Perimeter Transportation Ltd. (Re)

Perimeter Transportation Ltd. (Re)

GE held a valid, perfected registered security interest in the Prevost buses under the GE/Century 2008 ELSA registered against Century prior to bankruptcy; s.30(2) does not defeat a validly perfected security interest registered against the lessor, so GE has priority and the trustee is not entitled to the buses or...

Source-derived case information.

Citation
2009 BCSC 1458
Parties
Trustee in Bankruptcy: The Bowra Group Inc.; Debtor / Bankrupt: Perimeter Transportation Ltd.; Secured Creditor: GE Canada Equipment Financing G.P.; Lessor / Respondent: Century McMynn Leasing Partnership; Interested Party: HSBC Bank Canada
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
27 October 2009
Procedural Posture
Bankruptcy and Insolvency / Application for Directions Under S.34 BIA Decided on Affidavits (one Day Hearing)
Outcome
Application dismissed in favour of GE; GE has priority to the Prevost buses; Trustee not entitled to return or value of the buses or to Century's lease interests.
Legal Topics
Priority of Security Interests, Perfection/registration, Leases and Lessor Rights, Section 30 PPSA, Section 20 PPSA, Trustee Powers, Unjust Enrichment
Source Language
english
Bankruptcy and Insolvency Personal Property Security Commercial Law Priority of Security Interests Perfection/registration Leases and Lessor Rights Section 30 PPSA Section 20 PPSA +2 more

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Parties

The Bowra Group Inc.

Trustee in Bankruptcy

Perimeter Transportation Ltd.

Debtor / Bankrupt

GE Canada Equipment Financing G.P.

Secured Creditor

Century McMynn Leasing Partnership

Lessor / Respondent

HSBC Bank Canada

Interested Party

Procedural Posture

Bankruptcy and Insolvency / Application for Directions Under S.34 BIA Decided on Affidavits (one Day Hearing)

Legal Issues

  1. 1 Whether GE has priority to the Prevost buses over the trustee
  2. 2 Whether Century has priority to the Prevost buses over the trustee
  3. 3 What legal effect, if any, the trustee's release of the buses to Century had on GE's rights

Ratio Decidendi

GE held a valid, perfected registered security interest in the Prevost buses under the GE/Century 2008 ELSA registered against Century prior to bankruptcy; s.30(2) does not defeat a validly perfected security interest registered against the lessor, so GE has priority and the trustee is not entitled to the buses or their value or to Century's lease interests.

Court Disposition

Application dismissed in favour of GE; GE has priority to the Prevost buses; Trustee not entitled to return or value of the buses or to Century's lease interests.

Orders

  • GE Canada Equipment Financing G.P. has priority to the three Prevost buses; The Bowra Group Inc., as trustee, is not entitled to possession, return or value of the Prevost buses nor to Century's interest in the Cantrail or PCL leases.
  • If parties cannot agree on costs they shall set a costs hearing before the trial judge through the registry.