Huffman et al. v. Spalding and Helgera Commodities Ltd., (1989) 56 Man.R.(2d) 317 (CA)

• Judge: Hall, O'Sullivan and Philp, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: January 24, 1989
• Jurisdiction: Manitoba
• Citations: (1989), 56 Man.R.(2d) 317 (CA)

Huffman v. Spalding (1989), 56 Man.R.(2d) 317 (CA)

MLB headnote and full text

Percival Knox Huffman, on behalf of all members in good standing of The Winnipeg Commodity Exchange (plaintiff/respondent) v. Gerald Trevor Spalding and Helgera Commodities Ltd. (defendants/appellants)

(Suit No. 374/88)

Indexed As: Huffman et al. v. Spalding and Helgera Commodities Ltd.

Manitoba Court of Appeal

Hall, O'Sullivan and Philp, JJ.A.

February 9, 1989.

Summary:

Spalding, a grain broker, and his company were found guilty of violating the bylaws of the Winnipeg Commodity Exchange and ordered to pay a fine and costs. Spalding and his company defaulted. The Winnipeg Commodity Exchange brought a civil action in debt to recover the fine and costs. The defendants objected to the jurisdiction of the court. The Winnipeg Commodity Exchange applied for a declaration that all its members agreed as a condition of membership that fines and costs constituted civil debts recoverable by civil action and a declaration that the defendants accepted the jurisdiction of the court to order payment of fines and costs.

The Manitoba Court of Queen's Bench, in a decision reported in 55 Man.R.(2d) 236, allowed the action. Spalding and his company appealed.

The Manitoba Court of Appeal allowed the appeal and dismissed the action.

Associations - Topic 3447

Actions by associations - Actions against members - Right to recover fines and costs from members - The Winnipeg Commodity Exchange was an unincorporated voluntary association of individuals formed to promote trade - The Association's Constitution provided for the levy of fines and costs against members under the Association's bylaws and that such monies were recoverable by civil action - The defendant members alleged that the court lacked jurisdiction to enforce penalty provisions which contracting parties had agreed should flow from a breach of contract - The Manitoba Court of Appeal held that the law respecting breach of contract applied - The court held that as a matter of policy and in the absence of statutory authority the courts should not accept jurisdiction to enforce penalties and costs imposed by the association on its members for breach of its constitution or bylaws.

Counsel:

P.V. Walsh, Q.C., for the appellants;

W.C. Kushneryk, Q.C., and D.R.M. Jackson, for the respondent.

This appeal was heard before Hall, O'Sullivan and Philp, JJ.A., of the Manitoba Court of Appeal on January 24, 1989. The decision of the Court of Appeal was delivered by Hall, J.A., on February 9, 1989.