Brown v. Torrance

Brown v. Torrance

The guarantee was conditional on the creditor allowing the guarantor to take possession of consigned goods; the creditor withdrew some goods and permitted others to be seized and removed without notifying or authorizing the guarantor, thereby depriving the guarantor of the means of protection and subrogation; consequently the condition was not fulfilled and the guarantor could not be held liable; appeal dismissed.

Citation
(1900) 30 SCR 311
Parties
Appellant/plaintiff: D. MCLAURIN BROWN; Respondent/defendant: JOHN TORRANCE
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
8 May 1900
Procedural Posture
Civil Appeal / Appeal to the Supreme Court of Canada From the Court of Queen's Bench for Lower Canada (appeal Side)
Outcome
Appeal dismissed with costs.
Legal Topics
Conditional Warranty, Notice, Possession of Goods, Del Credere Commission, Suretyship Obligations, Subrogation
Source Language
English
Guarantee and Suretyship Contract Civil Procedure Conditional Warranty Notice Possession of Goods Del Credere Commission Suretyship Obligations +1 more

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Parties

D. MCLAURIN BROWN

Appellant/plaintiff

JOHN TORRANCE

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal to the Supreme Court of Canada From the Court of Queen's Bench for Lower Canada (appeal Side)

Legal Issues

  1. 1 Whether the conditional letter of guarantee was enforceable
  2. 2 Whether the creditor complied with the condition to allow the surety to take possession of consigned goods
  3. 3 Whether the creditor's conduct preventing subrogation discharged the surety

Ratio Decidendi

The guarantee was conditional on the creditor allowing the guarantor to take possession of consigned goods; the creditor withdrew some goods and permitted others to be seized and removed without notifying or authorizing the guarantor, thereby depriving the guarantor of the means of protection and subrogation; consequently the condition was not fulfilled and the guarantor could not be held liable; appeal dismissed.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.