Wilburn Properties Inc. v. Silver Peak Resources Ltd.

Wilburn Properties Inc. v. Silver Peak Resources Ltd.

The court held there was no real triable issue that the US$231,000 was advanced on Silver Peak's account and is secured; the US$175,000 of October 1996 is not covered by the June 23,1997 security documents; Golden Arch's guarantee is limited to its current Williston interest and is dismissed; most security documents...

Source-derived case information.

Citation
2001 BCSC 1084
Parties
Petitioner: Wilburn Properties Inc.; Respondent: Silver Peak Resources Ltd.; Respondent: Roulette Resources Ltd.; Respondent: Her Majesty the Queen in Right of the Province of British Columbia represented by the Minister of Finance and Corporate Relations; Respondent: P H Locke; Respondent: A I Conway; Respondent: Trustee of JM Agace (1973) UK A&M Trust; Respondent: Glencraig Holdings Limited; Respondent: Duncan R. McKay; Respondent: Northmark Mechanical Systems Inc.; Respondent: Jill Pelletier; Respondent: Richard J. Watson; Respondent: Golden Arch Resources Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
25 July 2001
Procedural Posture
Petition for Foreclosure and Realization of Security Under Personal Property Security Act / In Chambers Application Under Rule 50; Interlocutory Determinations and Referrals
Outcome
Partial relief to petitioner: Golden Arch guarantee dismissed; security documents otherwise largely enforceable; US$231,000 held to be a debt of Silver Peak; enforceability of Richard Watson's unlimited personal guarantee referred to trial; accounting and amounts referred to Registrar; interest fixed at prime+1.5%...
Legal Topics
Foreclosure, Guarantee Enforceability, Past Consideration, Fraudulent Preference, PPSA Application and Exclusions, Priority of Security, Interest Determination, Accounting and Enforcement
Source Language
english
Secured Transactions Contract Law Property Law Insolvency and Bankruptcy Civil Procedure Foreclosure Guarantee Enforceability Past Consideration +5 more

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Parties

Wilburn Properties Inc.

Petitioner

Silver Peak Resources Ltd.

Respondent

Roulette Resources Ltd.

Respondent

Her Majesty the Queen in Right of the Province of British Columbia represented by the Minister of Finance and Corporate Relations

Respondent

P H Locke

Respondent

A I Conway

Respondent

Trustee of JM Agace (1973) UK A&M Trust

Respondent

Glencraig Holdings Limited

Respondent

Duncan R. McKay

Respondent

Northmark Mechanical Systems Inc.

Respondent

Jill Pelletier

Respondent

Richard J. Watson

Respondent

Golden Arch Resources Ltd.

Respondent

Procedural Posture

Petition for Foreclosure and Realization of Security Under Personal Property Security Act / In Chambers Application Under Rule 50; Interlocutory Determinations and Referrals

Legal Issues

  1. 1 Is the US$175,000 loan of October 1996 covered by the June 23, 1997 GSA?
  2. 2 Is the Golden Arch guarantee valid and enforceable?
  3. 3 Was the US$231,000 advanced on June 20, 1997 advanced on behalf of Silver Peak and therefore secured by the security documents?

Ratio Decidendi

The court held there was no real triable issue that the US$231,000 was advanced on Silver Peak's account and is secured; the US$175,000 of October 1996 is not covered by the June 23,1997 security documents; Golden Arch's guarantee is limited to its current Williston interest and is dismissed; most security documents were supported by sufficient consideration except the enforceability of Watson's unlimited personal guarantee could not be resolved on the materials and must be referred to trial; interest fixed at prime (6%) plus 1.5% from April 30, 1998; accounting and amount inquiries referred to the Registrar for detailed determination; allegations of fraudulent preference and PPSA s.4(d)...

Court Disposition

Partial relief to petitioner: Golden Arch guarantee dismissed; security documents otherwise largely enforceable; US$231,000 held to be a debt of Silver Peak; enforceability of Richard Watson's unlimited personal guarantee referred to trial; accounting and amounts referred to Registrar; interest fixed at prime+1.5%...

Orders

  • Dismiss claim under Golden Arch Resources Ltd. guarantee
  • Refer enforceability of Richard J. Watson's personal guarantee to the trial list pursuant to Rule 52(11)(d)