Pitt v. Dickson

Pitt v. Dickson

Because the appellant entered into the compromise while ignorant of the respondent’s fraud, the compromise did not preclude recovery against the respondent; the respondent is liable for the loss caused by his fraudulent misrepresentations, measured by the difference between par value and market value at the date of the compromise.

Citation
(1909) 42 SCR 478
Parties
Plaintiff/appellant: Ernest Pitt; Defendant/respondent: J.P. Dickson
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 December 1909
Procedural Posture
Civil Appeal (action for Deceit) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario; Final Decision on Appeal
Outcome
Appeal allowed; judgment of Court of Appeal reversed; judgment of trial judge restored.
Legal Topics
Deceit, Fraudulent Misrepresentation, Fiduciary Duty of Agent, Settlement and Compromise, Damages
Source Language
English
Tort Agency Contract Equity Deceit Fraudulent Misrepresentation Fiduciary Duty of Agent Settlement and Compromise +1 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 4 Authorities cited 4 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Ernest Pitt

Plaintiff/appellant

J.P. Dickson

Defendant/respondent

Procedural Posture

Civil Appeal (action for Deceit) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario; Final Decision on Appeal

Legal Issues

  1. 1 Whether a compromise made while ignorant of the defendant’s fraud bars a subsequent action against the fraudster
  2. 2 Whether settlement with an assignee/principal releases the agent who committed the fraud
  3. 3 Whether damages claimed arise naturally from the defendant’s misrepresentation or from the plaintiff’s subsequent conduct

Ratio Decidendi

Because the appellant entered into the compromise while ignorant of the respondent’s fraud, the compromise did not preclude recovery against the respondent; the respondent is liable for the loss caused by his fraudulent misrepresentations, measured by the difference between par value and market value at the date of the compromise.

Court Disposition

Appeal allowed; judgment of Court of Appeal reversed; judgment of trial judge restored.

Orders

  • Appeal allowed with costs
  • Judgment of the trial court restored (verdict for plaintiff)