Pearson v. Carpenter

Pearson v. Carpenter

Majority held the evidence established the Buffalo firm operated a bucket shop, Carpenter & Son acted as agents for that firm, the transaction was not completed until acceptance was notified in Toronto and thus was consummated in Toronto within s.201 of the Criminal Code; being an illegal wagering transaction plaintiffs could not recover. Additionally, if Carpenter & Son were agents of Pearson they lacked authority to advance monies beyond deposited margins without express instruction.

Citation
(1904) 35 SCR 380
Parties
Defendant Appellant: James Pearson; Plaintiff Respondent: Carpenter & Son
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
14 December 1904
Procedural Posture
Appeal to Supreme Court of Canada (civil) / On Appeal From Court of Appeal for Ontario; Final Appeal Decision
Outcome
Appeal allowed with costs
Legal Topics
Gambling/wagering in Securities and Commodities, Agent Authority and Advances, Illegality Defence Under Statute, Place of Contract Formation, Recovery on Promissory Note
Source Language
English

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Parties

James Pearson

Defendant Appellant

Carpenter & Son

Plaintiff Respondent

Procedural Posture

Appeal to Supreme Court of Canada (civil) / On Appeal From Court of Appeal for Ontario; Final Appeal Decision

  1. 1 Whether the transactions were real purchases or mere bucket‑shop wagers
  2. 2 Whether the transactions were consummated in Toronto and thus within s.201 of the Criminal Code
  3. 3 Whether Carpenter & Son acted as agents of the Buffalo firm or of Pearson

Ratio Decidendi

Majority held the evidence established the Buffalo firm operated a bucket shop, Carpenter & Son acted as agents for that firm, the transaction was not completed until acceptance was notified in Toronto and thus was consummated in Toronto within s.201 of the Criminal Code; being an illegal wagering transaction plaintiffs could not recover. Additionally, if Carpenter & Son were agents of Pearson they lacked authority to advance monies beyond deposited margins without express instruction.

Court Disposition

Appeal allowed with costs

Orders

  • Appeal allowed with costs