Ontario Woodsworth Memorial Foundation v. Grozbord

Ontario Woodsworth Memorial Foundation v. Grozbord

Plaintiff’s deliberate and lengthy delay in notifying the banks and solicitor of the forged endorsement materially prejudiced their ability to recover from the forger; consequently estoppel bars the plaintiff from denying the forged endorsement as against those parties, and the plaintiff also elected to adopt the transaction so its claims against purchaser/nominee fail.

Citation
[1969] SCR 622
Parties
Plaintiff/appellant: Ontario Woodsworth Memorial Foundation; Defendant/respondent: A.Y. Grozbord; Defendant/respondent: Mont Blanc Holding Company; Defendant/respondent: The Royal Bank of Canada; Defendant/respondent: The Bank of Nova Scotia; Defendant/respondent (third Party): E. Lawrence Stone
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 April 1969
Procedural Posture
Civil Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Final Judgment on Appeal
Outcome
Appeals dismissed; plaintiff’s action dismissed against all defendants; conditional third party appeal dismissed without costs.
Legal Topics
Estoppel by Representation, Delay and Notice of Forgery, Endorsement of Cheques, Specific Performance, Conversion of Negotiable Instruments, Indemnity Between Banks
Source Language
English
Evidence Equity Property Banking Law Contract Estoppel by Representation Delay and Notice of Forgery Endorsement of Cheques +3 more

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Parties

Ontario Woodsworth Memorial Foundation

Plaintiff/appellant

A.Y. Grozbord

Defendant/respondent

Mont Blanc Holding Company

Defendant/respondent

The Royal Bank of Canada

Defendant/respondent

The Bank of Nova Scotia

Defendant/respondent

E. Lawrence Stone

Defendant/respondent (third Party)

Procedural Posture

Civil Appeal / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario; Final Judgment on Appeal

Legal Issues

  1. 1 Whether plaintiff’s delay in notifying banks and others of a forged endorsement estops it from denying the genuineness of the endorsement
  2. 2 Whether the purchaser and purchaser’s nominee were liable for non‑performance or entitled to specific performance given the manner of closing and payment
  3. 3 Whether the defendant banks or solicitor suffered detriment such that estoppel applies and bars recovery for conversion

Ratio Decidendi

Plaintiff’s deliberate and lengthy delay in notifying the banks and solicitor of the forged endorsement materially prejudiced their ability to recover from the forger; consequently estoppel bars the plaintiff from denying the forged endorsement as against those parties, and the plaintiff also elected to adopt the transaction so its claims against purchaser/nominee fail.

Court Disposition

Appeals dismissed; plaintiff’s action dismissed against all defendants; conditional third party appeal dismissed without costs.

Orders

  • Appeals dismissed with costs to respondents
  • Conditional appeal in third party proceedings (Stone v. banks) dismissed without costs