Brussels Steel Corp. v. The Queen, 86 DTC 6077, [1986] 1 CTC 180 (FCTD) -- summary under Compensation Payments

The taxpayer received $429,000, net of legal costs, in settlement of its action against a supplier of graded reinforcing steel rods for breach of its agreement to deliver 17,000 tons of such rods. Since the quantum of the taxpayer's claim was based on the profits it would have made on reselling the rods in the ordinary course of its business of trading in steel products, and since the non-delivery by the supplier did not materially impair or cripple the taxpayer's business, the receipt was a taxable profit.