Banque Nationale Canadienne v. Audet

Banque Nationale Canadienne v. Audet

The guarantees signed jointly and severally by the wife and husband, both shareholders, were void as to the wife under art.1301 C.C. because she had no personal interest and the obligation affected interests common to both (therefore given "avec et pour son mari"); the bank was not a creditor in good faith because it knew the material circumstances; a general authorization to "ester et plaider" in first instance that resulted in judgment for the wife sufficed to permit her to appear as respondent on appeal without new authorization.

Citation
[1931] SCR 293
Parties
Appellant/plaintiff: La Banque Canadienne Nationale; Respondent/defendant: Dame Albertine A. Audet
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
15 December 1930
Procedural Posture
Collection / Appeal (supreme Court of Canada)
Outcome
Appeal dismissed with costs; judgment below affirmed
Legal Topics
Capacity of Married Woman to Bind Herself, Authorization to Sue or Defend and to Appeal, Suretyship/cautionnement, Interpretation and Application of Quebec Civil Code Art.1301, Good Faith of Creditor, Burden of Proof
Source Language
English
Family Law Contract Law Commercial Law Civil Procedure Capacity of Married Woman to Bind Herself Authorization to Sue or Defend and to Appeal Suretyship/cautionnement Interpretation and Application of Quebec Civil Code Art.1301 +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

La Banque Canadienne Nationale

Appellant/plaintiff

Dame Albertine A. Audet

Respondent/defendant

Procedural Posture

Collection / Appeal (supreme Court of Canada)

Legal Issues

  1. 1 Whether a deed of guarantee signed by a married woman together with her husband as shareholders to secure company debts is valid as to the wife under art.1301 C.C.
  2. 2 Whether a general judicial authorization to a married woman to "ester et plaider" in first instance suffices for her to appear as respondent on appeal without a new authorization
  3. 3 Whether the creditor (bank) contracted in good faith so as to preserve rights under the 1904 amendment to art.1301 C.C.

Ratio Decidendi

The guarantees signed jointly and severally by the wife and husband, both shareholders, were void as to the wife under art.1301 C.C. because she had no personal interest and the obligation affected interests common to both (therefore given "avec et pour son mari"); the bank was not a creditor in good faith because it knew the material circumstances; a general authorization to "ester et plaider" in first instance that resulted in judgment for the wife sufficed to permit her to appear as respondent on appeal without new authorization.

Court Disposition

Appeal dismissed with costs; judgment below affirmed

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of King’s Bench (appeal side, Province of Quebec) and Superior Court affirmed