Gingras v. General Motors Products of Canada Ltd.

Gingras v. General Motors Products of Canada Ltd.

Majority: Art. 1040 C.C. does not apply to the trustee's remedy under s.64 of the Bankruptcy Act because the one-year prescription in Art.1040 was limited to Paulian remedies in the Civil Code and was never intended to extend to distinct federal bankruptcy remedies; therefore the trustee's petition is not time-barred by Art.1040 and the exception to dismiss must be rejected.

Citation
[1976] 1 SCR 426
Parties
Appellant (trustee in Bankruptcy): Paul Gingras; Respondent (creditor/company): General Motors Products of Canada Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
27 November 1974
Procedural Posture
Bankruptcy and Insolvency / Appeal to Supreme Court of Canada From Court of Queen's Bench (appeal Side), Province of Quebec
Outcome
Appeal allowed; judgments of the Court of Appeal and Superior Court reversed; dissent by de Grandpré J.
Legal Topics
Preferential Payments, Paulian Action, Prescription (limitation), Bankruptcy Act S.64, Interpretation Act S.37(4)
Source Language
English
Bankruptcy and Insolvency Civil Law Prescription/limitations Constitutional Division of Powers Statutory Interpretation Preferential Payments Paulian Action Prescription (limitation) Bankruptcy Act S.64 +1 more

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Parties

Paul Gingras

Appellant (trustee in Bankruptcy)

General Motors Products of Canada Ltd.

Respondent (creditor/company)

Procedural Posture

Bankruptcy and Insolvency / Appeal to Supreme Court of Canada From Court of Queen's Bench (appeal Side), Province of Quebec

Legal Issues

  1. 1 Whether Art. 1040 of the Quebec Civil Code applies to and bars a trustee's remedy under s.64 of the federal Bankruptcy Act
  2. 2 Whether provincial prescription rules can limit a federal statutory remedy where the federal statute is silent on prescription
  3. 3 Effect of historical repeal of pre-Confederation insolvency provisions (Art.1037) on applicability of Art.1040

Ratio Decidendi

Majority: Art. 1040 C.C. does not apply to the trustee's remedy under s.64 of the Bankruptcy Act because the one-year prescription in Art.1040 was limited to Paulian remedies in the Civil Code and was never intended to extend to distinct federal bankruptcy remedies; therefore the trustee's petition is not time-barred by Art.1040 and the exception to dismiss must be rejected.

Court Disposition

Appeal allowed; judgments of the Court of Appeal and Superior Court reversed; dissent by de Grandpré J.

Orders

  • Appeal allowed
  • Judgments of the Court of Appeal and of the Superior Court (bankruptcy side) reversed