Fidelity Trust Co. of Ontario v. Purdom and Northern Life Assurance Co. of Canada

Fidelity Trust Co. of Ontario v. Purdom and Northern Life Assurance Co. of Canada

The Supreme Court dismissed the appellant's appeal, affirming the Appellate Division that the mortgage did not bind the plaintiff's beneficial interest under the declaration of trust, and that the mortgagee (Northern Life) was nevertheless entitled to indemnity and relief over against the party who executed the mortgage.

Citation
[1930] SCR 119
Parties
Defendant and Third Party, Appellant: Fidelity Trust Company of Ontario; Plaintiff, Respondent: Margaret Purdom; Defendant, Respondent: The Northern Life Assurance Company of Canada
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 June 1929
Procedural Posture
Appeal to Supreme Court of Canada / On Appeal From Appellate Division of the Supreme Court of Ontario; Judgment Reserved and Appeal Dismissed
Outcome
Appeal dismissed with costs
Legal Topics
Priorities and Hypothecs, Declaration of Trust Construction, Notice to Mortgagee, Indemnity Against Mortgagor
Source Language
English
Trusts Mortgages Property Law Equity Priorities and Hypothecs Declaration of Trust Construction Notice to Mortgagee Indemnity Against Mortgagor

Case Brief

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Parties

Fidelity Trust Company of Ontario

Defendant and Third Party, Appellant

Margaret Purdom

Plaintiff, Respondent

The Northern Life Assurance Company of Canada

Defendant, Respondent

Procedural Posture

Appeal to Supreme Court of Canada / On Appeal From Appellate Division of the Supreme Court of Ontario; Judgment Reserved and Appeal Dismissed

Legal Issues

  1. 1 Whether a mortgage to Northern Life bound the plaintiff's beneficial interest under a prior declaration of trust
  2. 2 Whether the mortgagor had power to encumber the plaintiff's trust interest
  3. 3 Effect of notice to the mortgagee on priority

Ratio Decidendi

The Supreme Court dismissed the appellant's appeal, affirming the Appellate Division that the mortgage did not bind the plaintiff's beneficial interest under the declaration of trust, and that the mortgagee (Northern Life) was nevertheless entitled to indemnity and relief over against the party who executed the mortgage.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs.
  • Affirmed Appellate Division declaration that the mortgage did not bind the plaintiff's interest and that Northern Life was entitled to indemnity and relief over against Fidelity Trust