A trucking company sued for unpaid transport invoices relating to produce shipments from U.S. airports to Ontario.
The produce wholesaler counterclaimed alleging that a delayed pickup of a pepper shipment caused spoilage and significant loss in value.
The court found the carrier liable for breach of contract because it failed to pick up the perishable shipment within the agreed timeframe, making the resulting spoilage foreseeable.
However, the wholesaler failed to take reasonable steps to mitigate its losses after the delay became apparent.
Liability for the losses was therefore apportioned equally between the parties, resulting in a net judgment in favour of the wholesaler after set‑off against the unpaid invoices.