Grant v. Scott

Grant v. Scott

Under section 131 of the Bills of Exchange Act, a person who signs a promissory note otherwise than as drawer or acceptor incurs the liabilities of an indorser to a holder in due course; applying Robinson v. Mann the appellant who signed above the payee was liable as an indorser and the appeal must be dismissed.

Citation
(1919) 59 SCR 227
Parties
Appellant/defendant: J. Glen Grant; Respondent/plaintiff: Leonard Scott
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
10 November 1919
Procedural Posture
Appeal (contract/negotiable Instruments) / Appeal to the Supreme Court of Canada From the Supreme Court of Nova Scotia
Outcome
Appeal dismissed with costs; judgment of the Supreme Court of Nova Scotia affirmed.
Legal Topics
Promissory Note, Indorser Liability, Holder in Due Course, Statutory Interpretation, Precedent/stare Decisis
Source Language
English
Contract Negotiable Instruments Commercial Law Banking Law Promissory Note Indorser Liability Holder in Due Course Statutory Interpretation +1 more

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Parties

J. Glen Grant

Appellant/defendant

Leonard Scott

Respondent/plaintiff

Procedural Posture

Appeal (contract/negotiable Instruments) / Appeal to the Supreme Court of Canada From the Supreme Court of Nova Scotia

Legal Issues

  1. 1 Whether a person who signs a promissory note otherwise than as drawer or acceptor incurs liability as an indorser to the payee
  2. 2 Whether the payee was a holder in due course and thus entitled to hold the signer liable
  3. 3 Whether the prior decision Robinson v. Mann governs the present facts

Ratio Decidendi

Under section 131 of the Bills of Exchange Act, a person who signs a promissory note otherwise than as drawer or acceptor incurs the liabilities of an indorser to a holder in due course; applying Robinson v. Mann the appellant who signed above the payee was liable as an indorser and the appeal must be dismissed.

Court Disposition

Appeal dismissed with costs; judgment of the Supreme Court of Nova Scotia affirmed.

Orders

  • Appeal dismissed with costs
  • Judgment of the Supreme Court of Nova Scotia (52 N.S. Rep. 360) affirmed