Hanson et al. v. Village of Grand'mère

Hanson et al. v. Village of Grand'mère

Majority: The by‑law and indorsement were ultra vires of the municipal corporation because the statutory requirements and limits governed municipal power to assume financial obligations were not satisfied; consequently the municipality was not bound to pay the debentures and the appeal was dismissed, affirming the lower courts.

Citation
(1902) 33 SCR 50
Parties
Appellant/plaintiff: Edwin Hanson et al.; Respondent/defendant: Village of Grand'Mère
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 October 1902
Procedural Posture
Civil Appeal (municipal Law) / Appeal to Supreme Court of Canada From Court of King's Bench, Province of Quebec; Final Judgment
Outcome
Appeal dismissed; judgment of the Court of King's Bench and Superior Court affirmed; costs to respondent.
Legal Topics
Ultra Vires, By Law Approval, Guarantee of Municipal Bonds, Liability of Municipality, Approval by Lieutenant‑governor‑in‑council, Bona Fide Holder Protection, Statutory Interpretation
Source Language
English
Municipal Law Municipal Finance Negotiable Instruments Public/administrative Law Contract Ultra Vires By Law Approval Guarantee of Municipal Bonds +4 more

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Parties

Edwin Hanson et al.

Appellant/plaintiff

Village of Grand'Mère

Respondent/defendant

Procedural Posture

Civil Appeal (municipal Law) / Appeal to Supreme Court of Canada From Court of King's Bench, Province of Quebec; Final Judgment

Legal Issues

  1. 1 Whether a municipal council had legal authority under 60 Vict. c. 78 ss.7 and 27 (Que.) to guarantee or indorse debentures issued by a private company
  2. 2 Whether the by‑law granting the franchise and endorsing debentures was intra vires or ultra vires of the municipal corporation
  3. 3 Whether statutory formalities (ratepayer approval and Lieutenant‑Governor‑in‑Council approval) required by statute had been complied with

Ratio Decidendi

Majority: The by‑law and indorsement were ultra vires of the municipal corporation because the statutory requirements and limits governed municipal power to assume financial obligations were not satisfied; consequently the municipality was not bound to pay the debentures and the appeal was dismissed, affirming the lower courts.

Court Disposition

Appeal dismissed; judgment of the Court of King's Bench and Superior Court affirmed; costs to respondent.

Orders

  • Appeal dismissed with costs