Krook et al. v. Yewchuk et al.

Krook et al. v. Yewchuk et al.

The chattel mortgage constituted an independent security collateral to the land mortgage in a single combined sale of land and chattels and was not an indirect attempt to enforce the personal covenant in the land mortgage; s.34(17) of The Judicature Act does not invalidate enforcement of such collateral chattel security and neither The Seizures Act nor s.19 of The Conditional Sales Act precluded foreclosure of the chattel mortgage; accordingly the appellate court's refusal to foreclose the chattels was reversed and the trial judgment restoring foreclosure of land and chattels was upheld.

Citation
[1962] SCR 535
Parties
Plaintiff Appellant: Andrew Krook; Plaintiff Appellant: Barbara Krook; Plaintiff Appellant: Ivan Krook; Plaintiff Appellant: George Krook; Defendant Respondent: Peter Yewchuk; Defendant Respondent: Mike Panas
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
11 June 1962
Procedural Posture
Appeal / Supreme Court of Canada Decision on Appeal From the Appellate Division of the Supreme Court of Alberta
Outcome
Appeal allowed; judgment of trial judge restored; appellants awarded costs.
Legal Topics
Mortgage, Chattel Mortgage, Foreclosure, Statutory Interpretation, Conditional Sales, Distress/seizure
Source Language
English
Property Law Civil Procedure Secured Transactions Mortgage Chattel Mortgage Foreclosure Statutory Interpretation Conditional Sales +1 more

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Parties

Andrew Krook

Plaintiff Appellant

Barbara Krook

Plaintiff Appellant

Ivan Krook

Plaintiff Appellant

George Krook

Plaintiff Appellant

Peter Yewchuk

Defendant Respondent

Mike Panas

Defendant Respondent

Procedural Posture

Appeal / Supreme Court of Canada Decision on Appeal From the Appellate Division of the Supreme Court of Alberta

Legal Issues

  1. 1 Whether s.34(17) of The Judicature Act invalidates or precludes foreclosure of a chattel mortgage collateral to a land mortgage
  2. 2 Whether the bill of sale consideration and sequence of documents meant the chattels were paid for and the chattel mortgage was merely an indirect attempt to enforce the land mortgage covenant
  3. 3 Whether The Seizures Act precludes court foreclosure of a chattel mortgage by limiting distress remedies

Ratio Decidendi

The chattel mortgage constituted an independent security collateral to the land mortgage in a single combined sale of land and chattels and was not an indirect attempt to enforce the personal covenant in the land mortgage; s.34(17) of The Judicature Act does not invalidate enforcement of such collateral chattel security and neither The Seizures Act nor s.19 of The Conditional Sales Act precluded foreclosure of the chattel mortgage; accordingly the appellate court's refusal to foreclose the chattels was reversed and the trial judgment restoring foreclosure of land and chattels was upheld.

Court Disposition

Appeal allowed; judgment of trial judge restored; appellants awarded costs.

Orders

  • Appeal allowed with costs
  • Judgment of trial judge restored ordering foreclosure of the mortgaged lands and goods and chattels with six months redemption period, extendable to twelve months upon payment of $750 per month and right to apply for further extension