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Hawrelak v. City of Edmonton

[1976] 1 SCR 387 Court SCC Decision date 1975-03-06 English

PartiesWilliam Hawrelak (Defendant) Appellant·The City of Edmonton (Plaintiff) Respondent

Counsel (4)
B.J. MacKinnon, Q.C., and J.E. Sexton, for the defendant, appellant.
W.A. McGillivray, Q.C., and J.W. Rose, for the plaintiff, respondent.
Solicitors for the defendant, appellant: Wood, Moir, Hyde & Ross, Edmonton.
Solicitors for the plaintiff, respondent: Fenerty, McGillivray, Robertson, Prowse, Brennan, Fraser, Bell & Hatch, Calgary.

Judges Laskin, Bora; Judson, Wilfred; Spence, Wishart Flett; Dickson, Robert George Brian; de Grandpré, Louis-Philippe

Delivered by Majority

On appeal from Alberta

Subjects Municipal law

Contents

The judgment of Dickson and de Grandpré JJ. was delivered by

A member of a Municipal Council is an agent or trustee accountable to the Municipality whose affairs he administers, and accordingly his duties are of a fiduciary nature.
No-one entrusted with duties of a fiduciary nature may enter into any transaction in which his personal

[Page 417]

interest is or may be in conflict with the interests of his principal.
It is immaterial to the application of the rule whether the principal did or did not suffer any injury by reason of the dealing of the agent.
It is immaterial to the application of the rule whether or not the agent or trustee acted in good faith.
Any gain or advantage arising out of such a transaction must be considered as accruing to the principal.

Footnotes

  1. [1] [1973] 1 W.W.R. 179, 31 D.L.R. (3d) 498.
  2. [2] (1854), 4 Gr. 489, aff’d. 6 Gr. 1, aff’d. 11 Moo. P.C. 463, 14 E.R. 770.
  3. [3] [1974] S.C.R. 592.
  4. [4] [1953] 2 S.C.R. 438.
  5. [5] (1965), 53 W.W.R. 257, 53 D.L.R. (2d) 353.
  6. [6] [1966] S.C.R. v, 53 D.L.R. (2d) 673.
  7. [7] (1854), 4 Gr. 489, aff’d. 6 Gr. 1.
  8. [8] [1942] 1 All E.R. 378.
  9. [9] [1958] S.C.R. 314.
  10. [10] [1966] S.C.R. 673.
  11. [11] [1948] 2 K.B. 268.
  12. [12] [1892] 2 Q.B. 524.
  13. [13] (1856), 6 Gr. 1.
  14. [14] [1967] 2 A.C. 134.
  15. [15] [1958] S.C.R. 314.
  16. [16] [1966] S.C.R. 673.
  17. [17] (1907), 39 S.C.R. 614.
  18. [18] (1858), 11 Moo. P.C. 463, 14 E.R. 770.
  19. [19] (1854), 23 L.T.O.S. 315.