Pérodeau v. Hamill

Pérodeau v. Hamill

The appellant, though a nominal partner, was held to have given reasonable cause for belief he was a partner and is therefore liable to the third party; however the liability is a partnership liability governed by article 1854 C.C. and is in equal shares, so the appellant is liable for one-half of the loss, not the whole.

Citation
[1925] SCR 289
Parties
Appellant / Defendant: J. A. Pérodeau; Respondents / Plaintiffs: Dame J. Hamill and Others
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 March 1925
Procedural Posture
Appeal / Supreme Court of Canada on Appeal From Court of King's Bench, Province of Quebec
Outcome
Appeal allowed in part; judgment below varied to reduce appellant's liability to one-half of the claimed amount.
Legal Topics
Nominal Partnership, Liability of Partners, Joint Vs Joint and Several Liability, Mandate (agency), Civil Code Interpretation, Reimbursement of Client Funds
Source Language
English
Contract Partnership Professional Negligence Notarial Law Civil Liability Nominal Partnership Liability of Partners Joint Vs Joint and Several Liability +3 more

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Parties

J. A. Pérodeau

Appellant / Defendant

Dame J. Hamill and Others

Respondents / Plaintiffs

Procedural Posture

Appeal / Supreme Court of Canada on Appeal From Court of King's Bench, Province of Quebec

Legal Issues

  1. 1 Whether a nominal partner is liable to a third party who dealt with the firm in good faith and under the belief the nominal partner was a real partner
  2. 2 Whether the partner's liability is joint only (equal shares) or joint and several (whole) under the Civil Code
  3. 3 Whether articles of the Civil Code on mandate or partnership govern measure of liability

Ratio Decidendi

The appellant, though a nominal partner, was held to have given reasonable cause for belief he was a partner and is therefore liable to the third party; however the liability is a partnership liability governed by article 1854 C.C. and is in equal shares, so the appellant is liable for one-half of the loss, not the whole.

Court Disposition

Appeal allowed in part; judgment below varied to reduce appellant's liability to one-half of the claimed amount.

Orders

  • Appeal allowed in part.
  • Judgment of the Court of King's Bench varied by reducing the amount recoverable from the appellant by one-half.