Hovey v. Whiting

Hovey v. Whiting

The appeal was dismissed: the High Court judgment on the interpleader issue was appealable; directors could properly execute a bona fide assignment of all corporate assets to trustees for equal distribution among creditors; the deed either did not fall within ch.119 or, assuming it did, complied with its registration and possession provisions and contained a sufficiently specific description of the property to satisfy s.23 R.S.O. ch.119, so the assignees' title prevailed against the execution creditors.

Citation
(1887) 14 SCR 515
Parties
Appellant (defendant): Albert Henry Hovey and Others; Respondent (plaintiff): Matthew Whiting and Others
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
14 March 1887
Procedural Posture
Interpleader Appeal / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario Arising From an Interpleader Issue Tried in the High Court of Justice
Outcome
Appeal dismissed with costs
Legal Topics
Directors' Powers, Assignment for Benefit of Creditors, Chattel Mortgage Act (r.s.o. Ch. 119), Interpleader Procedure, Description of Property in Bills of Sale, Change of Possession Requirements
Source Language
English
Commercial Law Corporate Law Property Law Civil Procedure Directors' Powers Assignment for Benefit of Creditors Chattel Mortgage Act (r.s.o. Ch. 119) Interpleader Procedure +2 more

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Parties

Albert Henry Hovey and Others

Appellant (defendant)

Matthew Whiting and Others

Respondent (plaintiff)

Procedural Posture

Interpleader Appeal / On Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario Arising From an Interpleader Issue Tried in the High Court of Justice

Legal Issues

  1. 1 Whether a judgment on an interpleader issue by a single judge of the High Court is appealable
  2. 2 Whether directors of a joint stock company may assign all company property to trustees for benefit of creditors without shareholder assent
  3. 3 Whether such an assignment falls within R.S.O. ch.119 (Chattel Mortgage/Bills of Sale)

Ratio Decidendi

The appeal was dismissed: the High Court judgment on the interpleader issue was appealable; directors could properly execute a bona fide assignment of all corporate assets to trustees for equal distribution among creditors; the deed either did not fall within ch.119 or, assuming it did, complied with its registration and possession provisions and contained a sufficiently specific description of the property to satisfy s.23 R.S.O. ch.119, so the assignees' title prevailed against the execution creditors.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Appeal for Ontario affirmed