R. A. Cluney

The appellants leased farm equipment from the respondent and subsequently defaulted on their payments.

The respondent seized and sold the equipment, then sued for damages for breach of the leases.

The trial judge assessed damages using general contract principles, awarding the respondent the deficiency owed to its financing agent.

The Court of Appeal upheld the decision.

The Supreme Court of Canada dismissed the appeal, holding that the damages flowing from the breach of a chattel lease should be calculated in accordance with general contract principles, extending the rule previously applied to land leases.

The Court also found that the appellants failed to prove that the respondent had not reasonably mitigated its damages.

The appellant trust company retained the respondent solicitors to perform legal services for a mortgage transaction.

The mortgage was later declared void under the Nova Scotia Companies Act because it constituted unlawful financial assistance for the purchase of the company's shares.

The appellant sued the respondents for negligence.

The Supreme Court of Canada held that a solicitor can be concurrently liable to a client in tort and contract.

The respondents were found negligent for failing to identify the statutory prohibition and warn the appellant.

The Court also applied the discoverability rule to the limitation period, holding that the tort action was not statute-barred because the cause of action did not arise until the appellant discovered or ought to have discovered the negligence.