Halleran v. O'Neill Brothers Auto Ltd., (1971) 1 Nfld. & P.E.I.R. 455 (NFCA)

• Judge: Furlong, C.J., Puddester and Mifflin, JJ.
• Court: Newfoundland Court of Appeal
• Case Date: July 06, 1971
• Jurisdiction: Newfoundland and Labrador
• Citations: (1971), 1 Nfld. & P.E.I.R. 455 (NFCA)

Halleran v. O'Neill Bros. (1971), 1 Nfld. & P.E.I.R. 455 (NFCA)

MLB headnote and full text

Halleran v. O'Neill Brothers Auto Limited

Indexed As: Halleran v. O'Neill Brothers Auto Ltd.

Newfoundland Supreme Court

On Appeal

Furlong, C.J., Puddester and Mifflin, JJ.

July 6, 1971.

Summary:

Appeal Court dismissed appeal and affirmed the decision of the trial Court granting rescission of the contract of a sale of a used automobile and ordering repayment of the purchase price of $2,856. Defendant dealer had reduced the registered mileage on the odometer of the automobile shortly before sale from 45,000 to 24,000 miles.

Appeal Court held that the altered odometer constituted fraudulent misrepresentation and that damages were not a suitable remedy and that rescission should be granted. Court held that the purchaser had not affirmed the contract after discovering the fraud by retaining the automobile and attempting to sell it and by putting it into condition for sale.

Fraud and Misrepresentation - Topic 407

Contract - Rescission - Fraudulent misrepresentation - Dealer sold used automobile after reducing registered mileage on odometer - The Newfoundland Court of Appeal affirmed decision granting rescission of contract of sale.

Cases Noticed:

Clough v. London & N.W. Ry. (1871), L.R. 7 Exch. 26, folld.

Leaf v. International Galleries, [1950] 2 K.B. 86, folld.

O'Flaherty v. McKinlay (1951), 30 M.P.R. 172, dist.

Counsel:

Isaac Mercer, Q.C., for the plaintiff, respondent;

Raymond J. Halley, for the defendant, appellant.

The judgment of the Court was delivered by Furlong, C.J.