The Application of Provincial Sale of Goods Law to Maritime Proceedings
Earlier this month, the Supreme Court of Canada released its much anticipated decision in the case of Desgagnés Transport Inc. v. Wärtsilä Canada Inc.
The case dealt with the applicability of section 1733 of the Quebec Civil Code which provides that certain exclusions of liability are invalid. In this case, Desgagnes, who had purchased an engine from Wartsila that subsequently failed, argued that the Civil Code applies such that Wartsila could not rely on an exclusion clause in the sale contract. Wartsila, the manufacturer of the engine, argued the opposite - i.e - that because the claim was maritime nature, the Civil Code was inapplicable.
The court concluded that the sale was maritime in nature and therefore a federal matter. However, it also concluded that provisions of the Quebec Civil Code could apply to maritime matters as long as there was no conflict with a validly enacted federal statute - which there was not.
The Court concluded that:
The federal power over navigation and sh…
The case dealt with the applicability of section 1733 of the Quebec Civil Code which provides that certain exclusions of liability are invalid. In this case, Desgagnes, who had purchased an engine from Wartsila that subsequently failed, argued that the Civil Code applies such that Wartsila could not rely on an exclusion clause in the sale contract. Wartsila, the manufacturer of the engine, argued the opposite - i.e - that because the claim was maritime nature, the Civil Code was inapplicable.
The court concluded that the sale was maritime in nature and therefore a federal matter. However, it also concluded that provisions of the Quebec Civil Code could apply to maritime matters as long as there was no conflict with a validly enacted federal statute - which there was not.
The Court concluded that:
The federal power over navigation and sh…
