Cameron v. Harper

Cameron v. Harper

The court found the sums in receivers' hands were testator's assets or proceeds and that the will implied a charge of the pecuniary legacy on the testator's realty; mortgagees had notice; therefore the legatee's judgment took priority over the executor's personal creditors and the unpaid legacy must be paid from the receivers' funds.

Citation
(1892) 21 SCR 273
Parties
Appellants: John Cameron and others; Defendant (executor and Residuary Legatee): Thaddeus Harper; Respondent (legatee/plaintiff): Ezekiel Harper
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 June 1892
Procedural Posture
Appeal / Appeal to the Supreme Court of Canada From the Supreme Court of British Columbia
Outcome
Appeal dismissed with costs; judgment of the Supreme Court of British Columbia in favour of the respondent affirmed.
Legal Topics
Legacy, Executor Liability, Priority of Creditors, Charge on Realty, Subrogation, Notice to Mortgagees
Source Language
English

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Parties

John Cameron and others

Appellants

Thaddeus Harper

Defendant (executor and Residuary Legatee)

Ezekiel Harper

Respondent (legatee/plaintiff)

Procedural Posture

Appeal / Appeal to the Supreme Court of Canada From the Supreme Court of British Columbia

  1. 1 Whether a judgment for an unpaid pecuniary legacy is a charge on funds in receivers' hands in priority to personal creditors of the executor
  2. 2 Whether the pecuniary legacy is charged on the testator's realty by implication of the will
  3. 3 Whether mortgagees and personal judgment creditors of the executor can claim priority over a legatee when they had notice of the will

Ratio Decidendi

The court found the sums in receivers' hands were testator's assets or proceeds and that the will implied a charge of the pecuniary legacy on the testator's realty; mortgagees had notice; therefore the legatee's judgment took priority over the executor's personal creditors and the unpaid legacy must be paid from the receivers' funds.

Court Disposition

Appeal dismissed with costs; judgment of the Supreme Court of British Columbia in favour of the respondent affirmed.

Orders

  • Order that the unpaid balance of Ezekiel Harper's legacy (judgment $6,865 plus interest and costs) be paid out of the testator's share of the funds in the receivers' hands (one-half of $45,497.50 as found by the court below).
  • Injunction preventing the receivers from distributing the fund without payment of the respondent's claim.