Bank of Montreal v. Bank of Canada and Bay Bus Terminal (North Bay) Ltd. et al., (1977) 16 N.R. 93 (SCC)

JudgeLaskin, C.J.C., Martland, Judson, Ritchie, Pigeon, Dickson, Beetz and de Grandpré, JJ.
CourtSupreme Court (Canada)
Case DateJune 14, 1977
JurisdictionCanada (Federal)
Citations(1977), 16 N.R. 93 (SCC);[1978] 1 SCR 1148;76 DLR (3d) 385;1977 CanLII 36 (SCC);16 NR 93

Bk. of Mtrl. v. Bk. of Can. (1977), 16 N.R. 93 (SCC)

MLB headnote and full text

Bank of Montreal v. Bank of Canada and Bay Bus Terminal (North Bay) Limited et al.

Indexed As: Bank of Montreal v. Bank of Canada and Bay Bus Terminal (North Bay) Ltd. et al.

Supreme Court of Canada

Laskin, C.J.C., Martland, Judson, Ritchie, Pigeon, Dickson, Beetz and de Grandpré, JJ.

June 14, 1977.

Summary:

This case arose out of the plaintiff's action for the recovery of the $23,307.50 representing the value of money destroyed in a fire on a bus belonging to the defendant bus company. The plaintiff brought an action against the bus company for recovery of the money. The Ontario Supreme Court in a judgment reported [1963] 1 O.R. 561 allowed the plaintiff's action. The bus company appealed and in a judgment reported [1964] 2 O.R. 425 the Ontario Court of Appeal ordered that the Bank of Canada be added and joined as a party defendant and directed a new trial. The plaintiff issued a new statement of claim against the Bank of Canada for replacement of the bank notes. The parties applied to the Ontario Supreme Court for determination of whether the plaintiff was entitled to replacement of the bank notes. The Ontario Supreme Court held that the plaintiff was entitled to replacement and the judgment was affirmed by the Ontario Court of Appeal. The Bank of Canada appealed.

The Supreme Court of Canada dismissed the appeal. The Supreme Court of Canada held that a note of the Bank of Canada was a promissory note within the meaning of 176.1 of the Bills of Exchange Act, R.S.C. 1952, c. 15. See paragraphs 44 to 65. The Supreme Court of Canada held that the plaintiff, as the holder of bank notes as promissory notes, was entitled to replacement from the Bank of Canada under the common law custom of merchant made applicable by s. 10 of the Bills of Exchange Act. See paragraphs 66 to 81.

Laskin, C.J.C., dissenting, Martland, Judson and Dickson, JJ., concurring, was of the opinion that a bank note is not a promissory note under s. 176.1 of the Bills of Exchange Act and that the Bank of Canada had no obligation to replace such notes under the Bills of Exchange Act. See paragraphs 1 to 26.

Negotiable Instruments - Topic 6001

Promissory notes - General principles - Promissory note defined - Bills of Exchange Act, R.S.C. 1952, c. 15, s. 176.1 [now R.S.C. 1970, c. B-5] - The Supreme Court of Canada held that a bank note (money or currency) issued by the Bank of Canada is a promissory note within the meaning of s. 176.1 of the Bills of Exchange Act - See paragraphs 44 to 65.

Negotiable Instruments - Topic 6506

Promissory notes - Destroyed notes - Right of holder to replacement - Bills of Exchange Act, R.S.C. 1952, c. 15, ss. 10, 156 [now R.S.C. 1970, c. B-5] - The plaintiff lost $23,307.50 in Bank of Canada bank notes (money or currency) in a fire and brought an action against the Bank of Canada for the replacement of the notes - The Supreme Court of Canada held that a bank note was a promissory note and, if it was destroyed, the holder was entitled to replacement from the Bank of Canada under the common law custom of merchant made applicable by s. 10 of the Bills of Exchange Act - See paragraphs 66 to 81.

Negotiable Instruments - Topic 6546

Promissory notes - Lost notes - Presumption of lost note - The Supreme Court of Canada stated that, if there is doubt whether a note has been lost or destroyed, the court should proceed as if it has been lost - See paragraph 80.

Cases Noticed:

Banco de Portugal v. Waterlow and Sons, Limited, [1932] A.C. 452, folld. [para. 54].

Suffell v. The Bank of England (188182), 9 Q.B. 555, consd. [para. 61].

Gillet v. The Bank of England (188990), 6 T.L.R. 9, refd to. [para. 61].

R. v. Brown (1854057), 8 N.B.R. 13, refd to. [para. 62].

Raphael v. The Governor and Company of the Bank of England, (1855056), 17 Commons Bench Reports 161, refd to. [para. 62].

McDonnel v. Murray (1858-59), 9 Irish L. Rep. 495, refd to. [para. 62].

The Australian Joint Stock Bank v. The Oriental Bank (1866), 5 New South Wales Surp. Crt. Rep. 129, refd to. [para. 62].

Jefferson v. The Ulster Bank (1900), 34 Irish Law Time Rep. 58, refd to. [para. 62].

Hong Kong and Shanghai Banking Corporation v. Lo Lee Shi, [1928] A.C. 181, refd to. [para. 62].

Re Toronto Beaches Election; Ferguson v. Murphy, [1943] O.R. 787, refd to. [para. 62].

Pillow v. L'Espérance (1902), 22 S.C. 213, refd to. [para. 70].

Hansard v. Robinson (1827), 108 E.R. 659, refd to. [para. 75].

Pierson v. Hutchinson (1809), 170 E.R. 1132, refd to. [para. 75].

Woodford v. Whitely (1830), 173 E.R. 1243, refd to. [para. 75].

Clarke v. Quince (1834), 3 Dowl. 26, refd to. [para. 75].

Blackie v. Pinding (1848), 136 E.R. 1225, refd to. [para. 75].

Crowe v. Clay (1854), 9 Ex. Rep. 604, refd to. [para. 75].

Wright v. Lord Maidstone, [1854-55] K. & J. R. 701, refd to. [para. 75].

France, Cours de Cassation, 1867, Dalloz 1-289, refd to. [para. 83].

Statutes Noticed:

Bills of Exchange Act, R.S.C. 1952, c. 15 [now R.S.C. 1970, c. B-5], sect. 2(h) [para. 47]; sect. 10 [para. 68]; sect. 21 [para. 48]; sect. 22 [para. 40]; sect. 30 [para. 60]; sect. 36 [para. 59]; sect. 93(3) [para. 67]; sect. 120 [para. 74]; sect. 156, sect. 157 [paras. 22, 68]; sect. 176.1 [para. 44]; sect. 186 [para. 69].

Bills of Exchange Act, 1882 (Imp., 44-46 Vict., c. 61 [para. 78].

Common Law Procedure Act, 1854 (Imp.), 17-18 Vict., c. 125, sect. 87 [para. 77].

Currency, Mint and Exchange Fund Act, R.S.C. 1952, c. 315, sect. 4 [para. 42]; sect. 7 [paras. 42, 49].

Authors and Works Noticed:

Mann, The Legal Aspect of Money (3rd Ed. 1971), p. 12, [para. 17].

Nussbaum, A., Money in the Law (Chicago 1939), pp. 83 [paras. 17, 45]; 84 [paras. 17, 19, 45]; 89, 90 [para. 85]; 93 ff. [para. 14].

Plumtre, Central Banking In the British Dominions (1940), pp. 29 [para. 9]; 33 [para. 10].

Counsel:

J.J. Robinette, Q.C., for the appellant;

Brendan O'Brien, Q.C., for the respondent Bank of Montreal;

George Wallace, Q.C., for the respondent Bay Bus Terminal et al.

This case was heard on January 29, 1976, at Ottawa, Ontario, before LASKIN, C.J.C., MARTLAND, JUDSON, RITCHIE, PIGEON, DICKSON, BEETZ and de GRANDPRE, JJ., of the Supreme Court of Canada.

On June 14, 1977, the judgment of the Supreme Court of Canada was delivered and the following opinions were filed:

LASKIN, C.J.C., dissenting - see paragraphs 1 to 26;

BEETZ, J., - see paragraphs 27 to 86.

MARTLAND, JUDSON and DICKSON, JJ., concurred with LASKIN, C.J.C.

RITCHIE, PIGEON, and de GRANDPRE, JJ., concurred with BEETZ, J.

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9 practice notes
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    ...Ltd v Selim Najjar [1969] 1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA) [97] First, the The Bank of Canada v Bank of Montreal, [1978] 1 SCR 1148, 76 DLR (3rd) 385 passage only paraphrases the actual text. More importantly, the passage identified is from page 1154 of a dissent by La......
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    • Irwin Books Archive Bank and Customer Law in Canada
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    ...No. 123 (C.A.) ................................................................... 252, 291 Bank of Canada v. Bank of Montreal (1977), [1978] 1 S.C.R. 1148, 76 D.L.R. (3d) 385 , [1977] S.C.J. No. 109 (S.C.C.) ................................ 39, 245 BANK AND CUSTOMER LAW 416 Bank of China......
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5 cases
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    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • September 7, 2018
    ...Ltd v Selim Najjar [1969] 1 W.L.R. 357 at 361; [1969] 2 All E.R. 150 at 152, CA) [97] First, the The Bank of Canada v Bank of Montreal, [1978] 1 SCR 1148, 76 DLR (3rd) 385 passage only paraphrases the actual text. More importantly, the passage identified is from page 1154 of a dissent by La......
  • Smitherman v. Powers et al., [2002] O.T.C. 377 (SC)
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    • Ontario Superior Court of Justice of Ontario (Canada)
    • May 10, 2002
    ...of both the Legislature and Legislation in 1867. [40] In Reference re Bill 30, an Act to amend the Education Act (Ontario) (1987) 1 S.C.R. 1148 Wilson, J. held that section 93 acted to freeze the protected rights of Catholic schools as at 1867. There was no explicit statutory right of eithe......
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4 books & journal articles
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    • Irwin Books Archive Bank and Customer Law in Canada
    • September 8, 2007
    ...No. 123 (C.A.) ................................................................... 252, 291 Bank of Canada v. Bank of Montreal (1977), [1978] 1 S.C.R. 1148, 76 D.L.R. (3d) 385 , [1977] S.C.J. No. 109 (S.C.C.) ................................ 39, 245 BANK AND CUSTOMER LAW 416 Bank of China......
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    • Canada
    • Irwin Books Bank and Customer Law in Canada. Second Edition
    • June 19, 2013
    ...257 , [1909] O.J. No. 123 (C.A.) ............................................265, 311 Bank of Canada v. Bank of Montreal (1977), [1978] 1 S.C.R. 1148, 76 D.L.R. (3d) 385 , [1977] S.C.J. No. 109 (S.C.C.) ..................... 40, 258, 276, 305, 310, 359 Bank of China v. Fan (2003), 2......
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