Farrell v. Lloyd

Farrell v. Lloyd

The Supreme Court affirmed the lower courts that the exchange was vitiated by error/fraud under Arts. 991-993 C.C.; the disproportion between the values exchanged and the circumstances established grounds for annulment, warranting dismissal of the appeal and maintenance of the respondent's action.

Citation
[1929] SCR 313
Parties
Defendant/appellant: Frank J. Farrell; Defendant/appellant: Another; Plaintiff/respondent: Dame Charlotte Lloyd
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 February 1929
Procedural Posture
Contract / Appeal to Supreme Court of Canada From Court of King's Bench, Quebec (final Disposition)
Outcome
Appeal dismissed with costs; judgment of Court of King's Bench and Superior Court affirmed; respondent's action maintained (annulment of transfers).
Legal Topics
Rescission, Error, Fraud, Exchange of Securities, Civil Code Articles 991 993
Source Language
English
Contract Civil Law Fraud Rescission Error Exchange of Securities Civil Code Articles 991 993

Case Brief

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Parties

Frank J. Farrell

Defendant/appellant

Another

Defendant/appellant

Dame Charlotte Lloyd

Plaintiff/respondent

Procedural Posture

Contract / Appeal to Supreme Court of Canada From Court of King's Bench, Quebec (final Disposition)

Legal Issues

  1. 1 Whether transfers of stocks and debentures could be annulled for error or fraud under Arts. 991-993 C.C.
  2. 2 Whether the exchange — respondent giving securities worth $9,405.55 for securities worth about $1,400 — was procured by error or fraud justifying rescission

Ratio Decidendi

The Supreme Court affirmed the lower courts that the exchange was vitiated by error/fraud under Arts. 991-993 C.C.; the disproportion between the values exchanged and the circumstances established grounds for annulment, warranting dismissal of the appeal and maintenance of the respondent's action.

Court Disposition

Appeal dismissed with costs; judgment of Court of King's Bench and Superior Court affirmed; respondent's action maintained (annulment of transfers).

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of King's Bench, appeal side affirmed