Storthoaks v. Mobil Oil Canada, Ltd.

Storthoaks v. Mobil Oil Canada, Ltd.

Mobil was entitled to recover the $31,163.95 overpayment because the accounting department paid under a bona fide mistake of fact; the knowledge of another corporate officer did not preclude recovery because that officer did not know the payments were erroneous; the Municipality failed to prove it had so altered its position or was estopped from repayment; appeal dismissed and repayment ordered.

Citation
[1976] 2 SCR 147
Parties
Defendant/appellant: Rural Municipality of Storthoaks; Plaintiff/respondent: Mobil Oil Canada, Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 April 1975
Procedural Posture
Civil Appeal (restitution/money Had and Received) / On Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan; Final Judgment
Outcome
Appeal dismissed with costs; judgment for respondent (Mobil) ordering recovery of the overpaid sum.
Legal Topics
Mistake of Fact, Recovery of Mistaken Payments, Money Had and Received, Estoppel and Change of Position, Surrender of Lease, Authorized Agent Knowledge
Source Language
English
Restitution Equity Property/lease Oil and Gas Law Civil Procedure Mistake of Fact Recovery of Mistaken Payments Money Had and Received +3 more

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Parties

Rural Municipality of Storthoaks

Defendant/appellant

Mobil Oil Canada, Ltd.

Plaintiff/respondent

Procedural Posture

Civil Appeal (restitution/money Had and Received) / On Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan; Final Judgment

Legal Issues

  1. 1 Whether payments made by a corporate accounting department under a mistake of fact are recoverable where another corporate agent had actual knowledge of the true facts
  2. 2 Whether Mobil validly surrendered parts of the lease after electing to pay compensatory royalties
  3. 3 Whether the Municipality altered its position such that repayment would be inequitable

Ratio Decidendi

Mobil was entitled to recover the $31,163.95 overpayment because the accounting department paid under a bona fide mistake of fact; the knowledge of another corporate officer did not preclude recovery because that officer did not know the payments were erroneous; the Municipality failed to prove it had so altered its position or was estopped from repayment; appeal dismissed and repayment ordered.

Court Disposition

Appeal dismissed with costs; judgment for respondent (Mobil) ordering recovery of the overpaid sum.

Orders

  • Appeal dismissed with costs.
  • Respondent entitled to recover $31,163.95 from the appellant; repayment ordered.