9049-4907 Québec Inc. v. Metromec Equipment Inc.

9049-4907 Québec Inc. v. Metromec Equipment Inc.

The claim for priority failed because the professional fees were incurred at the debtor's instruction for the debtor's individual interest and not in the common interest of creditors, so they do not fall within the priority in article 2651(1) C.C.Q.; therefore the motion is dismissed.

Citation
2004 FC 792
Parties
Debtor: 9049-4907 Québec Inc.; Garnishee: Metromec Equipment Inc.; Claimant: Deputy Minister of Revenue of Quebec; Adverse Claimant: Gordon M. Selig
Court
Federal Court
Jurisdiction
Canada
Judgment Date
31 May 2004
Procedural Posture
Garnishment Motion Under Excise Tax Act / Interim Garnishment/motion for Priority of Claim Under Article 2651 C.c.q.
Outcome
Motion dismissed with costs.
Legal Topics
Garnishment, Priority of Claims, Professional Fees, Civil Code of Québec Article 2651, Execution and Realization of Patrimony
Source Language
English
Civil Procedure Quebec Civil Law Tax Law Security and Enforcement Garnishment Priority of Claims Professional Fees Civil Code of Québec Article 2651 +1 more

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Parties

9049-4907 Québec Inc.

Debtor

Metromec Equipment Inc.

Garnishee

Deputy Minister of Revenue of Quebec

Claimant

Gordon M. Selig

Adverse Claimant

Procedural Posture

Garnishment Motion Under Excise Tax Act / Interim Garnishment/motion for Priority of Claim Under Article 2651 C.c.q.

Legal Issues

  1. 1 Whether counsel for the judgment debtor has a prior claim on settlement funds under article 2651(1) C.C.Q.
  2. 2 Whether fees incurred at the debtor's instruction qualify as expenses incurred in the common interest of creditors

Ratio Decidendi

The claim for priority failed because the professional fees were incurred at the debtor's instruction for the debtor's individual interest and not in the common interest of creditors, so they do not fall within the priority in article 2651(1) C.C.Q.; therefore the motion is dismissed.

Court Disposition

Motion dismissed with costs.

Orders

  • The motion by counsel for the judgment debtor is dismissed with costs.
  • If counsel is not entitled to priority, the interim garnishment order in favour of the Deputy Minister of Revenue of Quebec will be made final by separate order.