Marketing Products, Inc. v. 1254719 Ontario Ltd.

Marketing Products, Inc. v. 1254719 Ontario Ltd.

The motions judge correctly confined the material facts to the cheque transaction; Tech's counterclaim pleaded only unliquidated sums and thus failed the requirements for legal set-off; equitable set-off is not available against an action on a bill of exchange (cheque) under binding authority (Iraco); alleged misrepresentation was not pleaded as vitiating the cheque and did not create a triable issue; summary judgment for MPI was therefore proper, with enforcement stayed on conditions.

Citation
C33998
Parties
Plaintiff (respondent): Marketing Products Inc. (carrying on business as Great Lakes Audio and Video); Defendant (appellant): 1254719 Ontario Ltd. (carrying on business as Tech Electronic Services)
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
8 December 2000
Procedural Posture
Collection / Appeal From Summary Judgment
Outcome
Appeal dismissed with costs; enforcement of summary judgment stayed on conditions
Legal Topics
Summary Judgment, Legal Set Off, Equitable Set Off, Misrepresentation, Cheque (bill of Exchange)
Source Language
English
Civil Commercial Law Contract Civil Procedure Negotiable Instruments Summary Judgment Legal Set Off Equitable Set Off +2 more

Case Brief

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Parties

Marketing Products Inc. (carrying on business as Great Lakes Audio and Video)

Plaintiff (respondent)

1254719 Ontario Ltd. (carrying on business as Tech Electronic Services)

Defendant (appellant)

Procedural Posture

Collection / Appeal From Summary Judgment

Legal Issues

  1. 1 Whether there were genuine issues of material fact requiring trial
  2. 2 Whether legal set-off applied to defeat claim on a dishonoured cheque
  3. 3 Whether equitable set-off applies to a bill of exchange (cheque)

Ratio Decidendi

The motions judge correctly confined the material facts to the cheque transaction; Tech's counterclaim pleaded only unliquidated sums and thus failed the requirements for legal set-off; equitable set-off is not available against an action on a bill of exchange (cheque) under binding authority (Iraco); alleged misrepresentation was not pleaded as vitiating the cheque and did not create a triable issue; summary judgment for MPI was therefore proper, with enforcement stayed on conditions.

Court Disposition

Appeal dismissed with costs; enforcement of summary judgment stayed on conditions

Orders

  • Appeal dismissed with costs to the respondent
  • Stay enforcement of the summary judgment provided that within 30 days the appellant pay into court the total amount awarded in the summary judgment plus additional interest under the Courts of Justice Act