United States Fidelity and Guaranty Co. v. The King

United States Fidelity and Guaranty Co. v. The King

On an equal division of the Supreme Court the judgment of the Court of Appeal was affirmed: the statutory bond in the prescribed form constituted enforceable security for succession duty as determined by the provincial authorities in connection with the grant of probate and the Crown may recover by action thereon;...

Source-derived case information.

Citation
(1922) 64 SCR 48
Parties
Appellant, Surety: United States Fidelity and Guaranty Company; Respondent, Plaintiff: His Majesty The King; Defendant, Executor and Sole Devisee: Lorenzo Joseph Quagliotti
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
31 May 1922
Procedural Posture
Appeal From Court of Appeal; Civil Action on Statutory Bond for Succession Duty / Appeal to Supreme Court of Canada (final Hearing)
Outcome
Judgment of the Court of Appeal affirmed on equal division of the Supreme Court of Canada; appeal dismissed
Legal Topics
Succession Duty, Interpretation of Statutory Bond, Meaning of 'coming Into the Hands', Executor Vs Devisee Liability, Registrar Powers and Valuation
Source Language
english
Estates Taxation Public Law Suretyship Succession Duty Interpretation of Statutory Bond Meaning of 'coming Into the Hands' Executor Vs Devisee Liability +1 more

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Summary, issues, holding and outcome

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Parties

United States Fidelity and Guaranty Company

Appellant, Surety

His Majesty The King

Respondent, Plaintiff

Lorenzo Joseph Quagliotti

Defendant, Executor and Sole Devisee

Procedural Posture

Appeal From Court of Appeal; Civil Action on Statutory Bond for Succession Duty / Appeal to Supreme Court of Canada (final Hearing)

Legal Issues

  1. 1 Whether a statutory probate bond in the form required by the Succession Duty Act binds the surety for succession duty on real estate devised to the applicant
  2. 2 Whether property is deemed to have 'come into the hands' of an executor where the devisee and executor are the same person and where the executor has statutory power to sell to pay duty
  3. 3 Whether the Auditor General's determination and granting of probate without appointment of a commissioner finally fixes the duty for purposes of enforcing the bond

Ratio Decidendi

On an equal division of the Supreme Court the judgment of the Court of Appeal was affirmed: the statutory bond in the prescribed form constituted enforceable security for succession duty as determined by the provincial authorities in connection with the grant of probate and the Crown may recover by action thereon; interpretation of whether realty 'came into the hands' of the executor was dispositive of the liability question and was the subject of differing judicial views but did not overturn the Court of Appeal result.

Court Disposition

Judgment of the Court of Appeal affirmed on equal division of the Supreme Court of Canada; appeal dismissed

Orders

  • Appeal dismissed without costs
  • Judgment for respondent on the statutory bond enforcing succession duty claim (as determined by Auditor General)