Cases - The Queen v Walter Cabott Construction Ltd

Record details

Name

The Queen v Walter Cabott Construction Ltd

Date

(1975)

Citation

21 BLR 42

Keywords

Contracts

Summary

This is a decision of the Federal Court of Appeal in Canada. WCC entered into Contract No. 1 with the Crown to construct a hatchery building and other facilities. Contract No. 3 was for the construction of a fishery and two new holding ponds which were to be adjacent to the hatchery building, but the holding ponds could not be constructed without encroaching on the area reserved for the construction of the hatchery building. WCC tendered for and was awarded Contract No. 3. It was hoped that this would mitigate the adverse effect on the work under Contract No. 1, although the work required under Contract No. 3 did interfere with the work under Contract No. 1 in consequence of which WCC commenced proceedings against the Crown claiming damages for (amongst other things) breach of contract.

Affirming the decision of the trial judge (in part) it was held (by a majority) that as a matter of fact, more than the actual site upon which the hatchery building was to stand was required to erect it and the Crown was in breach of contract in 2 respects, namely:

• denying WCC a portion of the site of the works which it was obliged to furnish to permit compliance with the contract;
• failing to observe an implied term that WCC would have a sufficient degree of uninterrupted and exclusive possession of the site to permit it to carry out its work unimpeded and in the manner of its choice.