Farm Credit Canada et al. v. Agristar Produce (Sask.) Ltd. et al., 2005 SKCA 36

• Judge: Jackson, J.A.
• Court: Court of Appeal (Saskatchewan)
• Case Date: March 09, 2005
• Jurisdiction: Saskatchewan
• Citations: 2005 SKCA 36;(2005), 269 Sask.R. 55 (CA)

Farm Credit Can. v. Agristar (2005), 269 Sask.R. 55 (CA);

    357 W.A.C. 55

MLB headnote and full text

Temp. Cite: [2005] Sask.R. TBEd. MY.005

Rural Municipality of Canaan No. 225 (appellant/respondent) and Farm Credit Canada, Ernst & Young Inc. (respondents/applicants) and Agristar Produce (Sask.) Ltd. (formerly Pak-Wel Produce (Sask.) Ltd.), Saskatchewan Valley Potato Corporation, Bank of Nova Scotia, Hutterian Brethren Church of Biggar Inc., New Holland (Canada) Credit Company and Citicapital Limited (respondents/respondents)

(No. 1106; 2005 SKCA 36)

Indexed As: Farm Credit Canada et al. v. Agristar Produce (Sask.) Ltd. et al.

Saskatchewan Court of Appeal

Jackson, J.A.

March 9, 2005.

Summary:

In a decision reported (2005), 268 Sask.R. 102, the Saskatchewan Court of Queen's Bench vested property in the name of Farm Credit Canada. The Rural Municipality of Canaan No. 225, whose interest was based on tax liens on the subject property, appealed. The notice of appeal gave rise to a stay of the vesting order. Farm Credit Canada applied to lift the stay.

The Saskatchewan Court of Appeal, per Jackson, J.A., allowed the application.

Practice - Topic 8953

Appeals - Stay of proceedings pending appeal - Circumstances when stay may be lifted - A Rural Municipality's interest in lands subject to a vesting order in favour of Farm Credit Canada was based on tax liens - The vesting order, which would allow the lands to be resold, required that the Rural Municipality be paid from the proceeds on one tax lien and that money be paid into court with respect to other, disputed, tax amounts claimed by the Rural Municipality - The Rural Municipality appealed against the vesting order - This stayed the order - The Rural Municipality did not object to the payment made to it - As to the other payment, the Rural Municipality said that without the money in hand, the treasurer could not discharge the tax lien and the Court of Queen's Bench lacked the authority to compel him to do so - Farm Credit Canada sought to lift the stay - The Saskatchewan Court of Appeal, per Jackson, J.A., allowed the application where the Rural Municipality's interests in the funds paid into court and its ability to present its arguments regarding the coercive effect of ss. 12 and 30 of the Tax Collection Act was preserved.

Cases Noticed:

Bank of Nova Scotia v. Simonot et al. (1992), 100 Sask.R. 257; 18 W.A.C. 257 (C.A.), refd to. [para. 10, footnote 2].

Ochapowace First Nation v. Araya and Shepherd (1994), 123 Sask.R. 311; 74 W.A.C. 311 (C.A.), refd to. [para. 10, footnote 2].

Aquino et al. v. First Choice Capital Fund Ltd. et al. (1995), 134 Sask.R. 241; 101 W.A.C. 241 (C.A.), refd to. [para. 10, footnote 2].

Imperial Oil et al. v. Bulani Agro Inc., [2002] Sask.R. Uned. 136; 2002 SKCA 95, refd to. [para. 10, footnote 2].

Royal Bank of Canada v. Choiceland Dehydrating Ltd. et al., [1989] S.J. No. 272 (C.A.), refd to. [para. 15, footnote 4].

Statutes Noticed:

Tax Enforcement Act, R.S.S. 1978, c. T-2, sect. 12, sect. 30 [para. 3].

Counsel:

Rick M. Van Beselaere, for Farm Credit Canada and Ernst & Young Inc.;

Perry D. Erhardt, for Saskatchewan Valley Potato Corporation;

Frances R. Dearlove, for Judith River Farms;

Ron Thorstad, for the Rural Municipality of Canaan No. 225;

No one appearing for Agristar Produce (Sask.) Ltd., Bank of Nova Scotia, Hutterian Brethren Church of Biggar Inc., New Holland (Canada) Credit Company and Citicapital Limited.

This application was heard and decided on March 9, 2005, by Jackson, J.A., of the Saskatchewan Court of Appeal, with written reasons filed on March 11, 2005.