Prévost-Masson v. General Trust of Canada

Prévost-Masson v. General Trust of Canada

The Supreme Court held the accountant's professional liability was established and that the claimant sustained present and actual damage at the time of the erroneous discharge; the Civil Code does not permit treating the sums as indivisible obligations under art.1124, but the proper mechanism to govern concurrent debts from separate sources is obligation in solidum; accordingly the appellant is liable in solidum with 2639‑1565 Québec inc. for a maximum of $182,476.88 with interest at the legal rate and the additional indemnity under art.1078.1 C.C.L.C., and upon payment the appellant is subrogated to the respondent's rights against co‑debtors.

Citation
2001 SCC 87
Parties
Appellant (legal Representative of the Late Henri Masson): Thérèse Prévost‑Masson; Respondent (liquidator and Legal Representative of the Late Joseph Avila Perras): General Trust of Canada; Respondent/defendant (purchaser): 2639‑1565 Québec inc.; Respondent/defendant (shareholder/director): Mark Weinberg; Respondent/defendant (shareholder/director): Lucien Roy; Original Debtor (vendor Purchaser Chain): Les Immeubles Les Castels de Greenfield Park inc.; Original Surety/debtor: Alfred Céré; Original Surety/debtor: André Pelletier
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 December 2001
Procedural Posture
Civil Appeal (professional and Contractual Liability) / Appeal to the Supreme Court of Canada (judgment)
Outcome
Appeal allowed in part
Legal Topics
Chartered Accountant Professional Liability, Discharge of Debt, Indivisibility of Obligations, Obligation in Solidum, Causation and Damages, Interest and Indemnity Under Art.1078.1 C.c.l.c., Subrogation
Source Language
English
Civil Law Torts Contract Law Professional Liability Obligations Chartered Accountant Professional Liability Discharge of Debt Indivisibility of Obligations +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 17 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Thérèse Prévost‑Masson

Appellant (legal Representative of the Late Henri Masson)

General Trust of Canada

Respondent (liquidator and Legal Representative of the Late Joseph Avila Perras)

2639‑1565 Québec inc.

Respondent/defendant (purchaser)

Mark Weinberg

Respondent/defendant (shareholder/director)

Lucien Roy

Respondent/defendant (shareholder/director)

Les Immeubles Les Castels de Greenfield Park inc.

Original Debtor (vendor Purchaser Chain)

Alfred Céré

Original Surety/debtor

André Pelletier

Original Surety/debtor

Procedural Posture

Civil Appeal (professional and Contractual Liability) / Appeal to the Supreme Court of Canada (judgment)

Legal Issues

  1. 1 Whether the chartered accountant's professional liability was established
  2. 2 Whether damage and causation were present when the action against the professional was commenced
  3. 3 Whether creditor must exhaust remedies against debtors before suing professional adviser

Ratio Decidendi

The Supreme Court held the accountant's professional liability was established and that the claimant sustained present and actual damage at the time of the erroneous discharge; the Civil Code does not permit treating the sums as indivisible obligations under art.1124, but the proper mechanism to govern concurrent debts from separate sources is obligation in solidum; accordingly the appellant is liable in solidum with 2639‑1565 Québec inc. for a maximum of $182,476.88 with interest at the legal rate and the additional indemnity under art.1078.1 C.C.L.C., and upon payment the appellant is subrogated to the respondent's rights against co‑debtors.

Court Disposition

Appeal allowed in part

Orders

  • Appellant declared liable in solidum with 2639‑1565 Québec inc. for a maximum of 182476.88 CAD with interest at the legal rate and the additional indemnity under art.1078.1 C.C.L.C.
  • Upon payment of that amount appellant will be subrogated for an equivalent amount in the rights of the respondent against 2639‑1565 Québec inc. and any other party still indebted for the balance of the selling price