Atlantic Potato Distributors Ltd., a potato distributor located in New Brunswick, brought an action against Robert Meersseman and Leon Meersseman, farmers in Ontario, seeking payment for seed potatoes. The Meerssemans admitted receiving and planting the seed potatoes, but asserted that some of the seed potatoes were defective, and counterclaimed to recover the resulting losses. A crop adjuster for Agricorp (Ontario's crop insurance program) inspected the Meerssemans' fields and reported that between 50 and 60 percent of the crop did not emerge. Following an unsatisfactory harvest, the Meerssemans refused to pay Atlantic for the seed.
Both parties were successful at trial (i.e. the Meerssemans owed Atlantic for the seed potatoes they had purchased, but Atlantic was liable to the Meerssemans for the losses they suffered as a result of planting those defective seed potatoes). Atlantic appealed the finding of liability for breach of a warranty implied under s. 15 of the Sale of Goods Act, R.S.N.B. 1973, c. S-1, as well as the damages award to the Meerssemans. The New Brunswick Court of Appeal dismissed the appeal on both grounds.
Read the decision at: Atlantic Potato Distributors Ltd. v. Meersseman.
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