Garcia Transport Ltée v. Royal Trust Co.

Garcia Transport Ltée v. Royal Trust Co.

Although arts. 1202a et seq. C.C.L.C. are economic protective public order and a pre‑sale waiver of the discharge right is premature and therefore null, the respondent failed to follow the statutory procedure and act diligently to claim its discharge after the first sheriff's sale (notably art. 1202j and art. 599 C.C.P.), and did not plead or establish the narrow grounds under arts. 698‑699 C.C.P. to vacate the second sale; moreover the preliminary Superior Court ruling striking vacatur conclusions became res judicata. Accordingly the appeal is allowed and the respondent's action is dismissed.

Citation
[1992] 2 SCR 499
Parties
Appellant (trustee): Royal Trust Company; Appellant (beneficial Owner): Federal Business Development Bank; Respondent (debtor): Garcia Transport Ltée; Mis En Cause: Registrar for the division of Laprairie and the Sheriff for the district of Montreal
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
25 June 1992
Procedural Posture
Civil Appeal (discharge of Debtor; Sheriff's Sale; Waiver; Res Judicata) / Final Appeal to the Supreme Court of Canada From Quebec Court of Appeal
Outcome
Appeal allowed; judgment of the Quebec Court of Appeal reversed; respondent's action dismissed.
Legal Topics
Discharge of Debtor, Sheriff's Sale, Vacating Sale, Waiver of Statutory Rights, Economic Protective Public Order, Res Judicata, Hypothec
Source Language
English
Civil Law Civil Procedure Property Law Obligations Public Law (public Order) Discharge of Debtor Sheriff's Sale Vacating Sale +4 more

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Parties

Royal Trust Company

Appellant (trustee)

Federal Business Development Bank

Appellant (beneficial Owner)

Garcia Transport Ltée

Respondent (debtor)

Registrar for the division of Laprairie and the Sheriff for the district of Montreal

Mis En Cause

Procedural Posture

Civil Appeal (discharge of Debtor; Sheriff's Sale; Waiver; Res Judicata) / Final Appeal to the Supreme Court of Canada From Quebec Court of Appeal

Legal Issues

  1. 1 Are arts. 1202a et seq. C.C.L.C. provisions of economic protective public order?
  2. 2 Was the debtor's written waiver of rights under arts. 1202a et seq. C.C.L.C. valid?
  3. 3 Was the respondent entitled to be discharged after the first sheriff's sale?

Ratio Decidendi

Although arts. 1202a et seq. C.C.L.C. are economic protective public order and a pre‑sale waiver of the discharge right is premature and therefore null, the respondent failed to follow the statutory procedure and act diligently to claim its discharge after the first sheriff's sale (notably art. 1202j and art. 599 C.C.P.), and did not plead or establish the narrow grounds under arts. 698‑699 C.C.P. to vacate the second sale; moreover the preliminary Superior Court ruling striking vacatur conclusions became res judicata. Accordingly the appeal is allowed and the respondent's action is dismissed.

Court Disposition

Appeal allowed; judgment of the Quebec Court of Appeal reversed; respondent's action dismissed.

Orders

  • Appeal allowed
  • Judgment of the Court of Appeal reversed