Gregory B. Bordan

Domtar purchased a recovery boiler from C.E. (now ABB and Alstom).

The boiler's superheater developed leaks and cracks due to the use of H-style tie welds.

Domtar replaced the superheater and sued C.E. for latent defects and breach of the duty to inform.

The Supreme Court of Canada held that the excessive cracking constituted a latent defect.

As a manufacturer, C.E. was presumed to know of the defect and failed to rebut this presumption, rendering its limitation of liability clause inapplicable.

C.E. was held liable for the replacement costs.

The Court also dismissed the appeals regarding the insurers, finding Chubb liable on its performance bond and Arkwright not liable due to a latent defect exclusion clause.

Domtar purchased a recovery boiler from C.E. (now ABB and Alstom).

The boiler's superheater developed leaks and cracks due to the use of H-style tie welds.

Domtar replaced the superheater and sued C.E. for latent defects and breach of the duty to inform.

The Supreme Court of Canada held that the excessive cracking constituted a latent defect.

As a manufacturer, C.E. was presumed to know of the defect and failed to rebut this presumption, rendering its limitation of liability clause inapplicable.

C.E. was held liable for the replacement costs.

The Court also dismissed the appeals regarding the insurers, finding Chubb liable on its performance bond and Arkwright not liable due to a latent defect exclusion clause.

The Attorney General of Canada appealed a decision striking down portions of the Tobacco Act and the Tobacco Products Information Regulations.

The respondent tobacco manufacturers cross-appealed the provisions upheld by the lower court.

The Supreme Court of Canada held that while the restrictions on tobacco advertising, sponsorship, and the requirement for 50% health warning labels infringed the manufacturers' freedom of expression under s. 2(b) of the Charter, these limits were demonstrably justified under s. 1.

The Court found that Parliament's objectives of protecting public health and preventing youth smoking were pressing and substantial, and the measures chosen were proportional and minimally impairing.