Armstrong's Communication Ltd. v. Sure Safe Security Systems Inc.

Armstrong's Communication Ltd. v. Sure Safe Security Systems Inc.

Armstrong's holds a security interest under the PPSA in the 222 customer accounts identified by the October 30, 2000 and November 5, 2002 agreements and is entitled to maintain PPSA registration only in respect of those 222 accounts; its registrations over all of Sure Safe's accounts are excessive and must be amended to reflect only the 222 accounts.

Citation
2007 NSSC 299
Parties
Applicant/plaintiff: Armstrong's Communication Limited; Respondent/defendant: Sure Safe Security Systems Incorporated
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
12 October 2007
Procedural Posture
Civil (ppsa Application) / Application Hearing/decision
Outcome
Application granted in part: registrations maintained only as to the 222 accounts transferred under the 2000 and 2002 agreements; other registrations or claims to all accounts rejected; costs awarded to neither party.
Legal Topics
Financing Statement, Security Interest, Transfer of Accounts, Registration, Deemed Security Interest, PPSA S.51 Demand
Source Language
English
Personal Property Security Commercial Law Contract Law Property Law Financing Statement Security Interest Transfer of Accounts Registration +2 more

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Parties

Armstrong's Communication Limited

Applicant/plaintiff

Sure Safe Security Systems Incorporated

Respondent/defendant

Procedural Posture

Civil (ppsa Application) / Application Hearing/decision

Legal Issues

  1. 1 Whether Armstrong's had a security interest in customer accounts capable of PPSA registration
  2. 2 Whether Armstrong's PPSA registrations over all Sure Safe customer accounts were valid or must be limited to the accounts transferred by agreement
  3. 3 Whether the 2000 and 2002 agreements constituted transfers (deemed security interests) under the PPSA

Ratio Decidendi

Armstrong's holds a security interest under the PPSA in the 222 customer accounts identified by the October 30, 2000 and November 5, 2002 agreements and is entitled to maintain PPSA registration only in respect of those 222 accounts; its registrations over all of Sure Safe's accounts are excessive and must be amended to reflect only the 222 accounts.

Court Disposition

Application granted in part: registrations maintained only as to the 222 accounts transferred under the 2000 and 2002 agreements; other registrations or claims to all accounts rejected; costs awarded to neither party.

Orders

  • Maintain PPSA registration only in respect of the 222 customer accounts described in the October 30, 2000 and November 5, 2002 agreements
  • Armstrong's to file an amendment to its financing statement(s) to reflect only the 222 customer accounts