London Life Insurance Company (Re)

London Life Insurance Company (Re)

Garnishment under Rule 449(1)(a)(i) and the ITA (s.224(1)) properly allowed the respondent to demand and obtain the cash surrender value of the debtor's life insurance policies without a prior physical seizure of the policies; the prothonotary's orders were not in error and are affirmed.

Citation
2013 FC 93
Parties
Moving Party Garnishee: London Life Insurance Company; Respondent Judgment Creditor: Her Majesty the Queen of Canada; Judgment Debtor: Projexia Conseils Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
30 January 2013
Procedural Posture
Appeal From Prothonotary's Garnishment Order Under the Federal Courts Rules and Enforcement of an Income Tax Act Certificate / Final Judgment on Appeal (decision Affirming Prothonotary)
Outcome
Appeal dismissed; prothonotary's garnishment orders of August 15 and August 24, 2012, affirmed
Legal Topics
Garnishment, Surrender Value of Life Insurance, Seizability of Assets, Standing, Oblique Remedy, Federal Courts Rules S.449
Source Language
English
Tax Law Civil Procedure Insurance Law Enforcement of Judgments Bankruptcy Law Garnishment Surrender Value of Life Insurance Seizability of Assets +3 more

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Parties

London Life Insurance Company

Moving Party Garnishee

Her Majesty the Queen of Canada

Respondent Judgment Creditor

Projexia Conseils Inc.

Judgment Debtor

Procedural Posture

Appeal From Prothonotary's Garnishment Order Under the Federal Courts Rules and Enforcement of an Income Tax Act Certificate / Final Judgment on Appeal (decision Affirming Prothonotary)

Legal Issues

  1. 1 Whether creditor must physically seize insurance policy before exercising right to surrender value (per Malenfant)
  2. 2 Whether Federal Courts Rules subparagraph 449(1)(a)(i) (garnishment) may be used to obtain surrender value of life insurance policies
  3. 3 Whether cancelling policies via garnishment and associated practical consequences required a different or more exacting enforcement procedure under an ITA certificate

Ratio Decidendi

Garnishment under Rule 449(1)(a)(i) and the ITA (s.224(1)) properly allowed the respondent to demand and obtain the cash surrender value of the debtor's life insurance policies without a prior physical seizure of the policies; the prothonotary's orders were not in error and are affirmed.

Court Disposition

Appeal dismissed; prothonotary's garnishment orders of August 15 and August 24, 2012, affirmed

Orders

  • This appeal is dismissed.
  • Prothonotary Richard Morneau’s August 15, 2012 interim order and August 24, 2012 final order of garnishment are confirmed.