Banque Nationale du Canada v. Soucisse, Groulx and Robitaille, (1981) 43 N.R. 283 (SCC)

• Judge: Dickson, Beetz, Estey, Chouinard and Lamer, JJ.
• Court: Supreme Court (Canada)
• Case Date: September 28, 1981
• Jurisdiction: Canada (Federal)
• Citations: (1981), 43 N.R. 283 (SCC);EYB 1981-148709;43 NR 283;JE 81-938;AZ-81111080;[1981] 2 SCR 339;1981 CanLII 31 (SCC)

Nat. Bk. v. Soucisse (1981), 43 N.R. 283 (SCC)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Banque Nationale du Canada v. Soucisse, Groulx and Robitaille

Indexed As: Banque Nationale du Canada v. Soucisse, Groulx and Robitaille

Supreme Court of Canada

Dickson, Beetz, Estey, Chouinard and Lamer, JJ.

September 28, 1981.

Summary:

A man guaranteed to a bank the payment of the debts of a business. After the man's death the bank made advances of $107,271 to the business. The guarantee was revocable but the beneficiaries of the man's estate had no knowledge of the guarantee. The bank claimed $107,271 on the guarantee against the beneficiaries of the man's estate. The Quebec Superior Court allowed the bank's action. The beneficiaries appealed to the Quebec Court of Appeal.

The Quebec Court of Appeal allowed the appeal and dismissed the bank's action respecting the advances made after the man's death. The bank appealed to the Supreme Court of Canada.

The Supreme Court of Canada dismissed the appeal.

Banks and Banking - Topic 6568

Guarantees - Duties of bank - Notice to heirs on death of guarantor - A man guaranteed to a bank the payment of the debts of a business - After the man's death the bank made advances of $107,271 to the business - The guarantee was revocable but the beneficiaries of the man's estate had no knowledge of the guarantee - The bank claimed $107,271 on the guarantee against the beneficiaries - The Supreme Court of Canada affirmed the dismissal of the bank's action because of the failure of the bank to disclose to the beneficiaries the existence of the guarantee before making the advances of $107,271.

Cases Noticed:

Banque Canadienne Nationale v. Brousseau (1932), 70 C.S. 167, refd to. [para. 36].

Banque Provinciale du Canada v. Murray and Lapierre (1957), R.L. 7, refd to. [para. 36].

van B ... v. Receveur general de la loterie (1824-25), Pasicrisie Deuxieme Serie, 1814-40, Cours de Belgique, pp. 446-7, refd to. [para. 38].

Verdant v. Tournier (Dalloz, 1885, II, pp. 30 and 31), refd to. [para. 39].

Banque Populaire du Nord v. Maurice, Georges et al. (La Gazette du Palais, 1975, ler semestre, Jan.-Feb., pp. 321 and 322), refd to. [para. 42].

Banque regionale d'escompte et de depots v. Jeannin (Recueil Dalloz Sirey, January 9, 1980, p. 11), refd to. [para. 43].

Ervault et al. v. Banque Populaire de la region Ouest de Paris (Recueil Dalloz Sirey, January 14, 1981, p. 15), refd to. [para. 45].

Grandin et al. v. Banque nationale de Paris (1980, Bulletins des arrets de la Cour de Cassation, Chambres civiles, IV, No. 371, p. 299), refd to. [para. 46].

Grace and Company v. Perras (1921), 62 S.C.R. 166, refd to. [para. 65].

Industrial Fuel and Refrigeration Co. Ltd. v. Pennboro Coal Co., [1957] S.C.R. 160, refd to. [para. 67].

Gabias v. Mainville (1922), 33 Q.B. 32, refd to. [para. 68].

Stevenson v. Brique Champlain Ltee, [1943] Q.B. 196, refd to. [para. 68].

Larouche v. La Progressive, [1952] Q.B. 244, refd to. [para. 68].

Labrador Realties Ltd. v. Legault, [1960] C.S. 228, refd to. [para. 68].

Louis et Genet Entreprises Inc. v. Dube, [1962] C.S. 335, refd to. [para. 68].

Punger v. Serega, [1962] C.S. 702, refd to. [para. 68].

Schnabel v. Empire Life Insurance Co., [1970] C.S. 313, refd to. [para. 68].

Union Electric Supply Co. Ltd. v. Bourassa, [1964] R.L. 174, refd to. [para. 70].

Sinyor Spinners of Canada Ltd. v. Leesona Corp., [1976] C.A. 395, refd to. [para. 70].

Rawleigh v. Dumoulin, [1926] S.C.R. 551, refd to. [para. 70].

Statutes Noticed:

Quebec Civil Code, Art. 1024 [para. 49], 1730 [para. 67], 1929 [para. 24], 1937 [para. 27].

Authors and Works Noticed:

Tancelin, Chronique de jurisprudence (1970), 11 C. de D. 382 [para. 15].

Mouly, Christian, Les causes d'extinction du cautionnement (Paris, 1979, Librairies techniques, Libraire de la Cour de Cassation, page 458) [para. 15].

Revue trimestrielle de droit civil (1967), page 627 [para. 29].

Revue trimestrielle de droit commercial (1970), page 459 [para. 29].

Mignault, Droit civil canadien (1909) T. 8, page 342 [para. 35].

Trudel, Traite de droit civil du Quebec, Tome 7, page 328 [para. 49].

Pothier, Traite des obligations [para. 58].

Bugnet, M., Oeuvre de Pothier (3rd Ed. 1890), vol. 2, page 371 [para. 58].

Denisart, Collection de decisions, 1789, Tome 8, page 638 [para. 60].

Lemerle, L.L.F., Traite des fins de non recevoir, Nantes, 1819, page 2 [para. 61]; 144 [para. 69].

Heeney, A.D.P., Estoppel in the law of Quebec, (1930), 8 Can. Bar Rev. 401 [para. 67].

Wasserman, Gertrude, The doctrine of fins de nonrecevoir in Quebec law (with a comparative analysis of the English doctrine of estoppel), (1956), 34 Can. Bar Rev. 641 [para. 67].

Counsel:

Roger Reinhardt, for the appellant;

Donald W. Seal, Q.C., and Leonard Seidman, for the respondents.

This appeal was heard by DICKSON, BEETZ, ESTEY, CHOUINARD and LAMER, JJ., of the Supreme Court of Canada at Ottawa, Ontario on December 16, 1980.

The judgment of the Supreme Court of Canada was delivered by BEETZ, J., on September 28, 1981. The French language version of the judgment of BEETZ, J., is set out immediately following the English language version.