Proulx v. Bank of Montreal

Proulx v. Bank of Montreal

The bank failed to prove satisfactorily the application of the October 23, 1964 deposit; the manager converted $1,000 to his wife’s use and the bank’s books are incomplete regarding a $2,500 deduction attributed to a different 'Jacques Proulx' note; therefore the bank’s claim for $3,000 cannot be sustained and must be set off against proven improper charges, permitting a partial allowance of the cross-demand.

Citation
[1974] SCR 762
Parties
Defendant Appellant: Armand Proulx; Plaintiff Respondent: Bank of Montreal
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
2 April 1973
Procedural Posture
Collection / Appeal to the Supreme Court of Canada From Court of Queen's Bench, Appeal Side, Quebec
Outcome
Appeal allowed in part; judgments below reversed in part; respondent's action dismissed; cross-demand allowed in part.
Legal Topics
Unwarranted Deduction From Deposit, Conversion by Bank Manager, Bank Records and Proof of Application of Funds, Admissibility and Probative Value of Passbook Under Civil Code Art.1234, Set Off and Counterclaims
Source Language
English
Banking Civil Procedure Evidence Property (conversion) Unwarranted Deduction From Deposit Conversion by Bank Manager Bank Records and Proof of Application of Funds Admissibility and Probative Value of Passbook Under Civil Code Art.1234 +1 more

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Parties

Armand Proulx

Defendant Appellant

Bank of Montreal

Plaintiff Respondent

Procedural Posture

Collection / Appeal to the Supreme Court of Canada From Court of Queen's Bench, Appeal Side, Quebec

Legal Issues

  1. 1 Whether the bank proved that deposited cheques were credited to the appellant’s accounts and applied to his debts
  2. 2 Whether the bank manager converted funds (payment to his wife) without appellant’s knowledge
  3. 3 Whether the passbook entry for an alleged cash deposit barred testimonial evidence under Civil Code art.1234

Ratio Decidendi

The bank failed to prove satisfactorily the application of the October 23, 1964 deposit; the manager converted $1,000 to his wife’s use and the bank’s books are incomplete regarding a $2,500 deduction attributed to a different 'Jacques Proulx' note; therefore the bank’s claim for $3,000 cannot be sustained and must be set off against proven improper charges, permitting a partial allowance of the cross-demand.

Court Disposition

Appeal allowed in part; judgments below reversed in part; respondent's action dismissed; cross-demand allowed in part.

Orders

  • Respondent's action dismissed.
  • Cross-demand allowed for $500 with interest from May 12, 1967.