A. R. Williams Machinery Co. Ltd. v. Moore

A. R. Williams Machinery Co. Ltd. v. Moore

The plaintiffs obtained exactly the contractual item they requested — the four receipted lien agreements — and there was no fraud, misrepresentation or warranty that would nullify the consideration; accordingly there was no failure of consideration and the plaintiffs could not recover the $1,003.09. The drag-net clause should be construed narrowly to apply to conditional orders only. The trial judge's factual findings on these matters should be restored and the Nova Scotia en banc judgment reversed.

Citation
[1926] SCR 692
Parties
Defendant/appellant: A. R. Williams Machinery Co. Ltd.; Plaintiffs/respondents: John T. Moore and James Murphy (Moore & Murphy)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 October 1926
Procedural Posture
Appeal / On Appeal From Supreme Court of Nova Scotia (in Banco) to Supreme Court of Canada
Outcome
Appeal allowed; judgment of trial court restored; judgment of Supreme Court of Nova Scotia in banco reversed.
Legal Topics
Sale of Goods, Lien Agreements, Bills of Sale, Drag Net Clause, Appropriation of Payments, Failure of Consideration, Replevin
Source Language
English
Contract Bankruptcy Property Secured Transactions Sale of Goods Lien Agreements Bills of Sale Drag Net Clause +3 more

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Parties

A. R. Williams Machinery Co. Ltd.

Defendant/appellant

John T. Moore and James Murphy (Moore & Murphy)

Plaintiffs/respondents

Procedural Posture

Appeal / On Appeal From Supreme Court of Nova Scotia (in Banco) to Supreme Court of Canada

Legal Issues

  1. 1 Whether there was total failure of consideration for the $1,003.09 paid by plaintiffs
  2. 2 Proper interpretation of the lien (bill of sale) agreements and the drag-net clause
  3. 3 Whether plaintiffs received the contractual bargain (receipted lien agreements)

Ratio Decidendi

The plaintiffs obtained exactly the contractual item they requested — the four receipted lien agreements — and there was no fraud, misrepresentation or warranty that would nullify the consideration; accordingly there was no failure of consideration and the plaintiffs could not recover the $1,003.09. The drag-net clause should be construed narrowly to apply to conditional orders only. The trial judge's factual findings on these matters should be restored and the Nova Scotia en banc judgment reversed.

Court Disposition

Appeal allowed; judgment of trial court restored; judgment of Supreme Court of Nova Scotia in banco reversed.

Orders

  • Appeal allowed and judgment of trial judge restored
  • Judgment of Supreme Court of Nova Scotia in banco reversed