Battle River Dodge Chrysler (1994) Ltd. v. Vulcan Chev Olds Geo Ltd., (1999) 242 A.R. 119 (QB)

• Judge: Clark, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: February 26, 1999
• Citations: (1999), 242 A.R. 119 (QB)

Battle River Dodge v. Vulcan Chev Olds (1999), 242 A.R. 119 (QB)

MLB headnote and full text

Temp. Cite: [1999] A.R. TBEd. MR.087

Battle River Dodge Chrysler (1994) Ltd. (applicant) v. Vulcan Chev Olds Geo Ltd. (respondent)

(Action No. 9812-000711)

Indexed As: Battle River Dodge Chrysler (1994) Ltd. v. Vulcan Chev Olds Geo Ltd.

Alberta Court of Queen's Bench

Judicial District of Wetaskiwin

Clark, J.

February 26, 1999.

Summary:

Archambault purchased a truck from Vulcan and paid by cheque. Two days later he traded the truck with Battle for a car and $7,232.63. The cheque was dishonoured. Battle brought an application to determine ownership of the truck.

The Alberta Court of Queen's Bench held that Battle was the proper owner of the truck.

Sale of Goods - Topic 3121

Transfer or loss of title to third parties - Sale to a bona fide purchaser without notice - General - Archambault purchased a truck from Vulcan and paid by cheque - Two days later he traded the truck with Battle for a car and $7,232.63 - The cheque was dishonoured - Battle brought an application to determine the ownership of the truck - Vulcan argued that Battle should have contacted it and Battle's fail­ure to do so fixed Battle with construc­tive notice of Archambault's title defect - Battle argued that constructive notice did not apply under the Sale of Goods Act - The Alberta Court of Queen's Bench con­cluded that wilful blindness was the only basis upon which Battle could be deemed to have notice of the title defect and it had not been wilfully blind - Battle acquired good title to the truck in good faith and without notice of a defect in title.

Cases Noticed:

Barclays Bank plc. v. O'Brien et al., [1993] 4 All E.R. 417; 160 N.R. 214 (H.L.), refd to. [para. 13].

General Motors Acceptance Corp. of Canada Ltd. v. Mahfouz and Canadian Imperial Bank of Commerce et al. (1984), 67 A.R. 145; 14 D.L.R.(4th) 437 (C.A.), refd to. [para. 24].

Allis-Chalmers Credit Corp. of Canada Ltd. v. Leon's Manufacturing Co. and Cormack Developments Ltd., [1983] 4 W.W.R. 230; 45 A.R. 175 (C.A.), refd to. [para. 26].

Worcester Works Finance Ltd. v. Cooden Engineering Co., [1971] 3 All E.R. 708 (C.A.), refd to. [para. 27].

Manchester Trust v. Furness, [1895] 2 Q.B. 539 (C.A.), refd to. [para. 28].

Standard Bank London Ltd. v. Bank of Tokyo Ltd., [1995] N.L.O.R. No. 2430 (Q.B.D.), refd to. [para. 30].

Rainthorpe v. Rice, [1993] O.J. No. 2582 (Gen. Div.), refd to. [para. 31].

Lloyd's Bank of Canada v. Lumberton Mills Ltd., [1989] 2 W.W.R. 360 (B.C.C.A.), dist. [para. 32].

Royal Bank v. Lions Gate Fisheries Ltd., [1991] 3 W.W.R. 40 (B.C.C.A.), dist. [para. 32].

Ensign Pacific Lease Ltd. v. Lumar Auto Sales et al., [1998] B.C.T.C. Uned. 235 (S.C.), dist. [para. 33].

Statutes Noticed:

Sale of Goods Act, R.S.A. 1980, c. S-2, sect. 25 [para. 12].

Authors and Works Noticed:

Atiyah, Sale of Goods (7th Ed. 1985), p. 298 [para. 25].

Benjamin, Sale of Goods (4th Ed. 1992), p. 317 [para. 25].

Chitty on Contracts (27th Ed. 1994), vol. 2, p. 1193 [para. 25].

Halsbury's Laws of England (4th Ed.) vol. 41, para. 74, note 3 [para. 27].

Snell, Principles of Equity (29th Ed. 1990), pp. 51 [para. 20]; 52 [para. 21].

Counsel:

William A. Andreassen (Andreassen Olson Borth), for the applicant;

Anthony J. Hilling, for the respondent.

This application was heard before Clark, J., of the Alberta Court of Queen's Bench, Judicial District of Wetaskiwin, who delivered the following judgment on February 26, 1999.