Canada Case Law

Burkhard (Re)

Court

Supreme Court of Nova Scotia

The debtor is entitled to a $6,500 exemption under PPSA s.59(3)(b) because her vehicle (approximately $5,300) was owned free and clear and required for employment in an area lacking reasonable public transportation; the October 1, 2019 amendment to the Judicature Act increasing the general chattel exemption is not retroactive to her January 28, 2019 bankruptcy; valuation must reflect realizable value without an extra arbitrary discount; the Trustee must recalculate amounts payable and refund any overpayment.

Source excerpt

• Vehicle exemption
• Work exemption
• Tools of trade
• Secured creditor rights
• Ppsa s.59(3)(b)
• Retroactivity

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Okanagan Court Bailiffs Inc. v. TD Waterhouse Canada Inc.

Court

Supreme Court of British Columbia

The court held that RRSPs were not specifically pledged under either general security agreement, so they were not deregistered and remained exempt from seizure.

• Priority of secured creditors
• Rrsp seizure and exemption
• Automatic deregistration under s.146 ita
• Statutory interpretation
• Maintenance enforcement
• Seizure procedure

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Duckett v. McKinnon

Court

British Columbia Court of Appeal

The Court of Appeal dismissed an application to extend time to file an appeal record, finding no error in principle, no factual misapprehension, and no merit in the appeal.

• Extension of time
• Appeal record
• Summary trial
• Security interest
• Ppsa substance test
• Merits of appeal

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Long and McQuade Ltd. v. Torres

Court

Supreme Court of British Columbia

La Cour rejette la demande visant à qualifier la dette de fraude et conversion en vertu du par. 178(1)d LFI; aucune qualité fiduciaire n’est établie.

• Fraud
• Conversion
• Misappropriation
• Defalcation
• Fiduciary duty
• Priority of security interest

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Perimeter Transportation Ltd. (Re)

Court

British Columbia Court of Appeal

The Court of Appeal held that PPSA s. 30(2) protected only the lessee’s leasehold rights and did not extinguish GE’s perfected security interest in the lessor’s reversionary interest.

• Ppsa s.30(2) effect on leases
• Ppsa s.20(b)(i) trustee priority over unperfected interests
• Perfection by registration
• Trustee's release/surrender of assets
• Lessee's rights vs lessor's reversionary interest
• Ppsa-30-2-lease

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Kuzilla (Re)

Court

Supreme Court of British Columbia

The court held that an unperfected PPSA security interest under a lease of more than one year was ineffective against the trustee in bankruptcy, so the secured claim was dismissed.

• Perfection
• Secured creditor
• Lease for term more than one year
• Registration
• Priority
• Bankruptcy

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2811472 Canada Inc. v. Royal Bank of Canada

Court

Court of Appeal for Ontario

The appellant failed to prove a PMSI because it could not show that the value it advanced went into creating the collateral; assignment agreements supported the lower court's view; consequently the appellant's collections amounted to realizing on security that ranked behind the respondent and were not permitted under the PPSA, so the appellant must repay the sums collected.

Source excerpt

• Purchase-money security interest (pmsi)
• Priority of security interests
• Security interest realization
• Repayment of collections
• Costs

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Stelco Inc. (Re)

Court

Court of Appeal for Ontario

The Court held that an assignment of the right to unearned insurance premiums is a transfer of an interest in or under the insurance policy and, in combination with notice under s.138 of the Insurance Act, is exempt from PPSA registration by operation of s.4(1)(c); the appeal was allowed and CAFO's interest was held exempt from registration.

Source excerpt

• Assignment of unearned premiums
• Security interest formation
• Ppsa registration exemption s.4(1)(c)
• Insurance act s.138
• Perfecting security interests
• Priority between secured creditors

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Inland Kenworth v. Laboucane

Court

Supreme Court of British Columbia

The court upheld a deficiency claim after repossession and sale of equipment, rejecting defenses based on vendor name, novation, notice, and voluntary foreclosure.

• Default judgment
• Novation
• Contract modification
• Commercially reasonable sale
• Notice of disposition
• Deficiency claim

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356533 B.C. Ltd.

356533 B.C. Ltd. (Bankruptcy of)

Court

Supreme Court of British Columbia

The court held that the settlement agreement and direction to pay absolutely assigned surplus court funds and a surplus retainer to Landmark, Wong and Foo, so the trustee had no claim.

• Assignment of choses in action
• Priority of trustee in bankruptcy
• Perfection under ppsa
• Construction liens
• Retainer and trust funds
• Interpretation of settlement agreements

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