American Reserve Energy Corp. v. McDorman et al., (1999) 174 Nfld. & P.E.I.R. 217 (NFTD)

• Judge: Adams, J.
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Case Date: February 17, 1999
• Jurisdiction: Newfoundland and Labrador
• Citations: (1999), 174 Nfld. & P.E.I.R. 217 (NFTD)

Am. Reserve v. McDorman (1999), 174 Nfld. & P.E.I.R. 217 (NFTD);

    533 A.P.R. 217

MLB headnote and full text

Temp. Cite: [1999] Nfld. & P.E.I.R. TBEd. MR.025

American Reserve Energy Corporation (plaintiff) v. Wesley McDorman (first defendant) and Sandhurst Roxana Exploration Limited (second defendant) and Sandhurst Roxana Agency Limited (third defendant)

(1997 St. J. No. 1632)

Indexed As: American Reserve Energy Corp. v. McDorman et al.

Newfoundland Supreme Court

Trial Division

Adams, J.

March 3, 1999.

Summary:

AREC commenced an action, alleging that it was the beneficial owner of oil and gas exploration permits and that SREL had fraudulently transferred the permits to SRAL to defeat AREC's claim. A preservation order was issued. Shortly after the trial's conclusion, AREC learned that SRAL had transferred the permits to Newco two days prior to the application for the preservation order. The Minister had regis­tered the trans­fers after having appeared on the application for preservation. The Minis­ter had also approved Newco transferring some of the permits to another company. AREC applied for, inter alia, a preservation order (rule 22.02), a recovery order (rule 27) and orders requesting a re-vesting and preserva­tion of the permits in SRAL pending the final out­come of the proceedings.

The Newfoundland Supreme Court, Trial Division, allowed the application.

Practice - Topic 3377

Interim proceedings - Preservation of property - When order for preservation of property available - AREC commenced an action, alleging that it was the beneficial owner of oil and gas exploration permits and that SREL had fraudulently transferred the permits to SRAL to defeat AREC's claim - AREC obtained a preservation order - Shortly after the trial's conclusion, AREC learned that SRAL had transferred the permits to Newco two days prior to the application for preservation - The Minister had registered the transfers less than a week after having appeared on the appli­cation for preservation - The Minister had also approved Newco transferring some of the permits to another company - The Newfoundland Supreme Court, Trial Divi­sion, held that the circumstances were suspicious and granted AREC a preserva­tion order to ensure that it could effectual­ly deal with any judgment rendered (rule 22.02) - See paragraphs 13 to 24.

Practice - Topic 3492

Interim proceedings - Interim recovery of personal property - When available - AREC commenced an action, alleging that it was the beneficial owner of oil and gas exploration permits and that SREL had fraudulently transferred the permits to SRAL to defeat AREC's claim - AREC obtained a preservation order - Shortly after the trial's conclusion, AREC learned that SRAL had transferred the permits to Newco two days prior to the application for preservation - The Minister had regis­tered the transfers less than a week after having appeared on the application for preservation - The Minister had also approved Newco transferring some of the permits to another company - AREC sought, inter alia, a recovery order under rule 27.01 so that the permits could be re-vested in SRAL - AREC also sought an order dispensing with the bond require­ment under rule 27 - The Newfoundland Supreme Court, Trial Division, granted the orders - See paragraphs 25 to 29.

Practice - Topic 3555

Evidence - General principles - Leave to offer further evidence after case closed - AREC commenced an action, alleging that it was the beneficial owner of oil and gas exploration permits and that SREL had fraudulently transferred the permits to SRAL to defeat AREC's claim - AREC obtained a preservation order - Shortly after the trial's conclusion, AREC learned that SRAL had transferred the permits to Newco two days prior to the application for preservation - The Minister had regis­tered the transfers less than a week after having appeared on the application for preservation - The Minister had also approved Newco transferring some of the permits to another company - This infor­mation had been deliberately withheld from AREC - AREC asked that the trans­fer and relative documents be admitted as part of the record even though the case had con­cluded (rule 46.08) - The New­found­land Supreme Court, Trial Division, granted the order - See paragraphs 32 to 34.

Cases Noticed:

Abitibi-Price Inc. v. McKay (K.L.) Log­ging Ltd. and McKay (1989), 77 Nfld. & P.E.I.R. 239; 240 A.P.R. 239 (Nfld. T.D.), refd to. [para. 15].

Société pour l'administration du droit de reproduction mécanique des auteurs v. Trans World Record Corp., [1977] 2 F.C. 602; 17 N.R. 162 (F.C.A.), refd to. [para. 15].

Newfoundland and Labrador Housing Corp. v. Ennis (1987), 64 Nfld. & P.E.I.R. 22; 197 A.P.R. 22 (Nfld. T.D.), refd to. [para. 30].

Statutes Noticed:

Rules of Court (Nfld.), Supreme Court Rules, rule 22.02(1) [para. 13]; rule 27.01 [para. 25]; rule 46.08 [para. 32].

Authors and Works Noticed:

Newfoundland Law Society, Bar Admis­sions Course Materials, Practice and Procedure, 1999, pp. 22.10, 22.11 [para. 14].

Counsel:

Colm St. R. Seviour, for the plaintiff;

Brian Casey, for the first defendant.

Adams, J., of the Newfoundland Supreme Court, Trial Division, heard this application on February 17, 1999 and filed the following decision on March 3, 1999.