From: Jason W
Neyers <jneyers@uwo.ca>
Sent: Thursday
19 September 2024 17:38
To: obligations
Subject: ODG:
Winnipeg Condo and Maple Leaf Foods
Dear
Colleagues:
Those
interested in pure economic loss in the context of building construction will
find Centurion Apartment Properties Limited Partnership v. Sorenson Trilogy
Engineering Ltd., 2024 BCCA 25 (CanLII) interesting: https://www.canlii.org/en/bc/bcca/doc/2024/2024bcca25/2024bcca25.html#BookMark223
In that
case, the BCCA decided that although the SCC had said in MLF that the
chain of contracts linking plaintiff to intermediate and intermediate to
defendant (in this case subsequent owner and builder and builder and negligent
architectural firm) were highly relevant to proximity between plaintiff and
defendant in tort, this principle did not apply to buildings that were
dangerous. On the facts, this chain of contracts limited the liability of
the architects to the builder to the fees paid by the builder (approx. $90,000)
and the liability of the builder to the owner to $1 million. The court found
that to take this chain into account, and thereby not allow full liability by
the architects to the owner, would not just and fair .
The Supreme
Court of Canada has refused leave. It seems that if Justice Brown s
intent in MLF was to import something akin to the Australian concept of
vulnerability into the Canadian test of duty, to foreclose claims by
sophisticated parties who could have protected themselves from pure economic
loss, the BCCA misunderstood the message. The result in this case might be
usefully compared to the lack of liability in Brookfield Multiplex Ltd v
Owners Corporation Strata Plan 61288 [2014] HCA 36.
Sincerely,
Jason Neyers
Professor of Law
Faculty of Law
Western University
Law Building Rm 26
e. jneyers@uwo.ca
t. 519.661.2111 (x88435)
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