Redpath Industries Ltd. v. Federal Calumet ( The )
T-1051-90
Rothstein J.
23/4/93
26 pp.
Claim for damages to portion of cargo of raw bulk sugar shipped from Australia to Toronto aboard vessel owned by defendant Federal Pacific (Liberia) Ltd. -- Plaintiff's quantum of damages only issue for Court to decide -- Agreement between parties' surveyors 15% of original quantity of raw sugar placed in no. 1 hold sound and 85% damaged -- Contract providing no sugar below 96 degrees to be loaded -- Damaged sugar in no. 1 hold having polarity of 93.39 degrees, sound sugar having polarity of 98.72 degrees -- Assessment of damages in case of cargo damaged at sea based on calculation of difference between Arrived Sound Market Value (ASMV) and Arrived Damaged Market Value (ADMV) of cargo -- Injured party required to mitigate damages -- Plaintiff's calculations and approach not applying formula correctly -- Rules of London Sugar Association objective means for establishing market value, at date of arrival, of sugar with polarity of 93.39 degrees -- Application of premiums and discounts on United Kingdom scale of London Rules to determine difference in value of sugar attributable to reduced polarity-Difference between ASMV of $738,352.40 and ADMV of $649,186.73 being $89,165.69 -- Plaintiff having complied with duty to mitigate in processing damaged sugar -- Full recognition given to reduced value of damaged sugar constituting plaintiff's damages after taking mitigation into account -- Incremental unloading costs of $31,071.34 plus surveyors's fees of $2,155.10 incurred by plaintiff and allowed -- Incremental processing costs of $5,000 also allowed for total damages of $127,392.13 -- Issue of estoppel raised by counsel for plaintiff, based on agreement by defendants' surveyor with 50% depreciation figure -- Essence of estoppel representation by words or conduct inducing detrimental reliance -- Redpath not acting to own detriment in reliance upon surveyor's actions at meeting of June 22, 1989 -- Nothing in material before Court claiming estoppel or acquiescence against vessel owners or underwriters -- Indication by defendants' surveyor 50% figure fair and reasonable not amounting to estoppel-Plaintiff compensated for risk associated with processing of damaged sugar -- Action allowed for $127,392.13 plus interest compounded semi-annually.