A. R. Williams Machinery & Supply Co. Ltd. v. Morin

A. R. Williams Machinery & Supply Co. Ltd. v. Morin

The appeal was allowed because the respondent, by filing and prosecuting a claim in the bankruptcy as unpaid vendor and by conduct treating the property as part of the bankrupt's estate, elected that remedy and could not subsequently invoke a landlord's privilege under art.1622 C.C. against the appellant's goods; further, the saisie-gagerie was incompetent because instituted without the leave required by s.126 of the Bankruptcy Act, so the appellant's intervention to recover its machines should have been granted.

Citation
[1933] SCR 570
Parties
Appellant (intervenant): A. R. Williams Machinery & Supply Company, Limited; Respondent (plaintiff): Dame Marie Stella Morin
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 June 1933
Procedural Posture
Appeal / Supreme Court of Canada on Appeal From Court of King's Bench, Appeal Side, Province of Quebec
Outcome
Appeal allowed; intervention of appellant granted; saisie-gagerie annulled insofar as it affected appellant's property; costs awarded to appellant
Legal Topics
Conditional Sale, Lease Disguised as Sale, Landlord Privilege (art.1622 C.c.), Saisie Gagerie, Bankruptcy Act S.126, Election of Remedies
Source Language
English
Contract Bankruptcy Civil Procedure Property Law Conditional Sale Lease Disguised as Sale Landlord Privilege (art.1622 C.c.) Saisie Gagerie +2 more

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Parties

A. R. Williams Machinery & Supply Company, Limited

Appellant (intervenant)

Dame Marie Stella Morin

Respondent (plaintiff)

Procedural Posture

Appeal / Supreme Court of Canada on Appeal From Court of King's Bench, Appeal Side, Province of Quebec

Legal Issues

  1. 1 Whether an instrument styled as a lease and promise of sale can be invoked by the vendor to claim a landlord's privilege under art.1622 C.C. against goods of a third party on the premises
  2. 2 Whether filing a claim in bankruptcy as unpaid vendor constitutes an election precluding later reliance on landlord remedies
  3. 3 Whether a saisie-gagerie taken without leave of the bankruptcy court under s.126 of the Bankruptcy Act is competent

Ratio Decidendi

The appeal was allowed because the respondent, by filing and prosecuting a claim in the bankruptcy as unpaid vendor and by conduct treating the property as part of the bankrupt's estate, elected that remedy and could not subsequently invoke a landlord's privilege under art.1622 C.C. against the appellant's goods; further, the saisie-gagerie was incompetent because instituted without the leave required by s.126 of the Bankruptcy Act, so the appellant's intervention to recover its machines should have been granted.

Court Disposition

Appeal allowed; intervention of appellant granted; saisie-gagerie annulled insofar as it affected appellant's property; costs awarded to appellant

Orders

  • Intervention granted to A. R. Williams Machinery & Supply Company, Limited
  • Saisie-gagerie declared null and void and machines released to appellant