Bowlay Logging Ltd. v. Domtar Ltd. (1982) BC C.A.
Ratio
When a Pl is better off breaching the contract than continuing to perform and incurring losses, he cannot recover expectation damages for the breach
Facts
Pl underbids on logging contract with Def -- Pl would cut and skid the logs, Def would pay for them and truck them off
Pl is losing substantial money due to poor planning and inefficiency of operations
Def breaches contract by not supplying enough trucks
Pl elects to terminate for breach and sue for damages to staunch the hemorrhaging of money
Issue
Can Pl recover expectation damages?
Can Pl recover reliance damages?
Held
No
No
Analysis
Contract law awards damages for the Def’s breach, not for the Pl’s bad bargain
Expectation damages are zero, as had the contract been fully performed they’d be in a worse-off situation than they are now
Pl’s can’t ask for reliance damages because his losses were not as a result of the def’s breach but his own bad bargain
|