General Motors Acceptance Corp. of Canada Ltd. v. Hubbard, (1978) 21 N.B.R.(2d) 49 (CA)

• Judge: Hughes, C.J.N.B., Bugold and Ryan, JJ.A.
• Court: Court of Appeal (New Brunswick)
• Case Date: January 27, 1978
• Jurisdiction: New Brunswick
• Citations: (1978), 21 N.B.R.(2d) 49 (CA)

GMAC v. Hubbard (1978), 21 N.B.R.(2d) 49 (CA);

    21 R.N.-B.(2e) 49; 37 A.P.R. 49

MLB headnote and full text

Sommaire et texte intégral

General Motors Acceptance Corporation of Canada Ltd. v. Hubbard

Indexed As: General Motors Acceptance Corp. of Canada Ltd. v. Hubbard

Répertorié: General Motors Acceptance Corp. of Canada Ltd. v. Hubbard

New Brunswick Court of Appeal

Hughes, C.J.N.B., Bugold and Ryan, JJ.A.

January 27, 1978.

Summary:

Résumé:

This case arose out of a claim by a finance company for the return of a motor vehicle. The finance company claimed pursuant to a conditional sales contract. The defendant, who had possession of the vehicle, was a bona fide purchaser without notice from the conditional vendee.

The New Brunswick Court of Queen's Bench, dismissed the finance company's action and held that the defendant took title to the vehicle pursuant to s. 24(2) of the Sale of Goods Act, notwithstanding the protection granted to sellers by the Conditional Sales Act. The judgment of the New Brunswick Court of Queen's Bench is reported at 18 N.B.R.(2d) 248. The finance company appealed.

The New Brunswick Court of Appeal dismissed the appeal and affirmed the judgment of the New Brunswick Court of Queen's Bench.

Conditional Sales - Topic 343

Statutory requirements - Registration - Effect of registration or filing - The New Brunswick Court of Appeal stated that filing under the Conditional Sales Act does not constitute notice or constructive notice to innocent purchasers - See paragraphs 27 and 28.

Conditional Sales - Topic 1010

Rights of third parties - Loss of title to subsequent purchaser - Resale by conditional vendee to a bona fide purchaser without notice - A finance company sold a vehicle in Ontario under a conditional sales contract - The purchaser removed the vehicle to New Brunswick and resold it to the defendant bona fide purchaser without notice - Subsequently, the finance company learned that the vehicle had been removed to New Brunswick and it then registered the conditional sales contract in New Brunswick - The finance company brought an action against the defendant for the return of the vehicle - The New Brunswick Court of Appeal dismissed the action and held that the defendant could not in the circumstances be charged with notice of the conditional sales contract.

Sale of Goods - Topic 3121

Transfer or loss title to third parties - Sale by buyer to a bona fide purchaser without notice - General principles - The New Brunswick Court of Appeal interpreted s. 24(2) of the Sale of Goods Act and stated that s. 24(2) was not restricted to sales by mercantile agents but applied also to sales by buyers not within that category - See paragraphs 32 to 39.

Sale of Goods - Topic 3125

Transfer or loss of title to third parties - Sale by buyer to subsequent bona fide purchaser without notice - Where buyer is a purchaser under a conditional sales contract - A finance company sold a vehicle in Ontario under a conditional sales contract - The buyer removed the vehicle to New Brunswick and sold it to the defendant bona fide purchaser without notice - Subsequently, the finance company learned that the vehicle had been removed to New Brunswick and it then registered the conditional sales contract in New Brunswick - The finance company brought an action against the defendant for the return of the vehicle - The New Brunswick Court of Appeal dismissed the action and held that the defendant took title to the vehicle pursuant to s. 24(2) of the Sale of Goods Act, notwithstanding the protection granted to sellers under the Conditional Sales Act.

Cases Noticed:

Manchester Trust v. Furness, [1895] 2 Q.B. 539 (C.A.), refd to. [para. 9 and para. 31].

Vowles v. Island Finances Ltd., [1940] 4 D.L.R. 357 (B.C.C.A.), refd to. [para. 9].

Forristal v. McDonald (1882-84), 9 S.C.R. 12, refd to. [para. 12].

Traders Finance Corp. Ltd. v. Dawson Implements Ltd. (1959), 15 D.L.R.(2d) 515 (B.C.S.C.), refd to. [para. 15].

Century Credit Corporation v. Richard (1962), 34 D.L.R.(2d) 291 (Ont. C.A.), refd to. [para. 15].

Kozak v. Ford Motor Credit Co. of Canada Ltd. et al. (1971), 18 D.L.R.(3d) 735 (Sask. C.A.), refd to. [para. 21].

Nestons of Wembley Ltd. v. Williams, [1964] 3 All E.R. 532, not folld. [para. 22].

Commercial Credit Co. of Canada Ltd. v. Fulton Bros. (1922), 65 D.L.R. 699 (N.S.S.C.), refd to. [para. 30].

Joseph v. Lyons (1884-85), L.R. 15 Q.B.D. 280, refd to. [para. 30].

Jeffcott and Another v. Andrew Motors Ltd., [1960] N.Z.L.R. 721 (C.A.), folld. [para. 37].

Langmead v. Thyer Rubber Co. Limited, [1947] S.A.S.R. 29, folld. [para. 37].

Statutes Noticed:

Conditional Sales Act, R.S.N.B. 1973, c. C-15, sect. 1, sect. 2, sect. 5 [para. 7].

Sale of Goods Act, R.S.N.B. 1973, c. S-1, sect. 2, sect. 24 [para. 7].

Factors and Agents Act, R.S.N.B. 1973, c. F-1, sect. 1(1), sect. 2, sect. 12 [para. 7].

Authors and Works Noticed:

Fridman, Sale of Goods in Canada, pp. 277, 419 [para. 14].

LaForest, G.V., Filing under the Conditional Sales Act: Is it notice to subsequent purchasers? (1958), 36 C.B.R. 387 [para. 14].

Counsel:

Anthony Allman, for the appellant;

Frank McKenna, for the respondent.

This appeal was heard by HUGHES, C.J.N.B., BUGOLD and RYAN, JJ.A. The judgment of the New Brunswick Court of Appeal was delivered by BUGOLD, J.A., at Fredericton, N.B., on January 27, 1978.