Dorbern Investments Ltd. v. Provincial Bank of Canada, Lentini and Caparello,

• Jurisdiction: Federal Jurisdiction (Canada)
• Judge: Laskin, C.J.C., Ritchie, Beetz, Estey and McIntyre, JJ.
• Citation: (1981), 37 N.R. 74 (SCC),37 NR 74,18 RPR 145,[1981] 1 SCR 459,122 DLR (3d) 197,1981 CanLII 45 (SCC)
• Court: Supreme Court (Canada)
• Date: 28 May 1981

Dorbern Inv. Ltd. v. Provincial Bk. (1981), 37 N.R. 74 (SCC)

MLB headnote and full text

Dorbern Investments Ltd. v. Provincial Bank of Canada, Lentini and Caparello

Indexed As: Dorbern Investments Ltd. v. Provincial Bank of Canada, Lentini and Caparello

Supreme Court of Canada

Laskin, C.J.C., Ritchie, Beetz, Estey and McIntyre, JJ.

May 28, 1981.

Summary:

This case arose out of a claim of priority by a mechanic's lienholder against a mortgagee. The trial judge found in favour of the lien claimant.

On appeal to the Ontario Divisional Court the appeal was allowed and the mortgagee was given priority over the lien claimant. The lien claimant appealed to the Ontario Court of Appeal.

The Ontario Court of Appeal dismissed the appeal. The lien claimant appealed to the Supreme Court of Canada.

The Supreme Court of Canada dismissed the appeal.

Mechanics' Liens - Topic 6303

Priorities - Between lienholder and mortgagee - After a lien arose a mortgage company made advances to an owner without taking a mortgage - The mortgage company did not receive any written notice of the lien - Later the mortgage company took a mortgage on the owner's land to secure the advances and registered the mortgage prior to the registration of the claim for lien - The Supreme Court of Canada held that the mortgage had priority over the lienholder - The Supreme Court of Canada stated that such a mortgage (given for past advances) has priority by virtue of priority of registration (see paragraph 10).

Statutes Noticed:

Mechanics' Lien Act, R.S.O. 1970, c. 267, sect. 14(1), sect. 20 [para. 4].

Registry Act, R.S.O. 1970, c. 409, sect. 69, sect. 70 [para. 12].

Counsel:

Robert E. Edgar, Q.C., and Edward M. Werner, for the appellant;

C.E. Woollcombe, Q.C., for the respondent.

This appeal was heard by LASKIN, C.J.C., RITCHIE, BEETZ, ESTEY and McINTYRE, JJ., of the Supreme Court of Canada at Ottawa, Ontario on March 9, 1981.

The judgment of the Supreme Court of Canada was delivered by LASKIN, C.J.C., on May 28, 1981.