Central Trust Co. v. Rafuse, [1986] 2 S.C.R. 147 is a leading decision of the Supreme Court of Canada on liability of solicitors in negligence and breach of contract as well as the doctrine of discoverability under the Statute of Limitations.
Jack Rafuse and Franklyn Cordon were solicitors hired by a company that had purchased the shares of Stonehouse Motel and Restaurant Limited. The agreement of sale required that the purchasers take out a mort...
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Central Trust Co. v. Rafuse, [1986] 2 S.C.R. 147 is a leading decision of the Supreme Court of Canada on liability of solicitors in negligence and breach of contract as well as the doctrine of discoverability under the Statute of Limitations.
Jack Rafuse and Franklyn Cordon were solicitors hired by a company that had purchased the shares of Stonehouse Motel and Restaurant Limited. The agreement of sale required that the purchasers take out a mortgage on the property and use the assets used as part of the purchase price of the shares. The solicitors had been retained in order to complete the mortgage transaction.
Eight years later the creditor for the mortgage, Central Trust Co., initiated a foreclosure of the mortgage. The creditor, Irving Oil tried to prevent the foreclosure by claiming that the mortgage was invalid. The case went to the Supreme Court of Canada and in the decision of Central and Eastern Trust Co. v. Irving Oil Ltd., [1980] 2 S.C.R. 29 the mortgage was invalidated....
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