Dowsley v. British Canadian Trust Co.

Dowsley v. British Canadian Trust Co.

On construction the agreement gave the appellant at most an equitable interest as security for his 5% managerial commission and constituted a contract for personal services which terminated on the bankruptcy assignment; the appellant therefore had no personal right to possession after assignment, there was no public change of possession of chattels under the Bills of Sale Act, and the trustee was protected by s.54 of the Bankruptcy Act, so the trustee lawfully took possession.

Citation
[1933] SCR 115
Parties
Appellant / Plaintiff: C. L. Dowsley; Respondent / Defendant: British Canadian Trust Company
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
23 December 1932
Procedural Posture
Contract; Bankruptcy; Equity / Appeal to Supreme Court of Canada From Appellate Division of the Supreme Court of Alberta
Outcome
Appeal dismissed; judgment of the Appellate Division of the Supreme Court of Alberta affirmed (majority decision)
Legal Topics
Equitable Interest, Possession and Control, Assignment in Bankruptcy, Fraudulent Preference, Bills of Sale Act Change of Possession, Personal Services Contract, Trustee's Rights
Source Language
English
Contract Bankruptcy Property Equity Equitable Interest Possession and Control Assignment in Bankruptcy Fraudulent Preference +3 more

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Parties

C. L. Dowsley

Appellant / Plaintiff

British Canadian Trust Company

Respondent / Defendant

Procedural Posture

Contract; Bankruptcy; Equity / Appeal to Supreme Court of Canada From Appellate Division of the Supreme Court of Alberta

Legal Issues

  1. 1 Whether the agreement vested in the manager an equitable title and right to possession and control of theatre property
  2. 2 Whether the agreement was essentially a contract for personal services or a transfer/security of property interests
  3. 3 Whether the trustee in bankruptcy could lawfully dispossess the manager after assignment

Ratio Decidendi

On construction the agreement gave the appellant at most an equitable interest as security for his 5% managerial commission and constituted a contract for personal services which terminated on the bankruptcy assignment; the appellant therefore had no personal right to possession after assignment, there was no public change of possession of chattels under the Bills of Sale Act, and the trustee was protected by s.54 of the Bankruptcy Act, so the trustee lawfully took possession.

Court Disposition

Appeal dismissed; judgment of the Appellate Division of the Supreme Court of Alberta affirmed (majority decision)

Orders

  • Appeal dismissed with costs