Case information

Torts — Strict liability torts — Conversion — Whether strict liability torts including conversion require proof that damages are causally connected to defendant’s actions — Whether separate tortfeasors who caused divisible loss to property liable for entire loss.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Mr. Horne hired Mr. Demars to remove equipment owned by Mr. Koeneman from his property, render it as scrap and sell it, splitting the proceeds equally with Mr. Horne. The buyer, Evraz Inc. NA Canada and Evraz Materials Recycling, Inc., carrying on business under the name of General Scrap Partnership (collectively, “Evraz”), paid Mr. Demars, who paid half of the proceeds to Mr. Horne. Upon discovering the equipment missing, Mr. Koeneman reported its disappearance to the police. Mr. Horne was charged with theft and pled guilty. He was ordered to pay Mr. Koeneman restitution representing the equipment’s “scrap value”.

Mr. Koeneman sued Mr. Horne and Evraz for conversion, claiming contribution and indemnity from Mr. Demars and Mr. Horne. He sought damages based on the equipment’s full pre-scrap value.

The trial judge found that Mr. Koeneman had established a possessory right to the equipment for the purpose of his claim in conversion. and that Mr. Horne, Mr. Demars and Evraz were liable for the tort of conversion. The Court of Appeal dismissed Evraz’s appeal and Mr. Horne’s cross-appeal, except in respect of the finding of joint and several liability. It held that Evraz, Mr. Demars and Mr. Horne were each independently liable to Mr. Koeneman for the damages assessed by the trial judge.