EOS Canada Inc. v. Bennett

EOS Canada Inc. v. Bennett

Section 5(1) of the Small Claims Court Act precludes a corporate assignee who is not an original party to the contract from bringing a claim in Small Claims Court; EOS is an assignee and not an original party to the Mastercard agreement with Canadian Tire Bank, therefore the Small Claims Court lacks jurisdiction and the claim must be dismissed (with the claimant free to reinitiate in Supreme Court).

Citation
2019 NSSM 32
Parties
Claimant: EOS Canada Inc.; Defendant: Lilla K. Bennett
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
15 July 2019
Procedural Posture
Small Claims Court Quick Judgment Application / Adjudication Decision
Outcome
Claim dismissed for lack of jurisdiction under s.5(1) of the Small Claims Court Act
Legal Topics
Assignment of Debt, Jurisdictional Bar Under Statute, Statutory Interpretation, Dismissal for Lack of Jurisdiction
Source Language
English
Civil Debt Collection Procedure Statutory Jurisdiction Assignment of Debt Jurisdictional Bar Under Statute Statutory Interpretation Dismissal for Lack of Jurisdiction

Case Brief

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Parties

EOS Canada Inc.

Claimant

Lilla K. Bennett

Defendant

Procedural Posture

Small Claims Court Quick Judgment Application / Adjudication Decision

Legal Issues

  1. 1 Whether the Small Claims Court has jurisdiction to adjudicate a claim brought by an assignee of a debt
  2. 2 Whether section 5(1) of the Small Claims Court Act precludes a corporate assignee from succeeding in a small claims action when it is not an original party to the contract
  3. 3 What is the appropriate remedy if the court lacks jurisdiction

Ratio Decidendi

Section 5(1) of the Small Claims Court Act precludes a corporate assignee who is not an original party to the contract from bringing a claim in Small Claims Court; EOS is an assignee and not an original party to the Mastercard agreement with Canadian Tire Bank, therefore the Small Claims Court lacks jurisdiction and the claim must be dismissed (with the claimant free to reinitiate in Supreme Court).

Court Disposition

Claim dismissed for lack of jurisdiction under s.5(1) of the Small Claims Court Act

Orders

  • Claim dismissed.
  • Claimant may reinitiate the claim in the Supreme Court if it chooses.