Lemcke v. Newlove

Lemcke v. Newlove

Trial judge's allowance of reasonable expenses to Mrs. Newlove as a charge on the estate was upheld (based on credibility of oral evidence); executors were liable for misdisposition of the Knox agreement but only to the extent of the value of the estate asset represented by that agreement as of the date of the quit-claim (9 July 1923), including the estate's equity, with interest; the acceleration clause in the crop-payment purchase agreement operated to make the whole unpaid purchase price forthwith due in currency on default (including for unpaid taxes and crop-payment defaults).

Citation
[1927] SCR 389
Parties
Appellant/plaintiff: Charles Lemcke; Appellant/plaintiff: John S. Craik; Respondent/defendant (executor): W. C. Newlove; Respondent/defendant (executor): Thomas H. Newlove
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 April 1927
Procedural Posture
Civil Appeal (estates/executors) / Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan, Decision on Appeal From Trial Court Judgment
Outcome
Appeal allowed in part; trial judgment restored subject to modification; cross-appeal dismissed.
Legal Topics
Devastavit, Executor Liability, Acceleration Clause, Crop Payment Agreement, Vendor's Lien, Administration of Estate, Fiduciary Duties, Application of Trustee Act S.44
Source Language
English
Estates Trusts and Trustees Property Law Contract Law Devastavit Executor Liability Acceleration Clause Crop Payment Agreement +4 more

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Parties

Charles Lemcke

Appellant/plaintiff

John S. Craik

Appellant/plaintiff

W. C. Newlove

Respondent/defendant (executor)

Thomas H. Newlove

Respondent/defendant (executor)

Procedural Posture

Civil Appeal (estates/executors) / Appeal to the Supreme Court of Canada From the Court of Appeal for Saskatchewan, Decision on Appeal From Trial Court Judgment

Legal Issues

  1. 1 Whether reasonable expenses paid to Mrs. Newlove for farm management were properly chargeable to the estate
  2. 2 Whether executors committed a devastavit in disposing of the Knox agreement and, if so, the proper measure of liability
  3. 3 Whether the acceleration clause in the crop-payment agreement operated to make the whole purchase money immediately due and payable in currency upon default (including for unpaid taxes and missed crop payments)

Ratio Decidendi

Trial judge's allowance of reasonable expenses to Mrs. Newlove as a charge on the estate was upheld (based on credibility of oral evidence); executors were liable for misdisposition of the Knox agreement but only to the extent of the value of the estate asset represented by that agreement as of the date of the quit-claim (9 July 1923), including the estate's equity, with interest; the acceleration clause in the crop-payment purchase agreement operated to make the whole unpaid purchase price forthwith due in currency on default (including for unpaid taxes and crop-payment defaults).

Court Disposition

Appeal allowed in part; trial judgment restored subject to modification; cross-appeal dismissed.

Orders

  • Appeal allowed in part without costs to appellants
  • Trial judge's judgment restored except varied to charge defendants only with the value, as of 9 July 1923, of the estate asset represented by the Knox agreement including the equity in the land, with interest at 7% from that date