Alberta (Treasury Branches) v. McKinnon, 2013 ABQB 371

• Judge: Veit, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: June 25, 2013
• Citations: 2013 ABQB 371;(2013), 570 A.R. 222 (QB)

Alta. v. McKinnon (2013), 570 A.R. 222 (QB)

MLB headnote and full text

Temp. Cite: [2013] A.R. TBEd. SE.092

Alberta Treasury Branches (plaintiff) v. Bradley McKinnon (defendant)

(1204 00590; 2013 ABQB 371)

Indexed As: Alberta (Treasury Branches) v. McKinnon

Alberta Court of Queen's Bench

Judicial District of Grande Prairie

Veit, J.

September 13, 2013.

Summary:

On July 30, 2012, past the two year limitation for commencing such actions, Alberta Treasury Branches (ATB) sued McKinnon for the amount outstanding on a credit card. ATB relied on the Cardholder Agreement which purported to replace the statutory limitation with a contractual limitation period of six years. The Limitations Act stated that any such contractual provision had to be signed by the person against whom the expanded limitation was used. Although McKinnon did not sign the Cardholder Agreement, ATB argued that the Cardholder Agreement was incorporated by reference into the Credit Agreement which was signed by McKinnon. Invoking a limitations defence, McKinnon applied for summary dismissal of ATB's claim. ATB cross-applied for summary judgment against McKinnon for the full amount of approximately $30,000.

A Master of the Alberta Court of Queen's Bench, in a decision not reported in this series of reports, denied McKinnon's application for summary judgment. The Master granted ATB's application for summary judgment in part, concluding that the only triable issue was whether McKinnon was responsible for charges incurred after July 29, 2008 (the date McKinnon said he instructed ATB to close the account). McKinnon appealed the decision of the Master which allowed the ATB to substitute a contractual limitation for the statutory one, even though the document extending the limitation period was not signed by McKinnon. ATB cross-appealed the decision to limit the summary judgment to the debt owed by McKinnon as of July 29, 2008.

The Alberta Court of Queen's Bench allowed McKinnon's appeal, set aside the Master's granting of summary judgment and remitted the matter for trial. It was not necessary to consider ATB's cross-appeal.

Contracts - Topic 2164

Terms - Incorporation by reference - Incorporation of terms of other agreements - [See Limitation of Actions - Topic 9606 ].

Courts - Topic 1127

Masters - Appeals from - Standard of review - [See Limitation of Actions - Topic 9606 ].

Limitation of Actions - Topic 9606

Enlargement of time period - General - By agreement of parties - On July 30, 2012, past the two year limitation for commencing such actions, Alberta Treasury Branches (ATB) sued McKinnon for the amount outstanding on a credit card - ATB relied on the Cardholder Agreement which purported to replace the statutory limitation with a contractual limitation period of six years - The Limitations Act stated that any such contractual provision had to be signed by the person against whom the expanded limitation was used - Although McKinnon did not sign the Cardholder Agreement, ATB argued that the Cardholder Agreement was incorporated by reference into the Credit Agreement which was signed by McKinnon - Invoking a limitations defence, McKinnon applied for summary dismissal of ATB's claim - A Master denied the application - McKinnon appealed the Master's decision which allowed the ATB to substitute a contractual limitation for the statutory one, even though the document extending the limitation period was not signed by McKinnon - The Alberta Court of Queen's Bench allowed McKinnon's appeal, set aside the Master's decision and remitted the matter for trial - The law allowed unsigned documents to be incorporated by reference into signed contracts - However, it was not possible from the Master's decision to discern the strain of contract law on which he relied to come to his conclusion and whether he took the remedial nature of the Limitations Act into account in reaching that conclusion - A reviewing court could not be assured of either the legal or the factual basis for the Master's decision - There was no discernible assessment by the Master concerning the need for agreement between the parties (consensus ad idem) on the extension of the limitation period - The court was unable to conclude that the Master's decision denying McKinnon summary judgment was correct.

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Statutes Noticed:

Limitations Act, R.S.A. 2000, c. L-12, sect. 2 [para. 29]; sect. 7 [para. 30]; sect. 9 [para. 31].

Authors and Works Noticed:

Alberta Law Reform Institute, Limitations Act: Standardizing Limitation Periods for Actions on Insurance Contracts (2003), generally [para. 14].

Cuming, Ronald C.C. and Wood, Roderick, J., Alberta Personal Property Security Act Handbook (4th. Ed. 1998), generally [para. 13].

Feldthusen, Bruce, Economic Negligence: The Recovery of Pure Economic Loss (5th Ed.), generally [para. 13].

Fridman, Gerald Henry Louis, The Law of Contract in Canada (6th Ed. 2011), generally [para. 13].

Hall, Geoff R., Canadian Contractual Interpretation Law (2nd Ed. 2012), generally [para. 13].

Halsbury's Laws of England (4th Ed. 1980), vol. 9 [para. 13].

Waddams, Stephen M., The Law of Contracts (5th Ed. 2005), generally [para. 13].

Counsel:

Glenn A. Taylor (Taylor & Company), for Bradley McKinnon;

Steven A. Rohatyn (Parlee McLaws LLP), for the plaintiff.

This appeal and cross-appeal were heard on June 25, 2013, before Veit, J., of the Alberta Court of Queen's Bench, Judicial District of Grande Prairie, who delivered the following memorandum of decision on September 13, 2013.