Maloney v. Campbell

Maloney v. Campbell

The obligation of a purchaser to indemnify his vendor against the vendor's personal covenant for payment of a mortgage is assignable prior to suit; when assigned to a person entitled to recover the mortgage debt the assignee obtains a direct right of action against the purchaser, and allowing such assignment simplifies remedy and is consistent with legal principle.

Citation
(1897) 28 SCR 228
Parties
Appellant / Defendant: John Maloney; Respondent / Plaintiff: Elizabeth Prudence Campbell
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
9 December 1897
Procedural Posture
Foreclosure / Action for Indemnity / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal dismissed with costs.
Legal Topics
Priorities and Hypothecs, Assignment of Choses in Action, Indemnity, Suretyship, Foreclosure
Source Language
English
Property Law Contract Law Equity Civil Procedure Priorities and Hypothecs Assignment of Choses in Action Indemnity Suretyship +1 more

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Parties

John Maloney

Appellant / Defendant

Elizabeth Prudence Campbell

Respondent / Plaintiff

Procedural Posture

Foreclosure / Action for Indemnity / Appeal to Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether an obligation of a purchaser to indemnify a vendor against a personal covenant for payment of a mortgage is assignable prior to suit
  2. 2 Whether an assignee entitled to recover the mortgage debt obtains a direct right of action against the purchaser
  3. 3 Whether a mere possible or implied obligation is personal and therefore non‑assignable

Ratio Decidendi

The obligation of a purchaser to indemnify his vendor against the vendor's personal covenant for payment of a mortgage is assignable prior to suit; when assigned to a person entitled to recover the mortgage debt the assignee obtains a direct right of action against the purchaser, and allowing such assignment simplifies remedy and is consistent with legal principle.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.