Brown v. Moore

Brown v. Moore

An agreement guaranteeing payment for intoxicating liquors sold contrary to the express prohibition of the Nova Scotia Liquor License Act 1895 is of no effect; where a statute both prohibits the conduct and prescribes penalties, contracts connected to that prohibited conduct are void and unenforceable.

Citation
(1902) 32 SCR 93
Parties
Plaintiff/appellant: William Brown; Defendant/respondent: John R. Moore; Principal Debtor: Jenkins
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
18 February 1902
Procedural Posture
Civil Appeal (contract/guarantee) / Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia; Final Hearing and Decision
Outcome
Appeal dismissed with costs
Legal Topics
Illegality of Contracts, Effect of Statutory Prohibition, Penalty Avoids Contract, Guarantee Validity
Source Language
English
Contract Law Statutory Interpretation Regulatory/penal Law Liquor Licensing Law Illegality of Contracts Effect of Statutory Prohibition Penalty Avoids Contract Guarantee Validity

Case Brief

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Parties

William Brown

Plaintiff/appellant

John R. Moore

Defendant/respondent

Jenkins

Principal Debtor

Procedural Posture

Civil Appeal (contract/guarantee) / Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia; Final Hearing and Decision

Legal Issues

  1. 1 Whether a written guarantee of payment for wholesale sales of intoxicating liquor made without the statutory licence is enforceable
  2. 2 Whether express statutory prohibition and accompanying penalties render contracts connected with the prohibited conduct void or unenforceable
  3. 3 Whether the statute was regulatory only or intended to invalidate contracts made in contravention

Ratio Decidendi

An agreement guaranteeing payment for intoxicating liquors sold contrary to the express prohibition of the Nova Scotia Liquor License Act 1895 is of no effect; where a statute both prohibits the conduct and prescribes penalties, contracts connected to that prohibited conduct are void and unenforceable.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs
  • Judgment of the Supreme Court of Nova Scotia en banc affirmed dismissing the plaintiff's action against the defendant Moore with costs