Chalmers v. Machray

Chalmers v. Machray

The appeal was dismissed because the plaintiff failed to establish that the defendant solicitors had notice or a legal obligation to retain the sale proceeds for the plaintiff's claimed commission, and therefore the solicitors were not liable for the unpaid commission when they applied funds to rent and encumbrances.

Citation
(1917) 55 SCR 612
Parties
Appellant/plaintiff: Chalmers; Respondent/defendant (solicitors for Campbell): Machray
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 June 1917
Procedural Posture
Civil Appeal Concerning Sale/commission and Alleged Liability of Solicitors / On Appeal From the Court of Appeal for Manitoba to the Supreme Court of Canada; Appeal Dismissed With Costs
Outcome
Appeal dismissed with costs
Legal Topics
Commission, Receipt by Agent, Notice, Priority of Payment, Liability of Solicitors
Source Language
English
Sale Agency Property Civil Procedure Equity Commission Receipt by Agent Notice +2 more

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Parties

Chalmers

Appellant/plaintiff

Machray

Respondent/defendant (solicitors for Campbell)

Procedural Posture

Civil Appeal Concerning Sale/commission and Alleged Liability of Solicitors / On Appeal From the Court of Appeal for Manitoba to the Supreme Court of Canada; Appeal Dismissed With Costs

Legal Issues

  1. 1 Whether a plaintiff who obtained judgment for a commission may sue the purchaser's solicitor who received part of the sale proceeds to recover the unpaid commission
  2. 2 Whether the defendant solicitors were liable for funds paid to satisfy rent and incumbrances where a third party claims an equitable interest or lien
  3. 3 What proof of notice or knowledge is required to impose liability on recipients of sale proceeds

Ratio Decidendi

The appeal was dismissed because the plaintiff failed to establish that the defendant solicitors had notice or a legal obligation to retain the sale proceeds for the plaintiff's claimed commission, and therefore the solicitors were not liable for the unpaid commission when they applied funds to rent and encumbrances.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs