Catellier v. Bélanger

Catellier v. Bélanger

Where a promissory note and loan are made simultaneously the presumption is that the note embodies the parties' entire obligation; that note is subject to a five‑year prescription which, when expired, extinguishes the underlying loan absent legal proof to the contrary; therefore the respondent's cross‑demand based on the loan was prescribed and cannot be used in compensation, and the appeal is allowed to maintain the appellant's principal claim and dismiss the reconventional demand.

Citation
[1924] SCR 436
Parties
Appellant / Plaintiff: Dame O. Catellier; Respondent / Defendant: Dame A. Belanger
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
8 June 1924
Procedural Posture
Civil Appeal From Court of King's Bench, Province of Quebec / On Appeal to the Supreme Court of Canada
Outcome
Appeal allowed; appellant's claim maintained; respondent's reconventional demand rejected; costs to appellant in all courts.
Legal Topics
Promissory Note, Loan, Prescription (statute of Limitations), Compensation/set Off, Jurisdiction to Adjudicate Ancillary Claims
Source Language
English
Contract Prescription Negotiable Instruments Civil Procedure Promissory Note Loan Prescription (statute of Limitations) Compensation/set Off +1 more

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Parties

Dame O. Catellier

Appellant / Plaintiff

Dame A. Belanger

Respondent / Defendant

Procedural Posture

Civil Appeal From Court of King's Bench, Province of Quebec / On Appeal to the Supreme Court of Canada

Legal Issues

  1. 1 Whether a promissory note given contemporaneously as consideration for a loan governs the parties' obligation and is subject to a five‑year prescription
  2. 2 Whether the respondent's cross‑demand for $3,000 was extinguished by prescription
  3. 3 Whether an admission in pleadings dividing the admission can resurrect a prescribed debt or otherwise avoid prescription

Ratio Decidendi

Where a promissory note and loan are made simultaneously the presumption is that the note embodies the parties' entire obligation; that note is subject to a five‑year prescription which, when expired, extinguishes the underlying loan absent legal proof to the contrary; therefore the respondent's cross‑demand based on the loan was prescribed and cannot be used in compensation, and the appeal is allowed to maintain the appellant's principal claim and dismiss the reconventional demand.

Court Disposition

Appeal allowed; appellant's claim maintained; respondent's reconventional demand rejected; costs to appellant in all courts.

Orders

  • Appeal allowed
  • Judgment for appellant for the principal claim (semestre of rente) in the amount claimed