Agriculture Financial Services Corp. v. Redmond, (1999) 237 A.R. 152 (CA)

• Judge: Bracco, Russell and Hunt, JJ.A.
• Court: Court of Appeal (Alberta)
• Case Date: January 25, 1999
• Citations: (1999), 237 A.R. 152 (CA)

Agriculture Financial v. Redmond (1999), 237 A.R. 152 (CA);

    197 W.A.C. 152

MLB headnote and full text

Temp. Cite: [1999] A.R. TBEd. JN.043

Agriculture Financial Services Corporation (appellant/plaintiff) v. Rodney Brian Redmond (respondent/defendant)

(9703-0057-AC)

Indexed As: Agriculture Financial Services Corp. v. Redmond

Alberta Court of Appeal

Bracco, Russell and Hunt, JJ.A.

June 8, 1999.

Summary:

The Agriculture Financial Services Cor­poration (the plaintiff) brought a foreclosure action against the defendant. By a Master's order, the land was sold to the plaintiff for market value. The plaintiff also obtained deficiency judgment. The defendant success­fully appealed the deficiency judgment. The plaintiff applied for leave to appeal. At issue was whether the plaintiff, a Crown agent, was bound by s. 41 of the Law of Property Act (which limited mortgage liability to recovery of the land) in light of the statutory Crown immunity provision in s. 14 of the Interpretation Act. The plaintiff sought re­consideration of three Court of Appeal de­cisions (Alberta Mortgage and Housing Corporation v. Ciereszko, Farm Credit Cor­poration v. Holowach and Royal Bank of Canada v. Black and White Developments Ltd.).

The Alberta Court of Appeal, in a decision reported at 216 A.R. 321; 175 W.A.C. 321, granted leave to appeal.

The Alberta Court of Appeal dismissed the appeal, holding that s. 41(1) was binding on a Crown agent and, accordingly, the plaintiff could not sue for deficiency judgment.

Crown - Topic 410

Statutes affecting the Crown - General principles - Where Crown accepts benefits - Section 41(1)(a) of the Alberta Law of Property Act limited mortgage liability to recovery of the land and pro­hibited an action on the covenant - Sec­tion 14 of the Alberta Interpretation Act provided for Crown immunity against enactments - Agriculture Financial Ser­vices Corporation was a provincial Crown agent - The Alberta Court of Appeal held that s. 41(1) was binding on non provincial Crown agents and, accordingly, Agriculture Financial Services Corporation, as a mort­gagee, could not sue for deficiency judg­ment - There was a nexus between the benefits of registering a mortgage under the Alberta Land Titles Act and the burden imposed on a mort­gagee by s. 41(1) - These elements were sufficiently related such that it must have been intended that the benefit would be conditional upon compliance with the restriction - See paragraphs to 1 to 90.

Crown - Topic 2885

Crown immunity - Exceptions - Bene­fit/burden or waiver exception - [See Crown - Topic 410 ].

Crown - Topic 2885

Crown immunity - Exceptions - Bene­fit/burden or waiver exception - The Alberta Court of Appeal stated that the Supreme Court of Canada decisions in Sparling v. Quebec and CNCP Telecom­munications v. Alberta Government Tele­phones and CRTC can be interpreted as subsuming the Crown as litigant exception to immunity in the benefit/burden excep­tion - See paragraphs 59 to 68.

Mortgages - Topic 5405

Mortgage actions - Action on the covenant - Prohibition against - [See Crown - Topic 410 ].

Mortgages - Topic 5555

Mortgage actions - Foreclosure and sale - Deficiency judgment - Bars - [See Crown - Topic 410 ].

Cases Noticed:

Alberta Mortgage and Housing Corp. v. Ciereszko (1987), 77 A.R. 81; 50 Alta. L.R.(2d) 289 (C.A.), consd. [para. 2].

Farm Credit Corp. v. Holowach (Bank­rupts) (1988), 86 A.R. 304; 59 Alta. L.R.(2d) 279 (C.A.), consd. [para. 2].

Farm Credit Corp. v. Enns (1990), 106 A.R. 215 (C.A.), refd to. [para. 2].

Royal Bank of Canada v. Black & White Developments Ltd. (1988), 88 A.R. 340 (C.A.), refd to. [para. 2].

Alberta Treasury Branches v. Hruschak (1991), 83 Alta. L.R.(2d) 30 (Q.B. Mas­ter), refd to. [para. 3].

Federal Business Development Bank v. Caskey (1992), 126 A.R. 254; 1 Alta. L.R.(3d) 58 (Q.B. Master), refd to. [para. 3].

Alberta Opportunity Co. v. Snatic et al. (1992), 130 A.R. 71 (Q.B. Master), refd to. [para. 3].

Alberta Agricultural Development Corp. v. Schamuhn et al. (1994), 152 A.R. 341 (Q.B.), refd to. [para. 3].

Alberta Government Telephones v. Cana­dian Radio-television and Telecom­munications Commission - see CNCP Telecommunications v. Alberta Govern­ment Telephones and CRTC.

CNCP Telecommunications v. Alberta Government Telephones and CRTC, [1989] 2 S.C.R. 225; 98 N.R. 161; [1989] 5 W.W.R. 385; 68 Alta. L.R.(2d) 1; 26 C.P.R.(3d) 289; 61 D.L.R.(4th) 193, refd to. [para. 4].

Canada Permanent Trust Co. v. King Art Development Ltd. et al., [1984] 4 W.W.R. 587; 54 A.R. 172 (C.A.), refd to. [para. 13].

R. v. Murray et al., [1967] S.C.R. 262; 59 W.W.R.(N.S.) 214; 60 D.L.R.(2d) 647, affing. [1965] 2 Ex. C.R. 663, refd to. [para. 21].

Gartland Steamship Co. v. R., [1960] S.C.R. 315; 22 D.L.R.(2d) 385; 80 C.R.T.C. 254, refd to. [para. 21].

Pacific Western Airlines Ltd., Re, [1978] 1 S.C.R. 62; 14 N.R. 21; 2 A.R. 539; 2 Alta. L.R.(2d) 72; 75 D.L.R.(3d) 257, refd to. [para. 22].

Alberta v. Canadian Transport Commission - see Pacific Western Airlines Ltd., Re.

R. v. Eldorado Nuclear Ltd.; R. v. Ura­nium Canada Ltd., [1983] 2 S.C.R. 551; 50 N.R. 120; 1 O.A.C. 243; 4 D.L.R.(4th) 193; 8 C.C.C.(3d) 449; 7 Admin L.R. 195; 77 C.P.R.(2d) 1, refd to. [para. 22].

Quebec v. Bank of Montreal, [1979] 1 S.C.R. 565; 25 N.R. 330, refd to. [para. 30].

Sparling v. Quebec, [1988] 2 S.C.R. 1015; 89 N.R. 120; 20 Q.A.C. 174, refd to. [para. 31].

Alberta v. Buys and Whitecourt Transport Ltd., [1989] 4 W.W.R. 636; 95 A.R. 248 (C.A.), refd to. [para. 38].

Canadian Commercial Bank (Liquidation), Re (1989), 105 A.R. 307 (C.A.), refd to. [para. 38].

Alberta Mortgage and Housing Corp. v. Klapstein - see Alberta Mortgage and Housing Corp. v. Tarpon Holdings Ltd. et al.

Alberta Mortgage and Housing Corp. v. Tarpon Holdings Ltd. et al., [1999] 1 W.W.R. 355; 228 A.R. 305; 188 W.A.C. 305 (C.A.), affing. [1997] 4 W.W.R. 147; 198 A.R. 231 (Q.B. Master), refd to. [para. 38].

Alberta Mortgage and Housing Corp. v. Keats and Senex Investments (1994), 149 A.R. 277; 63 W.A.C. 277; 19 Alta. L.R.(3d) 293 (C.A.), refd to. [para. 38].

Alberta Home Mortgage Corp. v. Castleridge Apartments Ltd. - see Alberta Mortgage and Housing Corp. v. Keats and Senex Investments.

Toronto Transportation Commission v. R., [1949] S.C.R. 510; [1949] 3 D.L.R. 161; 63 C.R.T.C. 289, refd to. [para. 44].

Alberta Government Telephones and Alberta (Attorney General) v. Canada Labour Relations Board and International Brotherhood of Electrical Workers, Local 348, [1989] 2 S.C.R. 318; 98 N.R. 264; [1989] 5 W.W.R. 455; 68 Alta. L.R.(2d) 71, refd to. [para. 49].

Syndicat professionel des ingénieurs d'Hydro-Québec v. Hydro-Québec et al., [1995] 3 F.C. 3; 184 N.R. 291 (F.C.A.), refd to. [para. 50].

Société des Alcools du Québec v. Steinberg Inc. (1993), 98 D.L.R.(4th) 212 (Que. C.A.), refd to. [para. 51].

Collège d'arts appliqués et de technologie La Cité collégiale v. Ottawa (City) et al. (1998), 107 O.A.C. 144; 157 D.L.R.(4th) 73 (C.A.), refd to. [para. 52].

Neary v. Nova Scotia (Attorney General) and MacDonald (1994), 137 N.S.R.(2d) 31; 391 A.P.R. 31; 119 D.L.R.(4th) 597 (C.A.), refd to. [para. 53].

Director of Soldier Settlement v. Snider Estate (1988), 88 A.R. 385 (C.A.), affd. [1991] 2 S.C.R. 481; 125 N.R. 321; 117 A.R. 81; 2 W.A.C. 81, refd to. [para. 61].

Rushton v. Industrial Development Bank, [1973] S.C.R. 552, refd to. [para. 69].

Santley v. Wilde, [1899] 2 Ch. 474 (C.A.), refd to. [para. 73].

Smith v. National Trust Co., [1912] 1 W.W.R. 1122 (S.C.C.), refd to. [para. 74].

Century 21 Real Estate Ltd. v. Reykdal Investments Ltd. (1979), 9 Alta. L.R.(2d) 209 (T.D.), refd to. [para. 77].

Fels v. Knowles (1907), 26 N.Z.L.R. 604, refd to. [para. 85].

Boulter-Waugh & Co. v. Union Bank of Canada, [1919] 1 W.W.R. 1046; 58 S.C.R. 385; 46 D.L.R. 41, refd to. [para. 85].

Waimiha Sawmilling Co. v. Waione Tim­ber Co., [1925] 3 W.W.R. 95; [1926] A.C. 101; 95 L.J.P.C. 5, refd to. [para. 85].

Statutes Noticed:

Interpretation Act, R.S.A. 1980, c. I-7, sect. 14 [para. 15].

Law of Property Act, R.S.A.. 1980, c. L-8, sect. 41(1)(a). [para. 12].

Authors and Works Noticed:

Alberta, Institute of Law Research and Reform, Mortgage Remedies in Alberta, Report No. 70 (1994), pp. 51 [para. 65]; 54 [para. 60].

Hogg, Peter W., Constitutional Law of Canada (1998 Looseleaf Ed.), vol. 1, pp. 10-17 [para. 66].

Hogg, Peter W., Liability of the Crown (2nd Ed. 1989), p. 231 [para. 66].

Hogg, Peter W., Liability of the Crown in Australia, New Zealand and the United Kingdom (1971), p. 183 [para. 34].

McNairn, Colin H., Governmental and Intergovernmental Immunity in Australia and Canada (1977), p. 10 [para. 34].

Price, Francis C.R. and Trussler, Marguer­ite J., Mortgage Actions in Alberta (1985), generally [para. 76].

Counsel:

F.C.R. Price, Q.C., for the appellant;

F.D. Cook and P.G. Kirman, for the re­spondent.

Bracco, Russell and Hunt, JJ.A., of the Alberta Court of Appeal, heard this appeal on January 25, 1999. Hunt, J.A., filed the following reasons for judgment for the Court on June 8, 1999.