Caroma Enterprises Ltd. v. Workers' Compensation Board, Minister of National Revenue and Canadian Imperial Bank of Commerce, (1979) 23 A.R. 541 (QB)

• Judge: MacDonald, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: December 12, 1979
• Citations: (1979), 23 A.R. 541 (QB)

Caroma Ent. Ltd. v. WCB (1979), 23 A.R. 541 (QB)

MLB headnote and full text

Caroma Enterprises Ltd. v. Workers' Compensation Board, Minister of National Revenue and Canadian Imperial Bank of Commerce

(BKY 4540)

Indexed As: Caroma Enterprises Ltd. v. Workers' Compensation Board, Minister of National Revenue and Canadian Imperial Bank of Commerce

Alberta Court of Queen's Bench

Judicial District of Calgary

MacDonald, J.

December 12, 1979.

Summary:

This headnote contains no summary.

Bankruptcy - Topic 3928

Creditors - Secured creditor - What constitutes - Crown claim for taxes collected by bankrupt - The Alberta Court of Queen's Bench held that the Minister of National Revenue under s. 227(4), 227(5) of the Income Tax Act is not entitled to priority for employees' income tax withheld by an employer, where the employer fails to keep the taxes withheld separate and apart from his own monies - See paragraphs 38 to 46.

Bankruptcy - Topic 4296

Creditors - Secured creditors - Assignment of book debts - Validity of security - Attachment - The Alberta Court of Queen's Bench held that an assignment of book debts taken by a bank did not attach to book debts collected prior to the debtor's bankruptcy, where the assignment was a floating charge and had not crystallized or settled at the time of the bankruptcy - See paragraphs 9 to 26.

Choses in Action - Topic 1010

Assignment of book debts - Interpretation - The Alberta Court of Queen's Bench held that the intention of the participants in an assignment must be governed by and confined to the language of the assignment and must be collected from the instrument itself and not from conduct that would be inadmissible as an aid to construction - See paragraphs 9 to 10.

Choses in Action - Topic 1082

Assignment of book debts - Floating charge - What constitutes - The Alberta Court of Queen's Bench discussed and defined the nature of a floating charge and held that an assignment of book debts was a floating charge, where the assignor could continue to deal with its book debts until default - See paragraphs 11 to 20.

Choses in Action - Topic 1084

Assignment of book debts - Floating charge - Fixing or crystallizing of charge - The Alberta Court of Queen's Bench discussed the requirements of a floating charge becoming fixed or crystallized - See paragraphs 21 to 26.

Cases Noticed:

Re Suburban Industries Ltd. (1971), 15 C.B.R. 235, appld. [para. 9].

Canadian Imperial Bank of Commerce v. Campbell et al. (1975), 4 N.R. 76; [1976] 1 S.C.R. 341, refd to. [para. 9].

Canadian Imperial Bank of Commerce v. Smith's Estate (1975), 4 N.R. 76; [1976] 1 S.C.R. 341, refd to. [para. 9].

Canadian Imperial Bank of Commerce v. Sitarenios et al. (1976), 23 C.B.R. 6, appld. [para. 9].

Great Lakes Petroleum v. Border Cities Oil Ltd., [1934] 2 D.L.R. 743, appld. [para. 9].

Evans v. Rival Granite Quarries, [1910] 2 K.B. 979, appld. [para. 17].

Montreal Trust Co. v. The King, [1924] 1 D.L.R. 1030, appld. [para. 18].

Yorkshire Woolcombers' Assn. Ltd. v. Yorkshire Woolcombers' Assn. Ltd., [1903] 2 Ch. 284, refd to. [para. 19].

Workers' Compensation Board v. Provincial Treasurer of Alberta (1967), 59 W.W.R.(N.S.) 298, appld. [para. 32].

Workman's Compensation Board of Alberta v. Davis (1970), 73 W.W.R.(N.S.) 495, not folld. [para. 35].

Government Stocks v. Manila Bay, [1897] A.C. 81, dist. [para. 35].

Dauphin Plains Credit Union Limited v. Xyloid Industries Ltd. et al., [1979] 2 W.W.R. 515, not folld. [para. 42].

Re Deslauriers Const. Products Ltd., [1970] 3 O.R. 599, not folld. [para. 42].

Gatsby Enterprises (1978), 30 C.B.R. (N.S.) 1, folld. [para. 43].

Toronto-Dominion Bank v. Associated Decorators et al., 23 A.R. 583, folld. [para. 43].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1970, c. B-3, sect. 107(1)(h) [para. 37].

Canada Pension Act, R.S.C. 1970, c. C-5, sect. 24(4) [para. 40].

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 227(4), sect. 227(5) [para. 38].

Unemployment Insurance Act, S.C. 197071-72, c. 48, sect. 71(3) [para. 41].

Workers' Compensation Act, S.A. 1973, c. 87, sect. 85, sect. 87(1) [para. 27]; sect. 87(10), sect. 87(11), sect. 87(12) [para. 29].

Authors and Works Noticed:

Kerr on Receivers (14th Ed.), p. 158 [para. 16].

Williams, Canadian Law of Landlord and Tenant (4th Ed.), p. 460 [para. 23].

Counsel:

T.D. Hetherington, for the Trustee in Bankruptcy;

Clarence Johnson, for the Canadian Imperial Bank of Commerce;

R.C. Pittman, for Workers' Compensation Board;

Margaret E.T. Clare, for Revenue Canada.

This case was heard at Calgary, Alberta, before MacDONALD, J., of the Alberta Court of Queen's Bench, Judicial District of Calgary, who delivered the following judgment on December 12, 1979: