of Remoteness......................................................................................................................40

Mitigation................................................................................................................................41 Basics....................................................................................................................................................41 Cockburn v. Trusts Guarantee Co...........................................................................................41 Apeco v. Windmill..................................................................................................................42 Erie County Natural Gas v. Carroll [HL]...............................................................................42 Jamal v. Moola Dawood Sons & Co. [1916, PC (Burma)]....................................................43 Campbell Mostyn v. Barnett Trading.....................................................................................43

Time of Assessment.................................................................................................................43 Asamera Oil Corp. v. Sea Oil and General Corp. [1979, SCC].............................................43

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Dodd Properties v. Canterbury City Council [Eng. CA]........................................................44 Perry v. Sidney Philips [1982, Eng. CA]................................................................................45

Damages in Lieu of Specific Performance............................................................................45 Wroth v. Tyler [1974, Eng.]....................................................................................................46 Semelhago v. Paramadevan [1996, SCC]...............................................................................46

Specific Performance in Real Estate Ks................................................................................46 Background...........................................................................................................................................47 Domowicz v. Orsa Investments Ltd. [1993, ON Gen. Div.]...................................................47 McNabb v. Smith [1982, BCCA]...........................................................................................47 Semelhago v. Paramadevan [1996, SCC] (continued)...........................................................47 John E. Dodge Holdings Ltd. v. 805062 Ontario Ltd. [2001, ONSC]...................................48 Earthworks 2000 Design Group Inc. v. Spectacular Investments (Canada) [2005, BCSC]...48 Raymond v. Raymond Estate [2011, SKCA].........................................................................48

Measurement Issues: Reinstatement or Diminution............................................................49 Damage to Chattels...............................................................................................................................49 Dewees v. Morrow [1932, BCCA].........................................................................................49 Darbishire v. Warran [1963, Eng. CA]...................................................................................49 O’Grady v. Westminster Scaffolding Ltd. [1962, QB]...........................................................49 Factors to Consider Re Reinstatement for Damage to Chattels:......................................................50 Damage to Real Property......................................................................................................................50 Taylor v. Hepworths Ltd.........................................................................................................50 Jens v. Mannix & Co. [1978, BCSC].....................................................................................50 Kates v. Hall [1991, BCCA]...................................................................................................51 Betterment.............................................................................................................................................51 James St. Hardware v. Spizziri [1987, ONCA]......................................................................51 Safe Steps...............................................................................................................................52 Fontaine v. Roofmart Western Ltd. [2005, MBQB]...............................................................52

III. Remedies for Personal Injury....................................................................................52 Context: The Role of Tort in Dealing with Disability...........................................................52 Andrews (The “Trilogy”): Overview of Methodology.........................................................53 Lump Sums: Finality vs. Accuracy.......................................................................................53 Advantages and Disadvantages.............................................................................................................53 Discounting...........................................................................................................................................53 Theoretical basis:.............................................................................................................................54 The Trilogy Mistake:........................................................................................................................54 Law and Equity Act..........................................................................................................................54

Non-Pecuniary Losses............................................................................................................55 The “Insurance Crisis”:.........................................................................................................................55 New Theoretical Basis – The Functional Approach.............................................................................55 As Opposed To:................................................................................................................................55 Basics of the Functional Approach..................................................................................................56 The Cap.......................................................................................................................................56 Logical Conclusions of the Functional Approach............................................................................56 Problems with the Canadian Approach............................................................................................56 Alternatives......................................................................................................................................57

Pecuniary Losses: Lost Future Earnings..............................................................................57 Step 1: Estimate the level of earnings..............................................................................................57 Step 2: Consider length of working life...........................................................................................57 Lost Years....................................................................................................................................58 Step 3: Factor in Contingencies:......................................................................................................58

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Step 4; Account for Residual Earnings............................................................................................58 Step 5: Deduct for Any Overlap with Cost of Care.........................................................................59 Step 6: Factor in Collateral Benefits................................................................................................59 Step 7: Discount to Present Value................................................................................