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FWCA - Fur Trade. The North West Company LP v. Classic Furs Company Ltd.
In The North West Company LP v. Classic Furs Company Ltd. (Ont CA, 2025) the Ontario Court of Appeal gives some insight into the Canadian coyote fur trade:Factual background and findings of the trial judge
[4] The supply chain for raw (untanned or undressed) coyote furs in Canada involves trappers, fur buyers, dealers, and auction houses. The coyote fur buying season runs from November to March, and the optimum time to buy coyote furs is December, when coyote fur quality is at its peak. The market price for coyote furs is set at auction for lots of raw furs that are graded for quality, which is assessed according to colouration, thickness, size, and lack of damage. Furs are purchased either at the auctions in the winter and early spring, or from dealers. Dealers guard their sources for raw furs closely. Business practices in the industry tend to be informal, and it is not uncommon to conclude business dealings on a handshake.
[5] NWC carried on a fur trading business until 2019, purchasing furs directly from trappers in Canada and selling them to buyers. CF is a Canadian manufacturer that produces fur and leather products. During the relevant period, CF had an open order from Canada Goose to provide coyote fur trims for its parkas. This was a significant commercial opportunity for CF, and it sought to secure a reliable source of high quality furs.
[6] NWC and CF began commercial dealings with each other in 2010. In January 2010, CF purchased a sample of 10 furs, at $60 per unit. CF was pleased with the quality and purchased a total of 2,000 furs from NWC over the year. Jason White (NWC’s director of Inuit Art and Fur Marketing) and Cezar Gajos (CF’s President) then met up in late 2010 to discuss expanding the volume of business for 2011. A key issue at trial was whether a supply contract was formed at that meeting. The trial judge found that a contract was formed, and that the terms were that NWC would provide CF with 15,000 coyote furs at a price of $64 each. The trial judge found this was to their mutual advantage. NWC was obtaining a significant premium over the going market rate – then approximately $30 per unit – and CF was paying a premium to obtain a reliable source of quality product. The trial judge found that it was an implied term that the furs would be of sufficient quality to make strips of fur suitable for Canada Goose apparel, and that payment was due by January 2012. The trial judge also found that the supply contract was not exclusive, meaning that CF was free to purchase from other suppliers as well.
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