Edmonton Airport Hotel Co. Ltd. v. Credit Foncier Franco-Canadien

Edmonton Airport Hotel Co. Ltd. v. Credit Foncier Franco-Canadien

Collateral chattel security does not contravene s.34(17) and may be enforced separately; a valid borrowing existed giving rise to a debt and the guarantor was liable despite limitations on remedies against the mortgagor; the notary certificate, read with the guarantee and mortgage, satisfied statutory requirements, therefore the guarantee was enforceable.

Citation
[1965] SCR 441
Parties
Appellant/defendant: Edmonton Airport Hotel Co. Ltd.; Appellant/defendant (guarantor): Jake Superstein; Respondent/plaintiff: Credit Foncier Franco-Canadien; Respondent/defendant: Economy Plumbing Ltd.; Respondent/defendant: Ideal Paving and Construction Co. Alberta Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 April 1965
Procedural Posture
Mortgage Foreclosure and Guarantee Enforcement / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta
Outcome
Appeal dismissed with costs.
Legal Topics
Priorities and Hypothecs, Chattel Mortgage, Guarantee, Judicature Act S.34(17), Guarantees Acknowledgment Act S.4
Source Language
English
Property Law Mortgage Law Contract Law Civil Procedure Priorities and Hypothecs Chattel Mortgage Guarantee Judicature Act S.34(17) +1 more

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Parties

Edmonton Airport Hotel Co. Ltd.

Appellant/defendant

Jake Superstein

Appellant/defendant (guarantor)

Credit Foncier Franco-Canadien

Respondent/plaintiff

Economy Plumbing Ltd.

Respondent/defendant

Ideal Paving and Construction Co. Alberta Ltd.

Respondent/defendant

Procedural Posture

Mortgage Foreclosure and Guarantee Enforcement / Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Alberta

Legal Issues

  1. 1 Whether a collateral chattel mortgage securing the same loan as a land mortgage is unenforceable under s.34(17) of The Judicature Act
  2. 2 Whether a guarantor is liable where remedies against the principal mortgagor are limited by s.34(17)
  3. 3 Whether the notary certificate under the Guarantees Acknowledgment Act s.4 was sufficient though it named the company rather than the guarantor

Ratio Decidendi

Collateral chattel security does not contravene s.34(17) and may be enforced separately; a valid borrowing existed giving rise to a debt and the guarantor was liable despite limitations on remedies against the mortgagor; the notary certificate, read with the guarantee and mortgage, satisfied statutory requirements, therefore the guarantee was enforceable.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.