ABSTRACT
Facts: Community Savings Credit Union seeks judgment against the defendant Union in the amount of $80,000 pursuant to an Indemnity Agreement provided to the Credit Union as partial security for a line of credit to be provided by the Credit Union to the Victoria Building Co-operative Union. In these reasons I will refer to the plaintiff as the Credit Union, the defendant as the Plumbers’ Union and the Victoria Building Co-operative Union as the Co-op. The Indemnity Agreement upon which this action is based was signed by the Plumbers’ Union business agent, Ivan Crossett (‘Mr Crossett’), without formal authorisation from the Plumbers’ Union. The defendant has counterclaimed to recover the $80,000 term deposit plus accumulated interest. The main issue is whether the Credit Union can rely on the ostensible authority of the business agent, Mr Crossett.
