Gibb v. McMahon

Gibb v. McMahon

The letter from the non-resident co-trustee only authorized acceptance of the specific offer described and did not confer a general authority to sell to any purchaser; material changed circumstances occurred and should have been communicated to and approved by the non-consenting trustee before a sale could bind the trust; therefore the sale to the plaintiff was unauthorized and specific performance was denied.

Citation
(1906) 37 SCR 362
Parties
Appellant: Alexander Gibb; Respondent (trustee): Thomas Francis McMahon; Respondent (trustee): William Walsh; Respondent (trustee): Louis P. Walsh
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 April 1906
Procedural Posture
Trust — Specific Performance Appeal / Appeal to Supreme Court of Canada From Court of Appeal for Ontario (final Disposition)
Outcome
Appeal dismissed; judgment of Court of Appeal for Ontario restoring trial judgment for the defendants affirmed.
Legal Topics
Co Trustees, Delegation of Trust, Authority to Sell, Specific Performance, Notice and Communication Between Trustees
Source Language
English
Trusts Equity Property Contract Civil Procedure Co Trustees Delegation of Trust Authority to Sell +2 more

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Parties

Alexander Gibb

Appellant

Thomas Francis McMahon

Respondent (trustee)

William Walsh

Respondent (trustee)

Louis P. Walsh

Respondent (trustee)

Procedural Posture

Trust — Specific Performance Appeal / Appeal to Supreme Court of Canada From Court of Appeal for Ontario (final Disposition)

Legal Issues

  1. 1 Whether a co-trustee's letter consenting to acceptance of a particular offer constituted a general authority to sell to any purchaser for the same or a higher price
  2. 2 Whether subsequent changed circumstances required communication with and fresh consent from the non-resident co-trustee before a sale could bind the trust
  3. 3 Whether specific performance could be granted when one of several trustees had not consented

Ratio Decidendi

The letter from the non-resident co-trustee only authorized acceptance of the specific offer described and did not confer a general authority to sell to any purchaser; material changed circumstances occurred and should have been communicated to and approved by the non-consenting trustee before a sale could bind the trust; therefore the sale to the plaintiff was unauthorized and specific performance was denied.

Court Disposition

Appeal dismissed; judgment of Court of Appeal for Ontario restoring trial judgment for the defendants affirmed.

Orders

  • Appeal dismissed with costs.
  • Action for specific performance dismissed.