Mongeau et al. v. Mongeau et al.

Mongeau et al. v. Mongeau et al.

Berthold and René acted as mandataries for Louis and Gaston; the $1,000,000 paid for Monro Ltée was, as far as the purchaser was concerned, part of the total consideration for the sale of Mongeau & Robert shares; because the mandatary received that sum secretly and failed to prove it represented property belonging to them, article 1713 required them to account and pay over the appropriate share; therefore they were liable to pay $250,000 each plus interest and costs; Roger Robert was not shown to be complicit and is not liable.

Citation
[1973] SCR 529
Parties
Appellant/plaintiff: Louis Mongeau; Appellant/plaintiff: Dame Myrtle Clark (representing Gaston Mongeau); Respondent/defendant: Berthold Mongeau; Respondent/defendant: René Mongeau; Respondent/defendant: Roger Robert
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
20 December 1971
Procedural Posture
Civil Appeal (sale of Shares / Mandate) / Appeal to Supreme Court of Canada (final Judgment)
Outcome
Appeal allowed in part: allowed against Berthold and René Mongeau; dismissed as to Roger Robert
Legal Topics
Mandate, Fiduciary Duty of Agents, Breach of Trust, Accounting by Mandatary, Burden of Proof in Secret Transactions
Source Language
English
Agency Corporate Law Trusts and Fiduciary Duties Contract Law Mandate Fiduciary Duty of Agents Breach of Trust Accounting by Mandatary +1 more

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Parties

Louis Mongeau

Appellant/plaintiff

Dame Myrtle Clark (representing Gaston Mongeau)

Appellant/plaintiff

Berthold Mongeau

Respondent/defendant

René Mongeau

Respondent/defendant

Roger Robert

Respondent/defendant

Procedural Posture

Civil Appeal (sale of Shares / Mandate) / Appeal to Supreme Court of Canada (final Judgment)

Legal Issues

  1. 1 Whether respondents acted as mandataries for appellants in negotiating the sale of company shares
  2. 2 Whether the $1,000,000 paid for Monro Ltée was in substance part of the price for Mongeau & Robert Cie Ltée shares
  3. 3 Whether respondents breached their duty under Civil Code art. 1713 by secretly appropriating part of the sale proceeds

Ratio Decidendi

Berthold and René acted as mandataries for Louis and Gaston; the $1,000,000 paid for Monro Ltée was, as far as the purchaser was concerned, part of the total consideration for the sale of Mongeau & Robert shares; because the mandatary received that sum secretly and failed to prove it represented property belonging to them, article 1713 required them to account and pay over the appropriate share; therefore they were liable to pay $250,000 each plus interest and costs; Roger Robert was not shown to be complicit and is not liable.

Court Disposition

Appeal allowed in part: allowed against Berthold and René Mongeau; dismissed as to Roger Robert

Orders

  • Set aside lower court judgments as to Berthold and René Mongeau
  • Condemn Berthold Mongeau to pay Louis Mongeau $250,000 with interest from April 28, 1961, and costs throughout