whatever out of the property in respect to which it had placed the insurance, which could be taxed for the period B.C. Fi & in question. There are, therefore, no profits to tax and, in Co. the absence of clear language authorizing such a course, I KIN. find nothing in the statute to warrant the taxing of money
Anglin substituted for the profits by way of indemnity for their
C.J.C. loss.
Solicitor for the appellant: C. H. Locke.
Solicitor for the respondent: E. Pepler.
LA CORPORATION DE LA PAROISSE
DE ST-GERVAIS
(DEFENDANT) ......
AN
*Feb.25. *Apr. 28. AND
ALFRED GOULET (PLAINTIFF) ..........
.RESPONDENT.
ON APPEAL FROM THE KING'S BENCH, APPEAL SIDE,
PROVINCE
Municipal corporation-By-law authorizing works-Action by ratepayer- Annulment-Contractors mis-en-cause in trial court-Not joined in the proceedings before appellate court-Judgment in appeal annulling contract-Nullity-Res judicata.
The respondent, a ratepayer, brought an action against the appellant municipal corporation for the annulment of a by-law and contracts authorizing the construction of three bridges; and he joined in the case the contractors to whom were awarded the contracts. The trial judge having dismissed the action, the respondent appealed from that judgment but only against the municipal corporation.
The appellate court declared the by-law valid, but annulled the contracts.
Held that an appellate court, the same as the trial judge, cannot pronounce the nullity of a contract when all the contracting parties have not been called before the court; that in this case the contractors were not made parties in the proceedings before the appellate court;
that it is now impossible to order that they should be joined in proceedings before this court or the appellate court as the decision of the trial judge has acquired the authority of res judicata as to them.
Therefore, the appellate court could not validly render a judgment annulling the contracts, and the judgment appealed from must be reversed.
APPEAL from the decision of the Court of King's Bench, appeal side, province of Quebec, reversing the judgment of the trial judge, Lemieux C.J., and maintaining the respondent's action.
*PRESENT:-Duff, Newcombe, Rinfret, Lamont and Cannon JJ.