Gastonguay v. Savoie

J.-Upon the ground that the inspector to an insolvent estate cannot be allowed to purchase any of the property of the insolvent, as the respondent has done, I would allow the appeal and annul this sale. It is a principle of law which courts of justice are bound to strictly apply that no one having duties of a fiduciary character to discharge should be allowed to put his duties in conflict with his interest.

Davis v. Kerr at page 246.

That is the principle upon which are based articles

1484 and 1706 of the Civil Code, and article 748 of the Code of Procedure.

The respondent himself alleges that it was upon the advice of the inspectors that this property was sold as two separate lots. This shows that the inspectors have more to do with the sale of the insolvent's estate than he contended for at the argument. They advise merely, it is true, but that advice must be wholly disinterested, and, for instance, the very time or season chosen by them for the sale may be one where the property is likely to be sold at a lower rate, and if they are allowed to buy, their interest would be adverse to the creditors' interests.

I cannot divest my mind of the opinion that it would be opening the door to frauds if the courts failed to forbid such dealings.

Such was Mr. Justice Ouimet's opinion in the Court of Appeal, and I fully share in it.

Appeal allowed with costs, and petition to set aside sale granted with costs.

Appeal allowed with costs.

Nol.

Girouard.