C.L. Hagan Transportation Ltd. v. Canadian Acceptance Corp.

C.L. Hagan Transportation Ltd. v. Canadian Acceptance Corp.

Section 18(1) confines the remedies available against a purchaser but does not extinguish or negate the seller's contractual liability to its assignee; statutory protection of the purchaser does not extend to defeat private recourse arrangements between seller and assignee, therefore the assignee may recover from...

Source-derived case information.

Citation
[1974] SCR 491
Parties
Defendant/appellant: C.L. Hagan Transportation Ltd.; Plaintiff/respondent: Canadian Acceptance Corporation Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
29 June 1973
Procedural Posture
Collection (conditional Sale/chattel Mortgage) / Appeal to Supreme Court of Canada From the Court of Appeal for Saskatchewan (final Disposition)
Outcome
Appeal dismissed
Legal Topics
Chattel Mortgage, Assignment of Mortgage, Recourse Agreement Between Seller and Assignee, Enforceability of Guarantee, Limitation of Civil Rights Act S.18
Source Language
english
Sale Security Interests Contract Law Guarantee Law Statutory Limitations Chattel Mortgage Assignment of Mortgage Recourse Agreement Between Seller and Assignee +2 more

Source-derived case record

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Parties

C.L. Hagan Transportation Ltd.

Defendant/appellant

Canadian Acceptance Corporation Limited

Plaintiff/respondent

Procedural Posture

Collection (conditional Sale/chattel Mortgage) / Appeal to Supreme Court of Canada From the Court of Appeal for Saskatchewan (final Disposition)

Legal Issues

  1. 1 Whether assignee of a chattel mortgage is precluded by s.18(1) from recovering the unpaid purchase money from the assignor when purchaser defaults and chattel is not repossessed
  2. 2 Whether a guarantee or indemnity by the seller is unenforceable where the purchaser's primary obligation is restricted or rendered unenforceable by statute
  3. 3 Whether s.18 extinguishes the seller's liability to its assignee or merely restricts remedies against the purchaser

Ratio Decidendi

Section 18(1) confines the remedies available against a purchaser but does not extinguish or negate the seller's contractual liability to its assignee; statutory protection of the purchaser does not extend to defeat private recourse arrangements between seller and assignee, therefore the assignee may recover from the assignor under the guarantee/indemnity.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs