Supreme Court of Canada
Bennett v. Havelock Electric Light Co., (1912) 46 S.C.R. 640
Date: 1912-02-22
Bennett
and
Havelock Electric Light Co.
1912: February 20, 22.
Present: Sir Charles Fitzpatrick C.J. and Idington, Duff, Anglin and Brodeur JJ.
ON APPEAL FROM THE COURT OF APPEAL FOR ONTARIO.
Company—Purchase of director’s property—Secret profit.
APPEAL from a decision of the Court of Appeal for Ontario, reversing the judgment of a Divisional Court, by which the judgment at the trial, dismissing the action, was reversed.
Mathieson, a resident of the Village of Havelock, purchased the only water-power in the village, capable of producing electric power, for $300. He offered it to the municipal council, or any company, at the same price if either would undertake to establish a system of electric lighting and electric power, but could not induce any one to do so. He then associated himself with four other persons and a company was formed, the five pledging their own credit for the necessary funds. Mathieson sold the water-power to the company for $5,000, which he divided with his four associates.
Bennett and another shareholder in the company brought action to have the sale set aside and an account taken of the secret profit made by the five. His action was dismissed by the trial judge, but maintained by the Divisional Court, where judgment was entered against the four defendants, Mathieson being discharged from liability, for $1,000 each. The Court
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of Appeal reversed the latter judgment and the action stood dismissed.
The plaintiffs then sought to appeal to the Supreme Court of Canada, but, on motion therefor, the appeal was quashed on the ground that there was no joint liability of the defendants and none of them was liable for a sum exceeding $1,000.
Appeal quashed with costs.
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