Culina v. Giuliani

Culina v. Giuliani

The appeal was allowed because the appellant purchased and held the shares as trustee with the defendants' knowledge; the defendants' dishonest conduct frustrated the contract and made performance impossible, and a trustee suing in a representative capacity is entitled to recover damages (here limited to the $40,000 advanced) despite possible personal or vicarious liability for wrongdoing.

Citation
[1972] SCR 343
Parties
Plaintiff (trustee) Appellant: John Culina; Defendant Respondent: Erzi Giuliani; Defendant: George John Majic
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
5 October 1971
Procedural Posture
Civil Appeal (trusts and Contract) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
Outcome
Appeal allowed.
Legal Topics
Trustee Suing in Representative Capacity, Frustration of Contract by Dishonest Conduct, Vicarious Liability of Partner, Damages for Breach of Contract
Source Language
English
Trusts Contract Equity Partnership Company Law Trustee Suing in Representative Capacity Frustration of Contract by Dishonest Conduct Vicarious Liability of Partner +1 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 3 Authorities cited 9 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

John Culina

Plaintiff (trustee) Appellant

Erzi Giuliani

Defendant Respondent

George John Majic

Defendant

Procedural Posture

Civil Appeal (trusts and Contract) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario

Legal Issues

  1. 1 Whether a plaintiff suing as trustee can recover despite personal or vicarious involvement in wrongdoing
  2. 2 Whether the defendants' dishonest operation of the company frustrated the contract so as to entitle the purchaser (trustee) to recover the amount advanced
  3. 3 Whether the plaintiff was vicariously liable as a partner for the fraud of his partner and if that defeats a trustee claim

Ratio Decidendi

The appeal was allowed because the appellant purchased and held the shares as trustee with the defendants' knowledge; the defendants' dishonest conduct frustrated the contract and made performance impossible, and a trustee suing in a representative capacity is entitled to recover damages (here limited to the $40,000 advanced) despite possible personal or vicarious liability for wrongdoing.

Court Disposition

Appeal allowed.

Orders

  • Judgment for plaintiff as trustee in the amount of $40,000
  • Judgment specifically limited to the plaintiff as trustee under the declaration of trust dated March 13, 1958