Chrysler Credit Canada Ltd. v. Commissioner of the Northwest Territories, Arctic Cabs Ltd. and Bourque, (1979) 25 A.R. 319 (NWTSC)

• Judge: Tallis, J.
• Court: Supreme Court of Northwest Territories (Canada)
• Case Date: December 19, 1979
• Jurisdiction: Northwest Territories
• Citations: (1979), 25 A.R. 319 (NWTSC)

Chrysler Credit v. NWT Commr. (1979), 25 A.R. 319 (NWTSC)

MLB headnote and full text

Chrysler Credit Canada Ltd. v. The Commissioner of the Northwest Territories, Arctic Cabs Ltd. and Bourque

(No. S.C. 4123)

Indexed As: Chrysler Credit Canada Ltd. v. Commissioner of the Northwest Territories, Arctic Cabs Ltd. and Bourque

Northwest Territories Supreme Court

Tallis, J.

December 19, 1979.

Summary:

This case arose out of a plaintiff's action for a declaration for a determination of its rights under a conditional sale agreement. The plaintiff sold a motor vehicle to a purchaser under a conditional sale agreement, but did not register the contract. The purchaser subsequently sold the vehicle to Arctic Cabs Ltd., which had actual knowledge of the existence of the conditional sale agreement. Arctic Cabs subsequently mortgaged the vehicle to the Commissioner of the Northwest Territories, who registered the chattel mortgage. However, one digit was omitted from the 13 digit serial number in the mortgage. The plaintiff brought an action against the Commissioner for a declaration that its claim under the conditional sale agreement took priority over the Commissioner's chattel mortgage. The plaintiff also brought an action against Arctic Cabs for a declaration with regard to its rights under the conditional sale agreement, claiming the balance under the agreement.

The Northwest Territories Supreme Court dismissed the action against the Commission, holding that the chattel mortgage was not invalid because of the omission of one of the digits from the serial number of the vehicle. The court allowed the action against Arctic Cabs and held that in purchasing a vehicle with knowledge of the conditional sale agreement, Arctic Cabs converted the plaintiff's interest in the vehicle.

Chattel Mortgages - Topic 2285

Registration and filing - Contents of bill or mortgage - Serial number of motor vehicle - Bills of Sale Ordinance, R.O.N.W.T. 1974, c. B-1 - A chattel mortgage on an automobile contained a 13 digit serial number, of which one digit was missing - The Northwest Territories Supreme Court held that the omission did not render the description of the motor vehicle insufficient for purposes of the requirements of s. 5 of the Bills of Sale Ordinance - See paragraphs 5 to 13.

Torts - Topic 3093

Trespass - Trespass to goods - Conversion - What constitutes conversion - The plaintiff sold a motor vehicle to a purchaser under a conditional sales contract, which the plaintiff failed to register - The purchaser subsequently sold the vehicle to a third party, who had actual knowledge of the existence of the conditional sales contract - The third party subsequently mortgaged the vehicle - The Northwest Territories Supreme Court held that the third party could not assert a claim in priority to that of the plaintiff, and by its actions the third party had converted the plaintiff's interest in the vehicle - See paragraph 20.

Cases Noticed:

Industrial Acceptance Corporation Limited v. Whiting, 15 W.W.R.(N.S.) 690, refd to. [para. 7].

Bank of Montreal v. Jack Gardiner Used Cars Ltd. (1978), 73 D.L.R.(3d) 146; 24 N.S.R.(2d) 352; 35 A.P.R. 352, appld. [para. 10].

Carlson v. Avco Financial Services Ltd., [1974] 3 W.W.R. 80, refd to. [para. 9].

Re Hutchinson, [1977] 4 W.W.R. 547, refd to. [para. 9].

Active Petroleum Products Ltd. v. Duggan and Laurentide Financial Corporation Ltd., 65 W.W.R.(N.S.) 120, refd to. [para. 9].

Inland Kenworth Sales (Skeena) Ltd. v. Eidsveick, 28 C.B.R. 215, refd to. [para. 13].

Touchie v. Carragher; Touchie v. Summerside Waterfront Development Corporation Ltd., 28 C.B.R. 168, refd to. [para. 13].

Bank of Nova Scotia v. Monsanto Canada Limited, [1976] W.W.D. 55, refd to. [para. 13].

Re Robert Sist Development Corporation Ltd., 80 D.L.R.(3d) 445, refd to. [para. 13].

Re Polano v. Bank of Nova Scotia, 23 O.R.(2d) 324, refd to. [para. 13].

Statutes Noticed:

Bills of Sale Ordinance, R.O.N.W.T. 1974, c. B-1, sect. 5, sect. 23(1), sect. 23(2), sect. 24 [para. 6]; sect. 12 [para. 15].

Conditional Sales Ordinance, R.O.N.W.T. 1974, c. C-9, sect. 3(1), sect. 33(3) [para. 14].

Bills of Sale Act, R.S.N.S. 1967, c. 23, sect. 4 [para. 10].

Counsel:

R.A. Philion, for the plaintiff Chrysler Credit Canada Limited;

J. Vertes, for the defendant Commissioner of the Northwest Territories;

E. Brogden, for the defendant Arctic Cabs Ltd.

This case was heard before TALLIS, J., of the Northwest Territories Supreme Court, at Yellowknife, Northwest Territories on December 3, 1979.

The judgment of TALLIS, J., was delivered on December 19, 1979.