Continental Bank of Canada v. Henry Mogensen Transport Ltd. and Allwest Petroleum & Industrial Supplies Ltd., (1984) 54 A.R. 27 (QBM)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: May 03, 1984
• Citations: (1984), 54 A.R. 27 (QBM)

Continental Bk. v. Mogensen Transport (1984), 54 A.R. 27 (QBM)

MLB headnote and full text

Continental Bank of Canada v. Henry Mogensen Transport Ltd. and Allwest Petroleum & Industrial Supplies Ltd.

(No. 8303-38081)

Indexed As: Continental Bank of Canada v. Henry Mogensen Transport Ltd. and Allwest Petroleum & Industrial Supplies Ltd.

Alberta Court of Queen's Bench

Funduk, Master in Chambers

May 3, 1984.

Summary:

The assignee of a conditional sales contract applied for a declaration that its claim to a conditionally purchased truck took priority over a garageman's lien for repairing the truck. The conditional sales contract stated that the conditional purchaser was to keep the truck "free and clear of all liens and encumbrances".

The Alberta Court of Queen's Bench held that the lien had priority where the garageman had no notice of the "no lien" provision, and ordered that money paid into court from the sale of the truck be paid to the garageman to satisfy the lien claim.

Liens - Topic 2051

Particular or possessory lien - Creation at common law - General - A Master of the Alberta Court of Queen's Bench stated that common law liens were either general liens or particular liens - A lien claimant under a general lien could retain possession of the property for any claims relating to that property and for claims unrelated to the property - A lien claimant under a particular lien could only retain possession for claims relating to the property retained - See paragraphs 89 to 92.

Liens - Topic 2051

Particular or possessory lien - Creation at common law - General - A Master of the Alberta Court of Queen's Bench stated that a common law lien arose where the law obliged certain classes of persons to receive goods (common carriers and innkeepers), where work was done on a chattel, and where a surety paid the debt of a principal debtor - See paragraph 95.

Liens - Topic 8301

Garagemen's lien - General - A Master of the Alberta Court of Queen's Bench analyzed the legislative history of the Possessory Liens Act and the Garagemen's Lien Act - See paragraphs 104 to 135.

Liens - Topic 8301

Garagemen's lien - General - Under the Garagemen's Lien Act, R.S.A. 1980, c. G-1, a lien claimant could have a garageman's lien and a possessory lien at the same time - A Master of the Alberta Court of Queen's Bench discussed the problems created in determining whether the lien claimants' rights and obligations were under the Garagemen's Lien Act or the Possessory Liens Act, with particular reference to s. 13 of the latter Act - See paragraphs 121 to 133.

Liens - Topic 8334

Garagemen's lien - Suppliers of parts - Filing of lien - General - Section 3(1)(c) of the Garagemen's Lien Act stated that a lien terminated 21 days after the accessories or parts for a vehicle were furnished - A Master of the Alberta Court of Queen's Bench stated that s. 3(1)(c) applied only to a supplier of accessories or parts who did not have possession of the vehicle and accordingly could not maintain a lien by retaining possession of the vehicle - See paragraphs 72 to 77.

Liens - Topic 9065

Priorities - Particular liens - Garagemen's lien - "No lien" clause - Effect of - A conditional purchaser had implied and express authority to have the conditionally purchased truck repaired, but was to keep the truck "free and clear of all encumbrances and liens" - A garageman repaired the truck without knowledge of the "no lien" clause - A Master of the Alberta Court of Queen's Bench held that the garageman's lien took priority over the claim of the conditional vendor, because the garageman had no knowledge of the "no lien" clause, there was no default under the conditional sales contract at the date of the repairs, and both the conditional vendor and purchaser benefited from the repairs - See paragraphs 10 to 62.

Cases Noticed:

Gurevitch v. Melchoir (1921), 29 B.C.R. 394 (C.A.), appld. [para. 11].

R. Angus (Alberta) Ltd. v. Alberta Tractor Parts Ltd., 44 D.L.R.(2d) 337 (Alta. C.A.), ref'd to. [para. 12].

Commercial Finance Corporation v. Stratford (1920), 47 O.L.R. 392 (H.C.), appld. [paras. 15-20, 48].

Sterling Securities Ltd. v. Hicks Motor Company Ltd., [1928] 2 W.W.R. 74 (Sask. C.A.), ref'd to. [para. 20].

Re Gollan and Edmonton Credit Company, [1938] 1 W.W.R. 670 (Alta. D.C.), ref'd to. [para. 21].

Albemarle Supply Company Ltd. v. Hind, [1928] 1 K.B. 307 (C.A.), appld. [paras. 21, 30-33, 36-39, 45-46].

Alliance Finance Company v. Simons, [1928] 3 W.W.R. 621 (B.C.C.A.), not folld. [paras. 21, 23-24].

J.H. Early Motor Company Ltd. v. Siekawitch, [1931] 3 W.W.R. 521 (Sask. C.A.), ref'd to. [para. 21].

Security Loan Company v. Hewlett (1951), 59 Man. R. 159 (C.A.), ref'd to. [para. 21].

Bowmaker Ltd. v. Wycombe Motors Ltd., [1946] 2 All E.R. 113 (K.B.), ref'd to. [paras. 21, 42-43].

General Securities Ltd. v. Bretts (Lillooet) Ltd., 5 D.L.R.(2d) 46 (B.C.S.C.), ref'd to. [para. 21].

Royal A. Vaillancourt Co. Ltd. v. Trans Canada Credit Corporation Ltd., [1963] 1 O.R. 411 (C.A.), ref'd to. [para. 21].

Green v. All Motors Ltd., [1917] 1 K.B. 625, dist. [paras. 25-29].

Frith v. Forbes, 45 E.R. 1242, ref'd to. [para. 41].

Bock v. Gorrisen, 45 E.R. 689, ref'd to. [para. 41].

Vernon Finance Ltd. v. Brandt, 22 D.L.R.(2d) 231 (B.C.S.C.), ref'd to. [para. 59].

Alberta Drilling & Developing Company Limited v. Lethbridge Iron Works Company Limited, [1947] 1 W.W.R. 983 (Alta. D.C.), ref'd to. [para. 134].

Statutes Noticed:

Garagemen's Lien Act, R.S.A. 1980, c. G-1, sect. 2 [para. 67]; sect. 3(1) [para. 72].

Possessory Liens Act, R.S.A. 1980, c. P-13, sect. 13 [para. 88].

Mechanics' Lien Act, S.A. 1906, c. 21, sect. 34 [para. 105].

Liens on Goods and Chattels, An Act Respecting, S.A. 1921, c. 10, sect. 1, sect. 8, sect. 9, sect. 12 [para. 106].

Garagemen's Lien Act, S.A. 1937, c. 77, sect. 2, sect. 3, sect. 4, sect. 9, sect. 10 [para. 109].

Garagemen's Lien Act, R.S.A. 1955, c. 128, sect. 4 [para. 115]; sect. 8, sect. 9 [para. 117].

Garagemen's Lien Act, S.A. 1960, c. 35, sect. 3, sect. 4, sect. 8, sect. 9 [para. 119].

Garagemen's Lien Act, S.A. 1976, c. 57, sect. 3, sect. 4 [para. 127].

Authors and Works Noticed:

Canadian Encyclopedic Digest (Ontario)(3rd Ed.), vol. 19, pp. 86-13 [para. 94]; 86-22, para. 34 [para. 34].

Canadian Encyclopedic Digest (Western), vol. 19, p. 86-25, para. 44 [para. 101].

Wallace, Mechanics Lien Law in Canada (3rd Ed.), p. 202 [para. 35].

Counsel:

M. McCabe, for the applicant;

N. St. Arnaud, for the respondent, Allwest Petroleum & Industrial Supplies Ltd.

This application was heard before Funduk, Master in Chambers, of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following judgment on May 3, 1984.