Ross v. Chandler

Ross v. Chandler

Majority: McRae and Chandler were acting within authority to realize the partnership cheque; the Imperial Bank received the cheque and its proceeds in good faith without notice or sufficient grounds for inquiry and therefore obtained good title; the bank is not liable to Ross and the appeal is dismissed.

Citation
(1911) 45 SCR 127
Parties
Appellant / Plaintiff: John Ross; Respondent / Defendant: Walter Howard Chandler; Respondent / Defendant: John A. McRae; Respondent / Defendant: The Imperial Bank of Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
3 October 1911
Procedural Posture
Contract Partnership & Banking Dispute on Appeal / On Appeal to the Supreme Court of Canada; Final Judgment
Outcome
Appeal dismissed; judgment for the respondents (Imperial Bank, Chandler and McRae) affirmed.
Legal Topics
Notice to Banker, Inquiry Obligation, Holder in Due Course, Misapplication of Partnership Funds, Authority of Partner to Indorse, Banker’s Duty to Customer Vs. Third Parties
Source Language
English
Partnership Agency Banking Negotiable Instruments Trusts/equity Contract Notice to Banker Inquiry Obligation +4 more

Case Brief

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Parties

John Ross

Appellant / Plaintiff

Walter Howard Chandler

Respondent / Defendant

John A. McRae

Respondent / Defendant

The Imperial Bank of Canada

Respondent / Defendant

Procedural Posture

Contract Partnership & Banking Dispute on Appeal / On Appeal to the Supreme Court of Canada; Final Judgment

Legal Issues

  1. 1 Whether partners had authority to indorse and convert partnership cheque
  2. 2 Whether bank had notice or must have inquired into intended misapplication of funds
  3. 3 Whether bank acquired a good title/was holder in due course and therefore not liable

Ratio Decidendi

Majority: McRae and Chandler were acting within authority to realize the partnership cheque; the Imperial Bank received the cheque and its proceeds in good faith without notice or sufficient grounds for inquiry and therefore obtained good title; the bank is not liable to Ross and the appeal is dismissed.

Court Disposition

Appeal dismissed; judgment for the respondents (Imperial Bank, Chandler and McRae) affirmed.

Orders

  • Appeal dismissed with costs