Donald H. Bain Ltd. v. Maddison

Donald H. Bain Ltd. v. Maddison

Evidence of corrupt inducement or illegality not pleaded may be excluded; the court will treat a contract as unenforceable for illegality only when the illegality plainly appears from the plaintiff's own evidence or the full factual setting is before the court, otherwise the defendant must plead the defence to give fair notice.

Citation
[1930] SCR 299
Parties
Defendant/appellant: Donald H. Bain Limited; Plaintiff/respondent: H. W. J. Maddison
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
4 November 1929
Procedural Posture
Contract (sale of Goods) / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia
Outcome
Appeal dismissed; judgment of the Court of Appeal for British Columbia affirmed.
Legal Topics
Breach of Contract, Sale of Goods, Pleading, Illegality, Fraud, Admissibility of Evidence, Notice of Defence
Source Language
English
Contract Evidence Civil Procedure Breach of Contract Sale of Goods Pleading Illegality Fraud +2 more

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Parties

Donald H. Bain Limited

Defendant/appellant

H. W. J. Maddison

Plaintiff/respondent

Procedural Posture

Contract (sale of Goods) / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia

Legal Issues

  1. 1 Whether evidence of a corrupt inducement (bribe/conspiracy) is admissible when not pleaded by defendant
  2. 2 Whether a court may declare a contract unenforceable for illegality when illegality does not plainly appear from plaintiff's own evidence
  3. 3 Whether the trial judge erred in striking out/excluding evidence and refusing amendment

Ratio Decidendi

Evidence of corrupt inducement or illegality not pleaded may be excluded; the court will treat a contract as unenforceable for illegality only when the illegality plainly appears from the plaintiff's own evidence or the full factual setting is before the court, otherwise the defendant must plead the defence to give fair notice.

Court Disposition

Appeal dismissed; judgment of the Court of Appeal for British Columbia affirmed.

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Appeal for British Columbia (affirming trial judgment awarding damages to respondent) affirmed