Commercial Bank of Windsor v. Morrison

Commercial Bank of Windsor v. Morrison

The bank's title derived exclusively through its agent, who accepted the notes subject to the known conditional terms; because it was not established that the agent was actually implicated in fraud upon the bank, the agent's knowledge is imputed to the bank and the notes remain subject to the unfulfilled conditions, requiring the appeal to be dismissed.

Citation
(1902) 32 SCR 98
Parties
Appellant / Plaintiff: Commercial Bank of Windsor; Respondent / Defendant: Angus J. Morrison
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 February 1902
Procedural Posture
Collection / Appeal to the Supreme Court of Canada From the Supreme Court of Nova Scotia
Outcome
Appeal dismissed with costs.
Legal Topics
Conditional Indorsement, Constructive Notice, Principal Agent Knowledge, Escrow, Deceit
Source Language
English
Banking Agency Law Negotiable Instruments Commercial Law Fraud Conditional Indorsement Constructive Notice Principal Agent Knowledge +2 more

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Parties

Commercial Bank of Windsor

Appellant / Plaintiff

Angus J. Morrison

Respondent / Defendant

Procedural Posture

Collection / Appeal to the Supreme Court of Canada From the Supreme Court of Nova Scotia

Legal Issues

  1. 1 Whether a promissory note indorsed subject to a condition is enforceable when the condition remains unfulfilled
  2. 2 Whether notice or knowledge of an agent is imputable to the principal where the agent had an interest in concealing the condition but was not shown to be implicated in fraud
  3. 3 Whether the bank could enforce notes obtained through its agent who knew of the conditional indorsement

Ratio Decidendi

The bank's title derived exclusively through its agent, who accepted the notes subject to the known conditional terms; because it was not established that the agent was actually implicated in fraud upon the bank, the agent's knowledge is imputed to the bank and the notes remain subject to the unfulfilled conditions, requiring the appeal to be dismissed.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.
  • New trial ordered on issues corresponding to trial questions 4, 6 and 11.