Horne & Pitfield Foods Ltd. v. 256793 Alberta Ltd. et al., (1986) 74 A.R. 196 (QBM)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: November 12, 1986
• Citations: (1986), 74 A.R. 196 (QBM)

Horne & Pitfield Foods v. 256793 Alta. (1986), 74 A.R. 196 (QBM)

MLB headnote and full text

Horne & Pitfield Foods Limited v. 256793 Alberta Ltd., Canadian Imperial Bank of Commerce and Walter Hewko, The Sheriff of the Judicial District of Lethbridge

(No. 8603 22015)

Indexed As: Horne & Pitfield Foods Ltd. v. 256793 Alberta Ltd. et al.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Funduk, Master

November 12, 1986.

Summary:

256793 Alberta Ltd. (the tenant) rented premises from Horne & Pitfield Foods Ltd. (the landlord). The tenant's rent was in arrears. The sheriff, acting on instructions from the landlord, distrained against the tenant's chattels. The chattels were sold by the sheriff, but before he distributed the sale proceeds the tenant was petitioned into bankruptcy. An issue arose as to whether the sheriff in levying distress for rent arrears on the tenant's chattels was acting as agent of the landlord within the meaning of s. 50(1) of the Bankruptcy Act, R.S.C. 1970, c. B-3. A Master of the Alberta Court of Queen's Bench held that the sheriff was not acting as an agent for the landlord and therefore the proceeds from the sale of the chattels must go to the bankruptcy trustee.

Bankruptcy - Topic 3608

Creditors - Rights of landlord - A landlord instructed a sheriff to distrain against a tenant's chattels - The sheriff sold the chattels, but before the proceeds were distributed the tenant was petitioned into bankruptcy - A Master of the Alberta Court of Queen's Bench held that in levying distress, the sheriff was not acting as an agent of the landlord and therefore the sale proceeds must go to the trustee in bankruptcy instead of the landlord.

Cases Noticed:

Canadian Credit Trust Association v. Beaver Trucking, [1959] S.C.R. 311, refd to. [para. 5].

Re Profoot Enterprises (1981), 31 A.R. 420, consd. [paras. 5, 15, 16, 18].

Bank of Nova Scotia v. Wojnar, 34 A.R. 149; 12 Alta. L.R.(2d) 239 (Q.B.), consd. [paras. 6, 7].

Pickel v. Mykycy, [1939] 2 W.W.R. 232 (Sask. K.B.), consd. [paras. 6, 8].

In Re Scragg, [1924] 3 W.W.R. 905 (Alta. S.C.), consd. [paras. 6, 9].

In Re King George Billiard Hall, [1925] 1 W.W.R. 172 (Alta. S.C.), consd. [paras. 6, 10].

McCormick v. Haworth, [1929] 1 W.W.R. 129 (Sask. C.A.), consd. [paras. 6, 8, 26].

Re Richard Bros., [1925] 2 D.L.R. 525 (Alta. S.C.A.D.), dist. [paras. 6, 14, 16, 19].

Re Southern Fried Foods (1976), 21 C.B.R.(2d) 267 (Ont. S.C.), consd. [paras. 6, 11, 12, 27].

Re Gingras Automobile, 34 D.L.R.(3d) 751, consd. [para. 18].

Re Radioland (1957), 22 W.W.R.(N.S.) 180 (Sask. C.A.), refd to. [para. 18].

Caisse-Populaire v. Den-Lou Holdings, 41 C.B.R.(N.S.) 82 (Alta. Q.B. Master), refd to. [para. 21].

Canadian Imperial Bank of Commerce, 65 A.R. 377; 41 Alta. L.R.(2d) 48 (Q.B. Master), consd. [para. 23].

R. v. Berriault, 70 A.R. 319; 43 Alta. L.R.(2d) 163 (C.A.), folld. [para. 24].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1970, c. B-3, sect. 50(1).

Counsel:

W.B. Russell (Bishop and McKenzie), for the applicant;

S.V. Wensel (Barr Wensel), for the trustee.

This case was heard before Funduk, Master in Chambers, of the Alberta Court of Queen's Bench, who delivered the following decision on November 12, 1986: