Canada v. Bezan Cattle Corporation

Canada v. Bezan Cattle Corporation

For purposes of SFSA s.31 the term 'farmer' means a mortgagor in the sense of a person who has granted a mortgage over farm land (or falls within the specific inclusions in the SFSA definition); it does not extend to persons who merely grant security in personal property (chattel mortgages). Because there was no evidence Bezan Cattle had granted a mortgage over farm land, SFSA s.31 did not apply and the Federal Court erred in dismissing the claim against the individual Bezans; summary judgment against the Bezans was properly entered on the record; the cross-appeal challenging summary judgment against Bezan Cattle was dismissed.

Citation
2023 FCA 95
Parties
Appellant (respondent by Cross Appeal): His Majesty the King in Right of Canada; Respondent (appellant by Cross Appeal): Bezan Cattle Corporation; Respondent (appellant by Cross Appeal): Barbara Bezan; Respondent (appellant by Cross Appeal): Layton Bezan
Court
Federal Court of Appeal
Jurisdiction
Canada
Judgment Date
9 May 2023
Procedural Posture
Civil Appeal From Summary Judgment (subrogation/recovery Under Ampa) / Appeal to Federal Court of Appeal Following Federal Court Summary Judgment Motion
Outcome
Appeal allowed in part: Federal Court judgment dismissing claim against Barbara and Layton Bezan set aside; summary judgment granted against Barbara and Layton Bezan. Cross-appeal by Bezan Cattle dismissed; summary judgment against Bezan Cattle upheld.
Legal Topics
Summary Judgment, Subrogation, Guarantee Formalities, Mortgage Vs Chattel Mortgage, Interpretation of 'mortgagor'/'farmer', Duress, Unconscionability, Acceptance by Conduct
Source Language
English
Statutory Interpretation Contract Law Civil Procedure Agricultural Law Security Interests Summary Judgment Subrogation Guarantee Formalities +5 more

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Parties

His Majesty the King in Right of Canada

Appellant (respondent by Cross Appeal)

Bezan Cattle Corporation

Respondent (appellant by Cross Appeal)

Barbara Bezan

Respondent (appellant by Cross Appeal)

Layton Bezan

Respondent (appellant by Cross Appeal)

Procedural Posture

Civil Appeal From Summary Judgment (subrogation/recovery Under Ampa) / Appeal to Federal Court of Appeal Following Federal Court Summary Judgment Motion

Legal Issues

  1. 1 Whether SFSA s.31 applies to the Joint and Several Guarantee executed by individual shareholders
  2. 2 Whether 'farmer'/'mortgagor' in SFSA s.31 includes a chattel mortgagor (grantor of security in personal property)
  3. 3 Whether the Federal Court erred in granting summary judgment against Bezan Cattle

Ratio Decidendi

For purposes of SFSA s.31 the term 'farmer' means a mortgagor in the sense of a person who has granted a mortgage over farm land (or falls within the specific inclusions in the SFSA definition); it does not extend to persons who merely grant security in personal property (chattel mortgages). Because there was no evidence Bezan Cattle had granted a mortgage over farm land, SFSA s.31 did not apply and the Federal Court erred in dismissing the claim against the individual Bezans; summary judgment against the Bezans was properly entered on the record; the cross-appeal challenging summary judgment against Bezan Cattle was dismissed.

Court Disposition

Appeal allowed in part: Federal Court judgment dismissing claim against Barbara and Layton Bezan set aside; summary judgment granted against Barbara and Layton Bezan. Cross-appeal by Bezan Cattle dismissed; summary judgment against Bezan Cattle upheld.

Orders

  • Set aside Federal Court order dismissing action against Barbara and Layton Bezan
  • Enter summary judgment against Barbara Bezan and Layton Bezan in favour of the Attorney General of Canada (Minister) consistent with Federal Courts Act s.53(1)(b)(i)