Provost & Provost (1961) Limitée v. Spot Supermarkets Corporation et al.

Provost & Provost (1961) Limitée v. Spot Supermarkets Corporation et al.

Because the disputed goods were not specifically identified (counted, weighed or measured) prior to the winding‑up of the seller as required by article 1474 of the Civil Code, title did not pass to the appellant and it only held a pecuniary claim against the insolvent estate; accordingly the intervenant’s purchase from the liquidators was not subject to an enforceable right in rem by the appellant.

Citation
[1969] SCR 427
Parties
Petitioner/appellant: Provost & Provost (1961) Limitée; Intervenant/respondent: Spot Supermarkets Corporation; Debtor (insolvent): Conserverie St-Denis Limitée; Mis En Cause (liquidator): Armand Gagnon; Mis En Cause (liquidator): Lloyd H. Paul
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
28 January 1969
Procedural Posture
Civil Appeal — Sale of Goods in Insolvency / On Appeal to the Supreme Court of Canada From the Court of Queen’s Bench, Province of Quebec (appeal Side) — Final Appeal Heard Jan 28, 1969
Outcome
Appeal dismissed
Legal Topics
Identification of Goods, Transfer of Ownership, Rights in Rem Vs Personal Claims, Liquidator Sale of Stock in Trade, Civil Code Article 1474
Source Language
English
Sale Insolvency Property Law Commercial Law Identification of Goods Transfer of Ownership Rights in Rem Vs Personal Claims Liquidator Sale of Stock in Trade +1 more

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Parties

Provost & Provost (1961) Limitée

Petitioner/appellant

Spot Supermarkets Corporation

Intervenant/respondent

Conserverie St-Denis Limitée

Debtor (insolvent)

Armand Gagnon

Mis En Cause (liquidator)

Lloyd H. Paul

Mis En Cause (liquidator)

Procedural Posture

Civil Appeal — Sale of Goods in Insolvency / On Appeal to the Supreme Court of Canada From the Court of Queen’s Bench, Province of Quebec (appeal Side) — Final Appeal Heard Jan 28, 1969

Legal Issues

  1. 1 Whether ownership of goods paid for in advance but not delivered passed to the buyer where goods were not counted, weighed or measured before the seller’s winding‑up order
  2. 2 Whether a purchaser of the insolvent’s stock in trade acquires rights in rem over goods the insolvent had contracted to sell but had not identified at liquidation
  3. 3 Application and effect of Civil Code (Quebec) article 1474 on identification and passing of title

Ratio Decidendi

Because the disputed goods were not specifically identified (counted, weighed or measured) prior to the winding‑up of the seller as required by article 1474 of the Civil Code, title did not pass to the appellant and it only held a pecuniary claim against the insolvent estate; accordingly the intervenant’s purchase from the liquidators was not subject to an enforceable right in rem by the appellant.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Judgment of the Court of Queen’s Bench reversing the trial judge is affirmed