Bourgault's Estate v. Deputy Minister of Revenue of Quebec

• Jurisdiction: Federal Jurisdiction (Canada)
• Court: Supreme Court (Canada)
• Judge: Martland, Ritchie, Pigeon, Beetz, Estey, Pratte and McIntyre, JJ.
• Citation: (1979), 30 N.R. 24 (SCC),33 CBR (ns) 301,1979 CanLII 2 (SCC),105 DLR (3d) 270,30 NR 24,[1980] 1 SCR 35
• Date: 20 October 1979

Bourgault Estate v. MNR (1979), 30 N.R. 24 (SCC)

MLB headnote and full text

Bourgault's Estate v. Deputy Minister of Revenue of Quebec

Indexed As: Bourgault's Estate v. Deputy Minister of Revenue of Quebec

Supreme Court of Canada

Martland, Ritchie, Pigeon, Beetz, Estey, Pratte and McIntyre, JJ.

October 20, 1979.

Summary:

This case arose out of a motion by a trustee in bankruptcy for the cancellation of a privilege registered against the bankrupt's estate by the Province of Quebec under the Retail Sales Tax Act, R.S.Q. 1964, c. 71, s. 30 of which purported to make debts for sales tax a privileged debt. The trustee claimed that the debt to the province for sales tax was merely a preferred debt under section 107(1)(j) of the Bankruptcy Act. The Quebec Superior Court dismissed the motion and held that the Province was a secured creditor. The Quebec Court of Appeal in a judgment reported [1978] R.D.F.Q. 153, allowed the trustee's appeal and held that the Province was merely a preferred creditor under section 107(1)(j). The Province appealed.

The Supreme Court of Canada dismissed the appeal and affirmed that the Province was a preferred creditor and not a secured creditor. See paragraphs 1 to 42.

Estey, J., dissenting, was of the opinion the Province was a secured creditor. See paragraphs 43 to 70.

Bankruptcy - Topic 3928

Secured creditors - What constitute - Crown's claim for taxes collected by bankrupt - The Province of Quebec claimed to be a secured creditor of a bankrupt, because of its previously registered privilege against the bankrupt's property under the Retail Sales Tax, R.S.Q. 1964, c. 71 - The Supreme Court of Canada held that, although the Province fell within the definition of "secured creditor" in section 2 of the Bankruptcy Act, it was not a secured creditor, but was a preferred creditor under section 107(1)(j), in which Parliament intended claims of Canada or the provinces to be preferred debts "notwithstanding any statutory preference to the contrary" - See paragraphs 1 to 42.

Bankruptcy - Topic 4486

Preferred creditors - Claims by Crown - Provincial sales tax - Bankruptcy Act, R.S.C. 1970, c. B-3, s. 107(1)(j) - The Province of Quebec claimed to be a secured creditor of a bankrupt, because of its previously registered privilege against the bankrupt's property under the Retail Sales Tax Act, R.S.Q. 1964, c. 71 - The Supreme Court of Canada held that, although the Province fell within the definition of "secured creditor" in section 2 of the Bankruptcy Act, it was not a secured creditor, but was a preferred creditor under section 107(1)(j), in which Parliament intended claims of Canada or the provinces to be preferred debts "notwithstanding any statutory preference to the contrary" - See paragraphs 1 to 42.

Statutes - Topic 1803

Interpretation - Bilingual statutes - Interpretation of both versions - The Supreme Court of Canada discussed the problem of interpreting a bilingual statute, in this case the Bankruptcy Act, in which terms expressed in one language are not always rendered in the other language in the same way, partly because of the different legal concepts of each language - See paragraphs 6 to 20 and 27 to 41.

Cases Noticed:

Supertest Petroleum v. Jacques Cartier Automobile Inc. and Shink, [1963] Que. Q.B. 336, refd to. [paras. 3, 24].

Re St. Lawrence Investment and Trust Co., Sun Life Assurance v. Brown (1937), 63 Que. Q.B. 546, refd to. [paras. 5, 26].

R. v. Popovic (1975), 7 N.R. 231; [1976] 2 S.C.R. 308, consd. [paras. 9, 30].

Riordon Co. v. Danforth Co., [1923] S.C.R. 319, dist. [paras. 10, 31].

Re Ferme St-Antoine Limitee, Cite de Montreal v. Duclos (1941), 70 Que. Q.B. 124, dist. [paras. 11, 32].

Re Midland Book Centre Ltd. and City of Winnipeg (1976), 66 D.L.R.(3d) 169, refd to. [paras. 11, 32].

Produits de Caoutchouc Marquis Inc. v. Trottier, [1962] S.C.R. 676, refd to. [paras. 11, 32].

In re Clemenshaw (1962), 4 B.C.R. 238, not folld. [paras. 13, 34].

In re Silver Brothers Ltd., [1932] A.C. 514, refd to. [paras. 14, 35].

Larue v. Royal Bank of Canada, [1926] S.C.R. 218, aff. [1928] A.C. 187, appld. [paras. 16, 37].

Board of Industrial Relations v. Avco Financial Services Realty Ltd. (1979), 28 N.R. 140, consd. [paras. 18, 39].

Supertest Petroleum Corporation Ltd. v. Jacques-Cartier Automobile Inc., [1963] B.R. 336, refd to. [paras. 51, 65].

Re Price, Ex parte. Tinning (1931), 26 Tas. L.R. 158, refd to. [paras. 52, 66].

Dinning v. Workmen's Compensation Board, [1932] 1 D.L.R. 373, refd to. [paras. 52, 66].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1970, c. B-3, sect. 2, sect. 107(1)(j) [paras. 2, 23]; sect. 125 [paras. 53, 67].

Quebec Civil Code, art. 1989 [paras. 4, 25, 44, 58]; art. 2121 [paras. 44, 58].

Retail Sales Tax Act, R.S.Q. 1964, c. 71, sect. 30 [paras. 1, 22].

Authors and Works Noticed:

Jowitt's Dictionary of English Law [paras. 52, 66].

Counsel:

Yves Ouellette, Andre St-Jean and Serge Gloutnay, for the appellant;

Guy Roy, for the respondent.

This case was heard on March 13, 1979, at Ottawa, Ontario, before MARTLAND, RITCHIE, PIGEON, BEETZ, ESTEY, PRATTE and McINTYRE, JJ., of the Supreme Court of Canada.

On October 20, 1979, the judgment of the Supreme Court of Canada was delivered and the following opinions were filed:

PIGEON, J. - See paragraphs 1 to 21 (English language version) and paragraphs 22 to 42 (French language version);

ESTEY, J., dissenting - See paragraphs 43 to 56 (English language version) and paragraphs 57 to 70 (French language version).

MARTLAND, RITCHIE, BEETZ, PRATTE and McINTYRE, JJ., concurred with PIGEON, J.