Bridges v. Classic Sports Tours LTD 2004bcpc366
Bridges v. Classic Sports Tours LTD 2004bcpc366
Date: 20040930
Registry: Vancouver
BETWEEN:
CLAIMANT
AND:
DEFENDANT
OF THE
[2] In 2001 the Claimant learned that the Defendant was promoting a golf holiday called the
[3] Keith Westover, a golf pro known to the Claimant, urged the Claimant to take the
package and join his foursome. The Claimant sent a cheque payable to Mr. Westover for
$3,303.27 who then registered the Claimant for the holiday package. The Defendant
acknowledged the payment on behalf of the Claimant by sending to the Claimant a confirmation
that he was registered to travel to Mexico departing on November 9, 2001 and returning on
November 16. The Claimant also purchased additional golf practice rounds for $442.75, for a total
investment of $3,746.02.
[4] Unfortunately for all concerned, on November 8, 2001 Canada 3000 obtained an order of
the Ontario Superior Court of Justice granting it protection under the Companies’ Creditors
Arrangement Act, R.S.C. 1985, c. C-36: see Re Canada 3000 Inc. 235 D.L.R. (4th) 618 for further
details. The effect of this was a grounding of all Canada 3000 flights, including the flight on which
the Claimant was booked to fly to Mexico on November 9, 2001.
[5] Mr. Miles Desharnais, owner of the Defendant company, testified that he was at the
airport when his party learned that the flight would not proceed. He urged the stranded travellers
to rebook their flights to Mexico through other carriers, and about one half of the group managed
to do that either that day or the following day. He testified that the air fare cost for alternative
travel was about $550. In Exhibit 9, it is noted that the air and taxes sought to be refunded from
Canada 3000 was $623.
[6] Mr. Desharnais took a later flight via Los Angeles arriving at the Isla Navidad destination
where the golf holiday took place, with some minor modifications. He said that he arranged for the
resort to provide a hotel and golf credit to be used within one year for those who did not arrive by
alternative travel arrangements.
[7] Price Waterhouse was appointed to administer the claims of customers and creditors
against Canada 3000’s trust account. Mr. Desharnais testified that he took steps to file a group
claim with the trustee on behalf of the stranded passengers, including the Claimant. He received
partial compensation from Price Waterhouse which came to about $300 per claimant on a pro
rata basis which he forwarded to the Claimant. The Claimant rejected this payment and sought
full compensation.
[8] As well, Mr. Desharnais urged the stranded passengers to file a claim with the Registrar
of Travel who administers the B.C. Travel Assurance Fund. He states that the Claimant has filed
such a claim, to his knowledge.
[9] It is the position of the Claimant that he is entitled to be fully compensated for the amount
paid to the Defendant for the golf holiday. The Defendant contends that it is not liable by reason
of the printed waiver, and is not otherwise liable under the contract.
[10] A starting point in this case is to determine the nature of the contract and its fundamental
terms which can be gleaned from the promotional brochure or pamphlet in evidence. It is my view
that under the contract the Defendant agreed to organize a golf holiday by arranging with various
suppliers to provide services to the registrants.
[11] The express terms of the contract, printed on the promotional brochure, are as follows:
Pertaining to Classic Sports Tours Ltd. and Pro Team Classic, the passenger
waives and releases Classic Sports Tours Ltd. and Pro Team Classic from any
loss, damage, expense, cost or injury, from any clause (sic) except the gross
negligence or wilful misconduct of Classic Sports Tours Ltd., incurred by the
passenger on any part of the tour. Classic Sports Tours Ltd. shall not be
responsible for any actions or inactions of its contracted suppliers. Classic Sports
Tours reserves the right to cancel, or modify in its sole discretion any part of the
tour and will, when it reasonably can do so, give notice to the passenger of any
material change in the tour. In the event that the tour is cancelled, Classic Sports
Tours Ltd. will repay to all passengers pro rata all monies returned to Classic
Sports Tours Ltd. by contracted suppliers in respect of the cancelled tour Classic
Sports Tours Ltd. reserves the right to charge for increases in land or air costs
that arise due to currency fluctuations or airfare increases that occur between
tariffs in effect as of January 31, 2001 and the final payment of the tour cost.
[12] The above provision protects the Defendant from any liability for the acts or omissions of
its contracted suppliers, one of which was Canada 3000 Inc. It also limits any compensation
payable to a claimant to a pro rata share of monies returned to the Defendant by the defaulting
supplier.
[13] It is clear that the Claimant used Mr. Westover as his agent to carry out the purchase
transaction. I accept and find that Mr. Westover, as a golf professional, would have received the
promotional brochure on which the details of the package are stated, and on which the fees
remitted by the Claimant are based. Mr. Westover did not testify at trial. I find that by using Mr.
Westover as his agent, the Claimant relied on the agent to bring to his attention any provisions of
the brochure which might affect the transaction. I find that the terms of the brochure were
reasonably disclosed to the Claimant through his agent.
[14] It is my further view that the decision of Lord Denning in Jarvis v. Swans Tours Ltd.,
[1973] Q.B. 233, [1973] 1 All E.R. 71 (C.A.) does not assist the Claimant. In Jarvis, the plaintiff
was induced to purchase a holiday based on misrepresentations in the holiday brochure issued
by the Defendant. The Defendant was found liable by reason of the misrepresentation, and the
plaintiff was awarded damages for mental distress caused by a ruined holiday.
[15] In this case, there was no misrepresentation in the brochure. Rather, the difficulty was
that one of the contracted suppliers, Canada 3000, could not provide transportation to Mexico. In
determining the contractual relationship between the Claimant and Defendant, I find that the
Defendant agreed to put together a holiday package for golf enthusiasts by contracting as their
agent with various suppliers. It is likely that the Defendant charged for this service which was
incorporated in the price of the package. However, in doing so, the Defendant did not assume
liability if the contractor defaulted in the provision of the goods and services. The limiting clause in
the brochure supports this interpretation.
[16] This analysis is further supported by the comments of the Ontario Court of Appeal in
Craven et al v. Strand Holidays (Canada) Ltd. 142 D.L.R. (3d) 31. In that case, a jury found the
Defendant Strand liable for damages and injuries suffered by the plaintiffs when their bus
overturned during a vacation in Colombia, South America which had been arranged by the
Defendant as tour operator. The Court of Appeal, in remitting the matter for a new trial,
commented as follows:
[17] I find that this analysis applies in the instant case. The Defendant did not agree to fly the
Claimant to Mexico. It contracted on the Claimant’s behalf with an air carrier, Canada 3000, for
provision of transportation services. There is no evidence that the Defendant did not exercise due
care in the selection of Canada 3000 as the carrier. I conclude that at the time the charter
booking was made several months before departure, the Defendant reasonably believed that the
airline was a competent contractor. I conclude therefore that the Defendant fulfilled its obligations
to retain a competent carrier and is not responsible under contract law for the loss caused to the
Claimant due to the grounding of Canada 3000 airplanes.
[18] I am further satisfied on the evidence that the Defendant has forwarded to the Claimant
his pro rata share of the monies received from Canada 3000’s trustee, as required under the
above limitation of liability.
[19] In the alternative, I conclude that the Claimant did not act reasonably to mitigate his
damages by finding alternative transportation to Mexico in order to use the lodging and golf
component of the package. I find that it would have cost about $650 in airfare, and $100 in
transfers and other costs for substitute travel to the destination. Deducting the $300 available
from the Canada 3000 trustee, had the Claimant been successful in this action his recovery
would have been limited to about $450.
[20] In summary, the Claimant has not proved on a balance of probabilities that the Defendant
breached a fundamental term of the contract. The claim is dismissed, with the Defendant’s filing
and service costs payable by the Claimant.
_____________________
H. Dhillon, P.C.J.