Hayes v. Elmsley

Hayes v. Elmsley

Where a vendor's wilful default (including repudiation and pursuit of rescission or unjustified claims) causes delay in completion, the purchaser is not liable for interest during the period of that default; a purchaser who has not paid purchase money and has no right to possession is not entitled to rents and profits; specific performance was ordered subject to payment of purchase money and interest only for the period prior to vendor default (24 Nov 1886 to 20 Jul 1887).

Citation
(1893) 23 SCR 623
Parties
Appellant / Purchaser: Frederick B. Hayes; Respondent / Vendor: Remigius Elmsley
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
14 June 1893
Procedural Posture
Specific Performance (vendor and Purchaser) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario
Outcome
Appeal allowed in part: specific performance ordered upon payment of purchase money and interest only from 24 November 1886 to 20 July 1887; respondent to pay costs; contract declared rescinded if payment not made by day fixed in judgment.
Legal Topics
Specific Performance, Interest on Purchase Money, Rescission, Rents and Profits, Vendor Wilful Default
Source Language
English
Property Law Contract Law Equity Vendor and Purchaser Sale Specific Performance Interest on Purchase Money Rescission +2 more

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Parties

Frederick B. Hayes

Appellant / Purchaser

Remigius Elmsley

Respondent / Vendor

Procedural Posture

Specific Performance (vendor and Purchaser) / Appeal to Supreme Court of Canada From Court of Appeal for Ontario

Legal Issues

  1. 1 Whether vendor entitled to interest from date of contract despite vendor's conduct and litigation asserting rescission
  2. 2 Whether purchaser who had not paid purchase money and was not in possession was entitled to rents and profits
  3. 3 Whether vendor's conduct in suing for rescission and insisting on interest constituted wilful default relieving purchaser from interest obligations

Ratio Decidendi

Where a vendor's wilful default (including repudiation and pursuit of rescission or unjustified claims) causes delay in completion, the purchaser is not liable for interest during the period of that default; a purchaser who has not paid purchase money and has no right to possession is not entitled to rents and profits; specific performance was ordered subject to payment of purchase money and interest only for the period prior to vendor default (24 Nov 1886 to 20 Jul 1887).

Court Disposition

Appeal allowed in part: specific performance ordered upon payment of purchase money and interest only from 24 November 1886 to 20 July 1887; respondent to pay costs; contract declared rescinded if payment not made by day fixed in judgment.

Orders

  • Appellant entitled to specific performance upon payment of the purchase money and interest from 24 November 1886 to 20 July 1887.
  • Respondent to pay the costs in all courts.