The respondent negligently caused a traffic accident on a provincial highway, resulting in debris and a risk of explosion.
The Crown incurred $300 in clean-up costs and sued to recover this amount.
The Court of Appeal characterized the claim as one for pure economic loss and denied recovery.
The Supreme Court of Canada allowed the appeal, holding that the highway suffered direct physical damage and the Crown, as the property owner, was entitled to recover the costs of restoring the road to its prior condition.
