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Thursday, January 14, 2010

Summary Judgment granted for failure to deliver on marketing contract

The Saskatchewan Court of Queen's Bench granted summary judgment in favour of Walker Seeds Ltd. after the defendant, Jacob Enterprises Ltd., failed to deliver fully on a marketing agreement for desi chickpeas. The agreement provided that Jacob would deliver to Walker all chickpeas growns on 660 acres of land in 2006, save that Jacob could retain 95 pounds net per acre for seed. There was a dispute between the parties as to how much Jacob actually harvested in 2006. The contract provided for a base production amount of 13,200 bushels, and the Court found that Jacob had exceeded this production, although he delivered only 8,258 bushels to Walker. The Court granted judgment to Walker for the difference owing of 4,942 bushels at 60 pounds per bushel (296,520 pounds) times $6.25 per bushel, or $18,532.50.

A counterclaim by Jacob Enterprises for severe emotional distress caused by an alleged failure by Walker to pay for delivered chickpeas in a timely fashion and failure to provide receipts for grain was dismissed. The Court noted the difficulty it had in accepting a claim by the corporation for the emotional distress of its shareholder.

Walker Seeds Ltd. v. Jacob Enterprises Ltd. 2009 SKQB 482
http://www.canlii.org/en/sk/skqb/doc/2009/2009skqb482/2009skqb482.html