Corp. Steckmar/Steckmar Corp., Re

Corp. Steckmar/Steckmar Corp., Re

The Court held it had jurisdiction under the Federal Court Rules and federal precedent to determine garnishee liability and apply provincial law incidentally; the judgment creditor met art.1627 conditions and Rule 453 permitted summary determination; given the 25-year history, minimal repayments and excessive delay, the Court could and should fix the term under art.1512 C.C.Q. and order final garnishment to satisfy the tax certificate. Accordingly final garnishment was granted to attach amounts due to the judgment debtor up to $126,666.39 plus interest and costs.

Citation
2004 FC 581
Parties
Judgment Creditor: Her Majesty the Queen; Judgment Debtor: La Corporation Steckmar/Steckmar Corporation; Garnishee: Steckmar National Realty and Investment Corporation
Court
Federal Court
Jurisdiction
Canada
Judgment Date
19 April 2004
Procedural Posture
Tax Enforcement Garnishment Under the Income Tax Act / Motion for Final Garnishment / Decision on Motion
Outcome
Final garnishment order granted in favour of Her Majesty the Queen to attach amounts due to the judgment debtor and to satisfy the tax certificate
Legal Topics
Garnishment, Oblique Remedy, Setting Contractual Term (art.1512 C.c.q.), Exercise of Debtor's Rights (art.1627 C.c.q.), Jurisdiction to Apply Provincial Law Incidentally, Enforcement of Tax Certificate
Source Language
English
Tax Civil Procedure Quebec Civil Law Commercial Law Garnishment Oblique Remedy Setting Contractual Term (art.1512 C.c.q.) Exercise of Debtor's Rights (art.1627 C.c.q.) +2 more

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Parties

Her Majesty the Queen

Judgment Creditor

La Corporation Steckmar/Steckmar Corporation

Judgment Debtor

Steckmar National Realty and Investment Corporation

Garnishee

Procedural Posture

Tax Enforcement Garnishment Under the Income Tax Act / Motion for Final Garnishment / Decision on Motion

Legal Issues

  1. 1 Whether Federal Court may determine, in garnishment proceedings, that a loan payable 'when the debtor has the means' is immediately payable or may set a term under art.1512 C.C.Q.
  2. 2 Whether a judgment creditor may exercise the debtor's rights under art.1627 C.C.Q. in garnishment to seek setting of term and assignment of debt
  3. 3 Whether Rule 453 summary procedure is an appropriate forum to determine garnishee liability and incidental provincial law issues

Ratio Decidendi

The Court held it had jurisdiction under the Federal Court Rules and federal precedent to determine garnishee liability and apply provincial law incidentally; the judgment creditor met art.1627 conditions and Rule 453 permitted summary determination; given the 25-year history, minimal repayments and excessive delay, the Court could and should fix the term under art.1512 C.C.Q. and order final garnishment to satisfy the tax certificate. Accordingly final garnishment was granted to attach amounts due to the judgment debtor up to $126,666.39 plus interest and costs.

Court Disposition

Final garnishment order granted in favour of Her Majesty the Queen to attach amounts due to the judgment debtor and to satisfy the tax certificate

Orders

  • Final garnishment, assignment and transfer to Her Majesty the Queen in right of Canada of any amounts due or to become due to the judgment debtor by the garnishee up to the amount of $126,666.39
  • Interest compounded daily on $126,666.39 from October 26, 1999 to date of payment as prescribed under the Income Tax Act