Farm Credit Canada v. Wolfridge Farm Ltd.

Farm Credit Canada v. Wolfridge Farm Ltd.

The motions were dismissed: the defendants failed to satisfy the three-part test to set aside the default judgment (no reasonable explanation for failing to file a defence, no prima facie defence on the merits, and undue delay), there was no basis to stay the foreclosure based on recognition of the US Chapter 11, the foreclosure sale was ordered to proceed, and the Court varied the foreclosure order to add specific bidder/completion protections; costs awarded to FCC reserved for later submission.

Citation
2015 NSSC 240
Parties
Plaintiff/respondent: Farm Credit Canada; Defendant/applicant: Wolfridge Farm Limited; Defendant/applicant: John Early; Defendant/applicant: Lydia Early
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
19 August 2015
Procedural Posture
Foreclosure; Motion to Set Aside Default Judgment; Recognition of Foreign Insolvency Proceeding / Decision on Motions in Chambers
Outcome
Motions dismissed; foreclosure sale ordered to proceed; Order amended to add bidder completion provisions; costs awarded to Farm Credit Canada reserved for later determination.
Legal Topics
Foreclosure, Set Aside Default Judgment, Recognition of Foreign Bankruptcy/chapter 11, Stay of Proceedings, Costs
Source Language
English
Property Law Insolvency Law Civil Procedure Foreclosure Set Aside Default Judgment Recognition of Foreign Bankruptcy/chapter 11 Stay of Proceedings Costs

Case Brief

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Parties

Farm Credit Canada

Plaintiff/respondent

Wolfridge Farm Limited

Defendant/applicant

John Early

Defendant/applicant

Lydia Early

Defendant/applicant

Procedural Posture

Foreclosure; Motion to Set Aside Default Judgment; Recognition of Foreign Insolvency Proceeding / Decision on Motions in Chambers

Legal Issues

  1. 1 Whether the default judgment and resulting foreclosure sale should be set aside under Rules 8.09 and 8.10
  2. 2 Whether WFL's US Chapter 11 should be recognized as a foreign main proceeding and thereby stay the foreclosure pursuant to s.271 BIA
  3. 3 Whether the Court should exercise inherent jurisdiction to vary the foreclosure order

Ratio Decidendi

The motions were dismissed: the defendants failed to satisfy the three-part test to set aside the default judgment (no reasonable explanation for failing to file a defence, no prima facie defence on the merits, and undue delay), there was no basis to stay the foreclosure based on recognition of the US Chapter 11, the foreclosure sale was ordered to proceed, and the Court varied the foreclosure order to add specific bidder/completion protections; costs awarded to FCC reserved for later submission.

Court Disposition

Motions dismissed; foreclosure sale ordered to proceed; Order amended to add bidder completion provisions; costs awarded to Farm Credit Canada reserved for later determination.

Orders

  • The defendants' motions to set aside the default judgment and to cancel the August 7, 2015 foreclosure sale are dismissed.
  • The foreclosure sale shall proceed at 12:00 noon in Kentville as scheduled.