Robertson v. Davis

Robertson v. Davis

Appeal dismissed because the plaintiff sued on the instrument but proved a different underlying contract (security/surety arrangement); consequently the action as pleaded was not founded on the real contract and, in any event, an action on the instrument itself against an indorser was not maintainable under the authorities cited.

Citation
(1897) 27 SCR 571
Parties
Appellant / Plaintiff: John Robertson; Respondent / Defendant: William H. Davis
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 June 1897
Procedural Posture
Civil Action (suretyship / Negotiable Instruments) / Appeal to Supreme Court of Canada From Court of Queen's Bench for Lower Canada (appeal Side); Judgment on Appeal
Outcome
Appeal dismissed with costs
Legal Topics
Promissory Note, Qualified Indorsement, Accommodation Indorser, Security Taken by Holder, Liability of Indorser, Continuing Security
Source Language
English
Contract Commercial Law Negotiable Instruments Suretyship Promissory Note Qualified Indorsement Accommodation Indorser Security Taken by Holder +2 more

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Parties

John Robertson

Appellant / Plaintiff

William H. Davis

Respondent / Defendant

Procedural Posture

Civil Action (suretyship / Negotiable Instruments) / Appeal to Supreme Court of Canada From Court of Queen's Bench for Lower Canada (appeal Side); Judgment on Appeal

Legal Issues

  1. 1 Whether action on promissory notes corresponded to the real contract proved between parties
  2. 2 Whether a qualified indorsement marked "not negotiable and given as security" converts the instrument into a suretyship/security and limits remedies on the instrument
  3. 3 Whether the payee or drawer can sue an indorser on the instrument itself

Ratio Decidendi

Appeal dismissed because the plaintiff sued on the instrument but proved a different underlying contract (security/surety arrangement); consequently the action as pleaded was not founded on the real contract and, in any event, an action on the instrument itself against an indorser was not maintainable under the authorities cited.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs