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SALE OF GOODS - Implied conditions - Merchantable quality

Thursday, July 18, 2019 @ 6:33 AM  

Lexis Advance® Quicklaw®
Appeal by the plaintiff from damages of $355,193 awarded against it on the defendant’s counterclaim. Between 2008 and 2012, the appellant supplied more than 17,000 touchscreens to the respondent, a designer and manufacturer of mobile displace terminals used in taxis and buses. The respondent changed suppliers after observing an increase in complaints. The trial judge found the touchscreens were sold under implied conditions of fitness for the respondent’s purpose and of merchantability. She found the defects in the touchscreens were caused by a design or manufacturing issue. She awarded the respondent shipping and replacement costs, less the amounts the respondent owed the appellant under two outstanding invoices.

HELD: Appeal dismissed. The trial judge was entitled to accept the evidence of the respondent’s expert as to the cause of the defects. She made no error in finding the respondent’s decision to replace all screens, not just the identified defective ones, for two of its unsatisfied customers was reasonable. There was no reason not to compensate for the actual costs of repairs, even if they were performed by the respondent’s in-house employees.

1004335 Ontario Ltd. (c.o.b. A.D. Metro) v. DW Digital Wireless LP, [2019] O.J. No. 2900, Ontario Court of Appeal, K.N. Feldman, J.C. MacPherson and J.M. Simmons JJ.A., June 5, 2019. Digest No. TLD-July152019009