Rural Municipality of Victory v. Saskatchewan Guarantee & Fidelity Co., Ltd.

Rural Municipality of Victory v. Saskatchewan Guarantee & Fidelity Co., Ltd.

The Supreme Court restored the jury's finding that the 1 March 1922 certificate representations were true and held the 16 March 1923 certificate contained a false representation as the council knew of a discrepancy between the auditor's balance and the treasurer's cash and nevertheless certified; therefore the 1923...

Source-derived case information.

Citation
[1928] SCR 264
Parties
Plaintiff/appellant: Rural Municipality of Victory No. 226; Defendant/respondent: Saskatchewan Guarantee and Fidelity Company, Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 March 1928
Procedural Posture
Appeal / Appeal to Supreme Court of Canada From Court of Appeal of Saskatchewan
Outcome
Appeal allowed in part
Legal Topics
Surety Bond Renewal, Misrepresentation Inducing Contract, Auditor's Authority and Liability, Contra Proferentem, Appellate Fact‑finding Jurisdiction
Source Language
english
Guarantee and Suretyship Municipal Law Contract Law Evidence Surety Bond Renewal Misrepresentation Inducing Contract Auditor's Authority and Liability Contra Proferentem +1 more

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Parties

Rural Municipality of Victory No. 226

Plaintiff/appellant

Saskatchewan Guarantee and Fidelity Company, Limited

Defendant/respondent

Procedural Posture

Appeal / Appeal to Supreme Court of Canada From Court of Appeal of Saskatchewan

Legal Issues

  1. 1 Whether appellate court may substitute its findings for a jury under Rule 44/Order 58
  2. 2 Whether auditor's signature on renewal certificate bound the municipality as agent or officer
  3. 3 Whether representations in renewal certificates were true and material and whether false representations voided the bond renewal

Ratio Decidendi

The Supreme Court restored the jury's finding that the 1 March 1922 certificate representations were true and held the 16 March 1923 certificate contained a false representation as the council knew of a discrepancy between the auditor's balance and the treasurer's cash and nevertheless certified; therefore the 1923 renewal was voidable and defendant liable only for the shortfall existing at that renewal ($3,600). The Court also held that the Court of Appeal may substitute findings for a jury when it properly concludes the jury's finding was perverse and no further evidence could change the result, and that the auditor's signature was not automatically a municipal representation binding...

Court Disposition

Appeal allowed in part

Orders

  • Judgment entered for plaintiff (Rural Municipality of Victory) for $3,600 with interest
  • Plaintiff awarded costs of this appeal and costs of the action