Standard Trusts Co. v. La Valley

Standard Trusts Co. v. La Valley

The document was not a promissory note because the clause permitting the allowance of credit for land sales commissions meant the promise was not unconditional and not for a sum certain; accordingly the document could not be enforced as a promissory note. Further, ss.101-103 of the Alberta Land Titles Act do not apply where the mortgagor's proprietary interest in the land had been extinguished and only personal liability remained.

Citation
[1931] SCR 595
Parties
Plaintiff/appellant: Standard Trusts Company; Defendant/respondent: Peter La Valley
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
12 June 1931
Procedural Posture
Appeal / Appeal to Supreme Court of Canada From Appellate Division of the Supreme Court of Alberta; New Trial Ordered
Outcome
Appeal allowed; new trial ordered.
Legal Topics
Definition of Promissory Note, Discharge by Allowance of Credit for Land Sales Commission, Transfer of Mortgages Under Land Titles Act Ss.101 103, Effect of Extinguished Mortgagor's Interest, Procedure — New Trial, Amendment and Discovery
Source Language
English
Bills of Exchange Promissory Notes Mortgage Law Land Titles Act (alberta) Definition of Promissory Note Discharge by Allowance of Credit for Land Sales Commission Transfer of Mortgages Under Land Titles Act Ss.101 103 Effect of Extinguished Mortgagor's Interest +1 more

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Parties

Standard Trusts Company

Plaintiff/appellant

Peter La Valley

Defendant/respondent

Procedural Posture

Appeal / Appeal to Supreme Court of Canada From Appellate Division of the Supreme Court of Alberta; New Trial Ordered

Legal Issues

  1. 1 Whether the document sued upon is a promissory note
  2. 2 Whether a clause permitting credit for land sales commissions prevents a promise from being unconditional and for a sum certain
  3. 3 Whether ss.101-103 of the Alberta Land Titles Act apply where the mortgagor's proprietary interest has been extinguished and only personal liability remains

Ratio Decidendi

The document was not a promissory note because the clause permitting the allowance of credit for land sales commissions meant the promise was not unconditional and not for a sum certain; accordingly the document could not be enforced as a promissory note. Further, ss.101-103 of the Alberta Land Titles Act do not apply where the mortgagor's proprietary interest in the land had been extinguished and only personal liability remained.

Court Disposition

Appeal allowed; new trial ordered.

Orders

  • New trial ordered.
  • Costs of all appeals and of the abortive trial to abide the result of the new trial.