Question

CONTEMPORARY CANADIAN BUSINESS LAW: Chapter 11, Page 209, Case 7

Mary McDonald was an 86-year-old widow who lived in her own home. She complained frequently about the high cost of maintenance of her house and the high property taxes she paid. Mrs. McDonald eventually felt it was necessary to cancel her fire insurance to reduce her household expenses. However, she handled all her own business affairs, and maintained herself in her home. Mary’s daughter, a real-estate agent, was aware of her mother’s concern about her property. On a summer’s day, she drove to her mother’s home and informed her that she had some papers at the lawyer’s office, which would protect her. The two women went down to the lawyer’s office, where he advised Mary McDonald that the document was the deed to the property and required her signature. Mary briefly glanced at the document and said: “Where do I sign?” Some months later, the municipal tax bill arrived and Mary McDonald was surprised to see that the property was in her daughter’s name. She immediately brought a legal action against her daughter to have the property transferred back into her own name. Discuss the arguments that the parties might raise in this case and render a decision.

Answer 1

If we analyze this case, this is the typical case of fraud and breach of personal trust.

In order to prove that fraud was committed, Mary McDonald has to prove the following arguments=

First, she has to prove that she was disguised by both her daughter and her attorney to sign the documents by presenting the documents for protecting her against the additional expenses

Secondly, she has to prove that the documents were not having any clause of transfer of property and nor this was communicated to her by any of the two individuals

Thirdly she has to prove that this act was the breach of personal trust that she had on her daughter and the lawyer

On the other hand, the daughter has to prove the following elements to win the case=

Firstly Mary McDonald has read all the document when she quickly glanced the documents and asked where to sign

Secondly, she has to prove that Mary McDonald was aware of the document and it was the responsibility of the person to read the documents closely before signing the documents

If we look at the given case, the court should decide the judgment in the favor of Mary McDonald as she was deceived by her daughter and the lawyer. She trusted her daughter and believed that documents were for the protection against the additional expenses.