Affinity International Inc. v. Alliance International Inc.,

• Jurisdiction: Manitoba
• Judge: Twaddle, Helper and Kroft, JJ.A.
• Citation: (1995), 100 Man.R.(2d) 223 (CA)
• Court: Court of Appeal (Manitoba)
• Date: 28 March 1995

Affinity Intl. v. Alliance Intl. (1995), 100 Man.R.(2d) 223 (CA);

    91 W.A.C. 223

MLB headnote and full text

Affinity International Inc. (plaintiff/appellant) v. Alliance International Corp. (defendant) and The Royal Bank of Canada (intervenor/respondent)

(Suit No. AI 94-30-02027)

Indexed As: Affinity International Inc. v. Alliance International Inc.

Manitoba Court of Appeal

Twaddle, Helper and Kroft, JJ.A.

March 28, 1995.

Summary:

The plaintiff sued the defendant for breach of contract. Certain monies owing to the defendant were paid into court pursuant to a prejudgment garnishing order. A bank, as a secured creditor, intervened, claiming prior­ity to the money being held in court.

The Manitoba Court of Queen's Bench, in a decision reported at 96 Man.R.(2d) 200, held that the bank had priority. The plaintiff appealed.

The Manitoba Court of Appeal dismissed the appeal.

Personal Property - Topic 6167

Security interests - Floating charge - Perfection of - In April 1990, a bank registered a general security agreement (GSA) securing current and future indebt­edness of the defendant - In November 1990 the plaintiff and defendant entered contractual relations - In 1992, the plain­tiff sued the defendant, alleging breach of contract, and in 1993 obtained a prejudg­ment garnishing order - Monies (repre­senting a book debt owing to the defen­dant) were paid into court - In February 1994, the bank demanded payment and claimed priority to the money held in court - The trial judge held that the bank had priority - The class description of collat­eral in the GSA was sufficient to identify and include the book debt - Further, the floating charge contained in the GSA had attached and was perfected when the book debt came into existence - The Manitoba Court of Appeal affirmed the decision.

Personal Property - Topic 6168

Security interests - Floating charge - Priority - [See Personal Property - Topic 6167 ].

Personal Property - Topic 6205

Security interests - Priorities - Garnish­ment - [See Personal Property - Topic 6167 ].

Counsel:

S.D. Alsip, for the appellant;

J.M.J. Dow, for the respondent.

This appeal was heard on March 28, 1995, before Twaddle, Helper and Kroft, JJ.A., of the Manitoba Court of Appeal. On March 28, 1995, Twaddle, J.A., delivered the fol­lowing judgment orally for the court.