Raphael v. McFarlane

Raphael v. McFarlane

Where shares were subscribed for and entered in the company books as held 'in trust' for a minor, a valid trust arose; transfers of such shares without the judicial authorization required by Civil Code arts 297–299 are null; and a transferee who had knowledge of the trust is bound to account to the tutor for the shares or their value.

Citation
(1890) 18 SCR 183
Parties
Appellant / Plaintiff (tutor): Henry W. Raphael; Respondent / Defendant: James McFarlane; Defendant / Alleged Trustee (father): Patrick Thomas Gibb
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
9 December 1890
Procedural Posture
Civil Appeal (trust Dispute) / Final Appeal to the Supreme Court of Canada From Court of Queen's Bench for Lower Canada (appeal Side)
Outcome
Appeal allowed with costs
Legal Topics
Tutor Authority, Minor's Property, Transfer of Shares, Notice to Purchaser, Civil Code Arts 297 299
Source Language
English
Trust Company Law Family Law Property Law Civil Procedure Tutor Authority Minor's Property Transfer of Shares +2 more

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Parties

Henry W. Raphael

Appellant / Plaintiff (tutor)

James McFarlane

Respondent / Defendant

Patrick Thomas Gibb

Defendant / Alleged Trustee (father)

Procedural Posture

Civil Appeal (trust Dispute) / Final Appeal to the Supreme Court of Canada From Court of Queen's Bench for Lower Canada (appeal Side)

Legal Issues

  1. 1 Whether shares subscribed and entered 'in trust' by a father for his minor child created a valid trust without appointment of a tutor
  2. 2 Whether transfer of a minor's shares without judicial authorization required by Civil Code arts 297-299 is void
  3. 3 Whether a purchaser with knowledge of the trust is bound to account to the tutor

Ratio Decidendi

Where shares were subscribed for and entered in the company books as held 'in trust' for a minor, a valid trust arose; transfers of such shares without the judicial authorization required by Civil Code arts 297–299 are null; and a transferee who had knowledge of the trust is bound to account to the tutor for the shares or their value.

Court Disposition

Appeal allowed with costs

Orders

  • Appeal allowed with costs.
  • Transfers set aside as to the shares held in trust and respondent ordered to account to the plaintiff in his capacity as tutor for the shares or their value.