Donohue v. Lefaivre

Donohue v. Lefaivre

Leave to appeal was granted because the appeal involves a question of public interest (whether Quebec's registration rule affects unregistered transfers in bankruptcy) and there was a real doubt whether the appellate court's factual finding that the creditor knew of the debtor's insolvency was sufficiently strong to overcome the trial judge's contrary finding.

Citation
[1928] SCR 434
Parties
Appellant (creditor): Charles Donohue; Respondent (trustee): Ernest Lefaivre; Debtor: Neuville Belleau
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 April 1928
Procedural Posture
Application for Special Leave to Appeal Under S.74(3) of the Bankruptcy Act / Leave to Appeal Application (in Chambers) From Court of King’s Bench, Appeal Side, Quebec
Outcome
Application for special leave to appeal granted.
Legal Topics
Registration of Share Transfers, Validity of Unregistered Security in Bankruptcy, Knowledge of Debtor's Insolvency, Presumption of Fact Vs. Trial Judge's Finding, Leave to Appeal and Public Interest
Source Language
English
Bankruptcy Company Law Appeal Registration of Share Transfers Validity of Unregistered Security in Bankruptcy Knowledge of Debtor's Insolvency Presumption of Fact Vs. Trial Judge's Finding Leave to Appeal and Public Interest

Case Brief

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Parties

Charles Donohue

Appellant (creditor)

Ernest Lefaivre

Respondent (trustee)

Neuville Belleau

Debtor

Procedural Posture

Application for Special Leave to Appeal Under S.74(3) of the Bankruptcy Act / Leave to Appeal Application (in Chambers) From Court of King’s Bench, Appeal Side, Quebec

Legal Issues

  1. 1 Whether art.6003 of the Quebec Companies Act (no effect of unregistered share transfers) applies in bankruptcy to defeat an unregistered transfer held as security by a creditor
  2. 2 Whether the creditor Donohue had knowledge of the debtor's insolvency at the time of the transfer and whether that factual finding by the trial judge should be overturned
  3. 3 Whether leave to appeal should be granted where a question of public interest is involved even though the appellate court did not base its decision on that point

Ratio Decidendi

Leave to appeal was granted because the appeal involves a question of public interest (whether Quebec's registration rule affects unregistered transfers in bankruptcy) and there was a real doubt whether the appellate court's factual finding that the creditor knew of the debtor's insolvency was sufficiently strong to overcome the trial judge's contrary finding.

Court Disposition

Application for special leave to appeal granted.

Orders

  • Leave to appeal granted under s.74(3) of the Bankruptcy Act