Donalda (Village) v. TD Bk., (1990) 111 A.R. 389 (QB)

• Judge: Marshall, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: November 20, 1990
• Jurisdiction: Alberta
• Citations: (1990), 111 A.R. 389 (QB)

Donalda (Village) v. TD Bk. (1990), 111 A.R. 389 (QB)

MLB headnote and full text

The Village of Donalda (applicant) v. The Toronto-Dominion Bank (respondent)

(Action #9003 20199)

Indexed As: Donalda (Village) v. Toronto-Dominion Bank

Alberta Court of Queen's Bench

Judicial District of Edmonton

Marshall, J.

November 20, 1990.

Summary:

A municipality claimed priority over a chattel mortgagee to a bankrupt's interest in a mobile home.

The Alberta Court of Queen's Bench held that the municipality had priority.

Bankruptcy - Topic 3654

Creditors - General - Priorities - Municipalities - A municipality claimed priority over a bankrupt's mobile home for unpaid property taxes - A chattel mortgagee claimed priority as a secured creditor - The Alberta Court of Queen's Bench held that the municipality had priority (1) as a preferential lienholder within the exceptions in s. 136(1)(e) of the Bankruptcy Act (see paragraphs 14 to 19) and (2) as a secured creditor with priority over the chattel mortgagee/secured creditor under s. 124(1) of the Municipal Taxation Act.

Bankruptcy - Topic 3924

Secured creditors - What constitutes a secured creditor - Statutory liens - General - The Alberta Court of Queen's Bench held that s. 124(1) of the Municipal Taxation Act gave a municipality a statutory lien for arrears of property taxes - The lien established the municipality as a secured creditor under the Bankruptcy Act - See paragraphs 20 to 22.

Cases Noticed:

Deloitte, Haskins and Sells Ltd. v. W.C.B. - see Jacs Jackets & Crests Ltd., Re; W.C.B. (Alta.) v. Deloitte, Haskins & Sells Ltd.

Jacs Jackets & Crests Ltd., Re; W.C.B.(Alta.) v. Deloitte, Haskins & Sells Ltd., [1985] 1 S.C.R. 785; [1985] 4 W.W.R. 481; 38 Alta. L.R.(2d) 169; 55 C.B.R.(N.S.) 241; 19 D.L.R.(4th) 577; 63 A.R. 321; 60 N.R. 81, consd. [para. 3].

Gingras Automobile Ltée, Re, [1962] S.C.R. 676; 4 C.B.R.(N.S.) 123; 34 D.L.R.(2d) 751, refd to. [para. 6].

West and Co., Re (1921), 2 C.B.R. 3 (Ont. S.C.), refd to. [para. 9].

Federal Business Development Bank v. Comm. de la santé & de la sécurité du travail, [1988] 1 S.C.R. 1061; 84 N.R. 308; 68 C.B.R.(N.S.) 209, refd to. [para. 10].

Tripp v. Gray et al. (1978), 27 C.B.R.(N.S.) 176, appld. [para. 14].

Short v. St. John's School Tax Authority and St. John's (City) (1990), 83 Nfld. & P.E.I.R. 203; 260 A.P.R. 203; 77 C.B.R.(N.S.) 228, refd to. [para. 15].

Thorne Riddell Inc. v. British Columbia - see Westline Ranch, Re.

Westline Ranch, Re (1987), 65 C.B.R.(N.S.) 16 (B.C.C.A.), refd to. [para. 17].

Arthur Manuel Limited, Re (1988), 70 Nfld. & P.E.I.R. 228; 215 A.P.R. 228 (Nfld. S.C.T.D.), refd to. [para. 18].

Midland Book Centre Ltd., Re; Winnipeg v. McMillan (1976), 22 C.B.R.(N.S.) 70 (Man. Q.B.), dist. [para. 19].

Wedow, Re (1974), 21 C.B.R.(N.S.) 89 (Man. Q.B.), dist. [para. 19].

Carlos Talavera Inc., Re; Ville de Montréal v. Mercure (1974), 18 C.B.R.(N.S.) 176 (Qué. S.C.), dist. [para. 19].

A.A. Electric and Swan Electric Ltd. v. Bank of British Columbia et al. (1978), 21 A.R. 248; 7 Alta. L.R.(2d) 92, refd to. [para. 20].

Saskatoon (City) v. Clarkson Gordon Inc. - see Empire Meat Co. (Bankrupt), Re (No. 2).

Empire Meat Co. (Bankrupt), Re (No. 2) (1989), 81 Sask.R. 1; 76 C.B.R.(N.S.) 61, appld. [para. 21].

Royal Bank v. Larue, [1928] A.C. 187; [1928] 1 W.W.R. 534; 8 C.B.R. 579; [1928] 1 D.L.R. 945 (P.C. Qué.), refd to. [para. 21].

Black Forest Restaurant Ltd., Re (1981), 37 C.B.R.(N.S.) 176; 121 D.L.R.(3d) 435; 47 N.S.R.(2d) 454; 90 A.P.R. 454 (T.D.), refd to. [para. 21].

Bourgault's Estate v. Deputy Minister of Revenue of Québec, [1980] 1 S.C.R. 35; 30 N.R. 24; 33 C.B.R.(N.S.) 301; 105 D.L.R.(3d) 270, refd to. [para. 21].

Dep. Min. of Revenue (Qué.) v. Rainville - see Bourgault's Estate v. Deputy Minister of Revenue of Québec.

Bourgault, Re; Dep. Min. of Revenue of Québec v. Rainville - see Bourgault's Estate v. Deputy Minister of Revenue of Québec.

Statutes Noticed:

Bankruptcy Act, R.S.C. 1985, c. B-3, sect. 2 [paras. 7, 23]; sect. 69(1), sect. 69(2), sect. 72(1) [para. 7]; sect. 136 [para. 14]; sect. 136(1)(e) [para. 8].

Constitution Act, 1867, sect. 91(21) [para. 6].

Municipal Taxation Act, R.S.A. 1980, c. M-31, sect. 1(n) [para. 5]; sect. 124(1) [para. 4]; sect. 126 [para. 19].

Urban Municipality Act, S.S. 1983-84, c. U-11, sect. 195, sect. 299 [para. 21].

Authors and Works Noticed:

Houlden, L., and C. Morawetz, Bankruptcy Law of Canada (3rd Ed. 1989) [para. 9].

Counsel:

M. West, for the applicant;

G. Ortt, for the respondent.

This application was heard before Marshall, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following judgment on November 20, 1990.