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Mr. and Mrs. Lacroix purchased a fireplace insert from Dan's Hearth Shop. Dan's was the only local distributor and installer of such units in the town in which the Lacroix's lived. Dan's supplied the unit with the requisite chimney pieces and also performed the installation. Within a month, the Lacroix's revisited Dan's shop to complain about the performance of the fireplace. In particular, they complained that the unit was prone to chimney fires. Dan came to the Lacroix's home to inspect the unit but could not find any evidence of chimney fires. He further advised the Lacroix's to burn only dry wood in the insert and to have the chimney cleaned.
On several other occasions, the Lacroix's complained to Dan about chimney fires and eventually demanded their money back. Dan refused, and claimed that the fault was not in the fireplace but in the Lacroix's failure to operate it properly and to have the chimney cleaned.
The following week Mrs. Lacroix placed the following advertisement in the local newspaper:
'FIREPLACE INSERT - Comes equipped with rusting steel flue connector. Locally purchased, installed by local vendor, used only 3 months. Poor quality material and workmanship. Has proven record of chimney fires. Brass kettle will be thrown in. Phone 97-62734 after 5 p.m.'
Discuss the arguments which both sides might raise if Dan's Hearth Shop took legal action against the Lacroix's. Render a decision.
C.C.L.T. 37 (B.C.S.C.), this case examines both the torts of libel and slander of goods. Dan's arguments will point out that the Lacroix's language in the advertisement made it clear that they were less interested in selling the fireplace than in publicising its allegedly dangerous deficiencies and the poor quality of material and workmanship of the "local vendor" who installed it. Any reasonable person reading the advertisement would conclude that it referred to Dan and was maliciously intended to injure the reputation of his business
Dan may further argue that the untrue statements made by the Lacroixes concerning his goods and business practices constitute slander of goods (as they may be highly injurious to his business).
The Lacroixes in their defence may argue that the truth of their statements is a full defence to Dan's claims or, at least, that the statements were made on facts which they believed to be true. As such there is neither libel nor slander of goods but rather, a fair statement regarding their experience with Dan.
The court in its decision held on the basis of other facts that there was insufficient evidence suggesting that the average reader would interpret the advertisement as referring to the plaintiff's business.
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