Alsask Farm & Ranch Supply Ltd. v. Texaco Canada Inc.

• Jurisdiction: Saskatchewan
• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Judge: Goldenberg, J.
• Citation: (1989), 73 Sask.R. 154 (QB)
• Date: 07 February 1989

Alsask Farm & Ranch v. Texaco Can. (1989), 73 Sask.R. 154 (QB)

MLB headnote and full text

Alsask Farm & Ranch Supply Ltd. (plaintiff) v. Texaco Canada Inc. (defendant)

(No. 2959 A.D. 1986)

Indexed As: Alsask Farm & Ranch Supply Ltd. v. Texaco Canada Inc.

Saskatchewan Court of Queen's Bench

Judicial Centre of Saskatoon

Goldenberg, J.

February 7, 1989.

Summary:

The plaintiff company was an undischarged bankrupt. The trustee had been discharged. The defendant requested a determination by the court of the question of whether the plaintiff had the standing necessary to commence the action. The dispute arose out of contractual dealings prior to the assignment in bankruptcy.

The Saskatchewan Court of Queen's Bench held that the plaintiff lacked the capacity to bring the action.

Bankruptcy - Topic 9244

Discharge of trustee - Effect of discharge - Respecting property of bankrupt - The Saskatchewan Court of Queen's Bench noted that the assets remaining in a bankrupt's estate did not automatically revert to the bankrupt upon the discharge of the trustee - See paragraph 6 - Therefore, before a bankrupt could maintain an action on his own in regard to a matter which arose before the assignment in bankruptcy, the trustee must first transfer the right to the action from the estate back to the bankrupt - See paragraph 10.

Bankruptcy - Topic 9248

Discharge of debtor - Effect of discharge - Effect of discharge on standing of bankrupt (capacity to sue) - An undischarged bankrupt wanted to bring an action concerning contractual dealings prior to the assignment in bankruptcy - The trustee in bankruptcy had already been discharged - The Saskatchewan Court of Queen's Bench held that an undischarged bankrupt lacked the capacity necessary to maintain an action - The court opined that it would be necessary for the bankrupt to obtain a discharge before it could maintain an action - See paragraph 10.

Practice - Topic 224

Persons who can sue and be sued - Individuals and corporations - Status or standing - Bankrupts - [See Bankruptcy - Topic 9248 above].

Cases Noticed:

Zemlak v. Deloitte, Haskins & Sells Limited, 66 C.B.R.(N.S.) 1, dist. [para. 4].

Black & White Sales Consultants Ltd. v. CBS Records Canada Ltd. et al. (1981), 118 D.L.R.(3d) 726, refd to. [para. 5].

Canadian Imperial Bank of Commerce v. Woodgrove (1982), 43 C.B.R.(N.S.) 239, refd to. [para. 5].

Ens v. Wiebe (1984), 33 Sask.R. 50, refd to. [para. 6].

Valade et al. v. Andresen et al., 24 C.B.R. 308 (Quebec Superior Court), refd to. [para. 7].

Thompson v. Coulombe et al. (1985), 54 C.B.R.(N.S.) 254, refd to. [para. 8].

Better Built Furniture v. Kerlen Factors Ltd., [1977] Que. S.C. 480, affd. [para. 9].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1970, c. B-3, sect. 22 [para. 10]; sect. 50(5) [para. 4].

Rules of Court (Sask.), Queen's Bench Rules, rule 188 [para. 1].

Counsel:

A.J. Gagne, for the applicant/defendant;

G.J. Ludwig, for the respondent/plaintiff.

This application was heard by Goldenberg, J., of the Saskatchewan Court of Queen's Bench, Judicial Centre of Saskatoon, who delivered the following judgment on February 7, 1989.