Larue v. Attorney General for Quebec / Larue v. Royal Bank of Canada

Larue v. Attorney General for Quebec / Larue v. Royal Bank of Canada

Majority: s.11(10) of the Bankruptcy Act, read with s.51, expressly gives from registration a receiving order or authorized assignment precedence over all certificates of judgment and judgments operating as hypothecs for all purposes including realization and distribution; the statutory language encompasses Quebec judicial hypothecs created by registration under art.2121 C.C., and the provisions are within the federal Parliament's bankruptcy and insolvency power under s.91(21).

Citation
[1926] SCR 218
Parties
Debtor: P. E. Emile Bélanger; Trustees/appellants: Larue, Trudel and Picher; Claimant/respondent: The Royal Bank of Canada; Intervening Respondent: Attorney General for Quebec
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
2 February 1926
Procedural Posture
Appeal to Supreme Court of Canada From Court of King’s Bench, Quebec (bankruptcy/constitutional) / Final Judgment on Appeal
Outcome
Appeal allowed; judgment of courts below reversed; trustees' disallowance of the bank's claim restored
Legal Topics
Priority of Claims, Judicial Hypothec (judicial Mortgage), Registration of Judgments, Federal Legislative Competence, Distribution of Bankrupt Estate
Source Language
English
Constitutional Law Bankruptcy and Insolvency Civil Law Property Law Priority of Claims Judicial Hypothec (judicial Mortgage) Registration of Judgments Federal Legislative Competence +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 11 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

P. E. Emile Bélanger

Debtor

Larue, Trudel and Picher

Trustees/appellants

The Royal Bank of Canada

Claimant/respondent

Attorney General for Quebec

Intervening Respondent

Procedural Posture

Appeal to Supreme Court of Canada From Court of King’s Bench, Quebec (bankruptcy/constitutional) / Final Judgment on Appeal

Legal Issues

  1. 1 Whether a receiving order or authorized assignment in bankruptcy under s.11(1) and (10) of the Bankruptcy Act takes precedence over registered judgments operating as hypothecs under Civil Code art.2121 C.C.
  2. 2 Whether the statutory phrases "certificates of judgment" and "judgments operating as hypothecs" include Quebec judicial hypothecs created by registration under art.2121 C.C.
  3. 3 Whether Parliament had constitutional authority under s.91(21) BNA Act to enact s.11(1) and (10) to displace provincial hypothecary rights

Ratio Decidendi

Majority: s.11(10) of the Bankruptcy Act, read with s.51, expressly gives from registration a receiving order or authorized assignment precedence over all certificates of judgment and judgments operating as hypothecs for all purposes including realization and distribution; the statutory language encompasses Quebec judicial hypothecs created by registration under art.2121 C.C., and the provisions are within the federal Parliament's bankruptcy and insolvency power under s.91(21).

Court Disposition

Appeal allowed; judgment of courts below reversed; trustees' disallowance of the bank's claim restored

Orders

  • Appeal allowed with costs
  • Disallowance of The Royal Bank of Canada’s claim as to privilege/hypothec on immovables restored (trustees' decision reinstated)