Starrs v. Cosgrave Brewing and Malting Company of Toronto

Starrs v. Cosgrave Brewing and Malting Company of Toronto

The bond was given to the specific partnership composed of Patrick, John and Lawrence Cosgrave; the death of Patrick dissolved that firm and terminated the suretyship as to subsequent dealings, so the guarantor was not liable for goods sold after the death absent an express agreement to continue the guarantee to a new firm.

Citation
(1886) 12 SCR 571
Parties
Defendant/appellant: Michael Starrs; Plaintiffs/respondents: The Cosgrave Brewing and Malting Company of Toronto; Original Partners (cosgrave & Sons) / Obligees Under Bond: Patrick Cosgrave; John Cosgrave; Lawrence Joseph Cosgrave; Principal Debtor: Michael Quinn
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
9 April 1886
Procedural Posture
Civil Appeal (suretyship/partnership) / Decision on Appeal to the Supreme Court of Canada (final)
Outcome
Appeal allowed with costs; judgment for appellant reinstated
Legal Topics
Continuing Guarantee, Death of Partner and Dissolution of Firm, Construction of Guarantee Instrument, Extension of Time and Discharge of Surety
Source Language
English
Suretyship Partnership Law Contract Law Commercial Law Continuing Guarantee Death of Partner and Dissolution of Firm Construction of Guarantee Instrument Extension of Time and Discharge of Surety

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 3 Authorities cited 10 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Michael Starrs

Defendant/appellant

The Cosgrave Brewing and Malting Company of Toronto

Plaintiffs/respondents

Patrick Cosgrave; John Cosgrave; Lawrence Joseph Cosgrave

Original Partners (cosgrave & Sons) / Obligees Under Bond

Michael Quinn

Principal Debtor

Procedural Posture

Civil Appeal (suretyship/partnership) / Decision on Appeal to the Supreme Court of Canada (final)

Legal Issues

  1. 1 Whether the death of a partner (Patrick Cosgrave) dissolved the partnership and thereby terminated a continuing guarantee given to the firm
  2. 2 Whether the guarantor remained liable to successors or to persons who thereafter constituted the firm under the same name
  3. 3 Whether extensions of time or renewals of debtor's notes discharged the surety

Ratio Decidendi

The bond was given to the specific partnership composed of Patrick, John and Lawrence Cosgrave; the death of Patrick dissolved that firm and terminated the suretyship as to subsequent dealings, so the guarantor was not liable for goods sold after the death absent an express agreement to continue the guarantee to a new firm.

Court Disposition

Appeal allowed with costs; judgment for appellant reinstated

Orders

  • Appeal allowed with costs
  • Judgment of the Divisional Court for the defendant (appellant) reinstated; respondents' action dismissed as to sales after death of Patrick Cosgrave