Latreille v. Gouin

Latreille v. Gouin

The transaction was a single exchange of properties; a party cannot obtain partial rescission of only one deed and demand repayment of money instead of restitution of the property given in exchange. The correct remedy for rescission of an exchange is restitution of the property given in exchange, with damages available only where the property cannot be returned or the claimant is evicted (Art.1598 C.C.). Accordingly the Court affirmed the Court of King’s Bench and dismissed the appeal.

Citation
[1926] SCR 558
Parties
Appellant / Plaintiff: Amedee Latreille; Respondent / Defendant: Gedeon Gouin
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
14 June 1926
Procedural Posture
Civil Appeal (property Exchange Dispute) / Appeal to Supreme Court of Canada From Court of King’s Bench (appeal Side), Quebec
Outcome
Appeal dismissed; judgment of the Court of King’s Bench affirmed.
Legal Topics
Exchange (permuta) Vs Sale, Rescission of Contract, Misrepresentation, Eviction of Title, Restitution and Damages
Source Language
English
Property Law Contract Law Civil Procedure Remedies Exchange (permuta) Vs Sale Rescission of Contract Misrepresentation Eviction of Title +1 more

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Parties

Amedee Latreille

Appellant / Plaintiff

Gedeon Gouin

Respondent / Defendant

Procedural Posture

Civil Appeal (property Exchange Dispute) / Appeal to Supreme Court of Canada From Court of King’s Bench (appeal Side), Quebec

Legal Issues

  1. 1 Whether a party to an exchange can rescind only one deed of the simultaneous exchange and compel the other party to repay money instead of returning property
  2. 2 Whether alleged misrepresentations about a component of the exchanged property permit partial rescission
  3. 3 Proper remedies available for rescission of an exchange (restitution of property vs monetary compensation)

Ratio Decidendi

The transaction was a single exchange of properties; a party cannot obtain partial rescission of only one deed and demand repayment of money instead of restitution of the property given in exchange. The correct remedy for rescission of an exchange is restitution of the property given in exchange, with damages available only where the property cannot be returned or the claimant is evicted (Art.1598 C.C.). Accordingly the Court affirmed the Court of King’s Bench and dismissed the appeal.

Court Disposition

Appeal dismissed; judgment of the Court of King’s Bench affirmed.

Orders

  • Appeal dismissed with costs
  • Appellant to pay costs of the present appeal