The Ottawa Community Housing Corporation (OCHC) sued Sloan Valve Company and Wolseley Canada Inc. for damages related to the alleged failure of the Flushmate System, asserting claims for breach of warranty under the Sale of Goods Act, negligence, and negligent misrepresentation.
The defendants brought a Rule 21 motion to strike OCHC's claims for breach of implied warranty against Sloan and negligence against both defendants, arguing that implied warranties under the Sale of Goods Act require privity of contract and that pure economic loss from non-dangerous, shoddy goods is not recoverable in negligence.
The court granted the defendants' motion, striking both the implied warranty claim against Sloan and the negligence claims against both defendants, affirming that privity is required for implied warranties under the SGA and that economic loss for non-dangerous goods is not recoverable in negligence.
OCHC was granted leave to amend its pleading regarding negligent misrepresentation.