Plisson v. Duncan

Plisson v. Duncan

A receiver directed to manage a business must exercise ordinary reasonable care and supervision; where the evidence shows he left the business without proper oversight and accounting, resulting in an unexplained deficit, he is liable for that deficit even absent proof of deliberate peculation; prior consent to his appointment knowing he would not personally manage does not absolve him of this duty.

Citation
(1905) 36 SCR 647
Parties
Appellant / Plaintiff: Pierre Remy Plisson; Respondent / Receiver: James M. Duncan; Co‑partner / Defendant: Diemert
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 November 1905
Procedural Posture
Appeal (civil) Receiver/partnership Accounting / Hearing and Judgment on Appeal to the Supreme Court of Canada
Outcome
Appeal allowed with costs; receiver declared liable for deficit and ordered to deliver possession and then discharged.
Legal Topics
Receiver Duties, Management of Business, Negligence, Laches, Partnership Dissolution, Accounting of Receiver, Liability for Deficit, Appointment of Receiver
Source Language
English
Property Law Equity Partnership Law Trusts and Trusteeship Insolvency Receiver Duties Management of Business Negligence +5 more

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Parties

Pierre Remy Plisson

Appellant / Plaintiff

James M. Duncan

Respondent / Receiver

Diemert

Co‑partner / Defendant

Procedural Posture

Appeal (civil) Receiver/partnership Accounting / Hearing and Judgment on Appeal to the Supreme Court of Canada

Legal Issues

  1. 1 Whether a court‑appointed receiver who manages a partnership business is liable for a deficit arising during his management
  2. 2 What standard of care a receiver must exercise while managing an entrusted business
  3. 3 Whether prior consent to appointment knowing the receiver (sheriff) would not personally manage absolves him of liability

Ratio Decidendi

A receiver directed to manage a business must exercise ordinary reasonable care and supervision; where the evidence shows he left the business without proper oversight and accounting, resulting in an unexplained deficit, he is liable for that deficit even absent proof of deliberate peculation; prior consent to his appointment knowing he would not personally manage does not absolve him of this duty.

Court Disposition

Appeal allowed with costs; receiver declared liable for deficit and ordered to deliver possession and then discharged.

Orders

  • Appeal allowed with costs of this court and of the court of appeal.
  • Receiver James M. Duncan declared liable for and charged with the deficit of $1,367.16.