Jacobs v. Laumaillet

Jacobs v. Laumaillet

The court held the garage keeper's lien lapsed because no seizure or court extension occurred within statutory periods under the Repairers Lien Act; PPSA priority rules (s.35) govern between competing perfected security interests so s.59(2) does not elevate a junior dispossessing secured party's seizure expenses over a prior perfected security interest; the Numbered Company's earlier registration therefore has priority over Jacobs; the Numbered Company may add and recover legal fees to protect its security to the extent authorized by its GSA and s.56(2).

Citation
2010 BCSC 1229
Parties
Petitioner: Yvonne Jacobs; Respondent / Debtor: Albert Laumaillet; Respondent / Secured Party: 400338 B.C. Ltd.; Respondent / Garage Keeper: Walter Stipic
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
14 July 2010
Procedural Posture
Petition and Notice of Motion Concerning Priorities Under the Personal Property Security Act and Repairers Lien Act / In Chambers Oral Reasons and Judgment on Application for Determination of Priorities After Interlocutory Sale Approval
Legal Topics
Priority of Security Interests, Garage Keeper's Lien, Seizure and Sale of Collateral, Consumer Goods Protections (ppsa S.58), Contractual Entitlement to Legal Costs
Source Language
English
Personal Property Security Law Repairers Lien Act Contract Law Civil Procedure Priority of Security Interests Garage Keeper's Lien Seizure and Sale of Collateral Consumer Goods Protections (ppsa S.58) +1 more

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Parties

Yvonne Jacobs

Petitioner

Albert Laumaillet

Respondent / Debtor

400338 B.C. Ltd.

Respondent / Secured Party

Walter Stipic

Respondent / Garage Keeper

Procedural Posture

Petition and Notice of Motion Concerning Priorities Under the Personal Property Security Act and Repairers Lien Act / In Chambers Oral Reasons and Judgment on Application for Determination of Priorities After Interlocutory Sale Approval

Legal Issues

  1. 1 Whether garage keeper's lien survives and has priority
  2. 2 Whether junior secured party's seizure expenses take priority over senior perfected security interest
  3. 3 Whether Numbered Company can rely on its security interest where debtor paid at least 2/3 of obligation (PPSA s.58(3))

Ratio Decidendi

The court held the garage keeper's lien lapsed because no seizure or court extension occurred within statutory periods under the Repairers Lien Act; PPSA priority rules (s.35) govern between competing perfected security interests so s.59(2) does not elevate a junior dispossessing secured party's seizure expenses over a prior perfected security interest; the Numbered Company's earlier registration therefore has priority over Jacobs; the Numbered Company may add and recover legal fees to protect its security to the extent authorized by its GSA and s.56(2).