Merchants Bank of Canada v. Hagman

Merchants Bank of Canada v. Hagman

The Supreme Court held that the notice of assessment addressed to the Queen's Hotel and received by the resident manager satisfied the statutory notice requirements under the Town Act, validating the distress sale; accordingly the purchaser's claim was upheld and the appellant's challenge failed, so the appeal was dismissed with costs.

Citation
(1918) 59 SCR 662
Parties
Appellant (chattel Mortgagee and Execution Creditor): Merchants Bank of Canada; Respondent (purchaser at Municipal Tax Sale): Hagman; Interested Co Owners (three Co Owners; Manager Cyre Resident in Vegreville): Queen's Hotel (owners)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 October 1918
Procedural Posture
Appeal / Judgment on Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta
Outcome
Appeal dismissed with costs; judgment of the Appellate Division of the Supreme Court of Alberta affirmed; respondent's interpleader claim maintained.
Legal Topics
Notice of Assessment, Distress and Sale for Taxes, Co Ownership, Chattel Mortgage, Interpleader
Source Language
English
Taxation Municipal Law Property Law Civil Procedure Notice of Assessment Distress and Sale for Taxes Co Ownership Chattel Mortgage +1 more

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Parties

Merchants Bank of Canada

Appellant (chattel Mortgagee and Execution Creditor)

Hagman

Respondent (purchaser at Municipal Tax Sale)

Queen's Hotel (owners)

Interested Co Owners (three Co Owners; Manager Cyre Resident in Vegreville)

Procedural Posture

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

Legal Issues

  1. 1 Whether notice of assessment addressed to premises and received by one co-owner/manager satisfied statutory notice requirements under the Town Act ss.301,302,317
  2. 2 Whether a distress sale for unpaid municipal taxes is invalid for failure to give notice to all co-owners
  3. 3 Whether purchaser at a municipal tax sale obtains title superior to a prior chattel mortgagee and execution creditor when notice procedures are questioned

Ratio Decidendi

The Supreme Court held that the notice of assessment addressed to the Queen's Hotel and received by the resident manager satisfied the statutory notice requirements under the Town Act, validating the distress sale; accordingly the purchaser's claim was upheld and the appellant's challenge failed, so the appeal was dismissed with costs.

Court Disposition

Appeal dismissed with costs; judgment of the Appellate Division of the Supreme Court of Alberta affirmed; respondent's interpleader claim maintained.

Orders

  • Appeal dismissed with costs.
  • Respondent's claim as purchaser at the municipal tax sale maintained; title validated.