Supreme Court of Canada
Restaurants Nouvelle-Orléans Inc. v. Roynat Ltd., [1978] 1 S.C.R. 969
Date: 1977-11-03
Les Restaurants La Nouvelle-Orléans Inc. (Plaintiff) Appellant;
and
Roynat Limited (Defendant) Respondent.
1977: November 3.
Present: Laskin C.J. and Pigeon, Dickson, Beetz and Pratte JJ.
ON APPEAL FROM THE COURT OF APPEAL FOR QUEBEC
Contracts—Agreement terminating a loan contract—Compensation paid for early repayment—Unreasonable, excessive and exorbitant cost—Not a financial obligation resulting from a loan of money—Not a transaction—Restrictive application of art. 1040c.—Civil Code, arts. 1040c, 1918.
APPEAL against a decision of the Court of Appeal of Quebec[1] reversing a judgment of the Superior Court reducing the amount of the compensation. Appeal dismissed.
Lucien de Blois, for the appellant.
J.G. Chamberland, for the respondent.
The judgment of the Court was delivered orally by
THE CHIEF JUSTICE—It will not be necessary to hear you, Mr. Chamberland. We are all of the opinion that the Court of Appeal did not err in holding that the payment of $148,887 on December 8, 1971, was not made in fulfilment of a financial obligation resulting from a loan of money. Consequently, the appeal is dismissed with costs.
Appeal dismissed with costs.
Solicitors for the appellant: St-Hilaire, de Blois, Leclerc, Gingras, Delage & Leblanc, Quebec City.
Solicitors for the respondent: Ogilvy, Montgomery, Renault, Clarke, Kirkpatrick, Hannon & Howard, Montreal.