Minister of National Revenue v. Steckmar Corp., (2004) 280 F.T.R. 10 (FC)

• Jurisdiction: Federal Jurisdiction (Canada)
• Court: Federal Court (Canada)
• Judge: Beaudry, J.
• Citation: (2004), 280 F.T.R. 10 (FC),2004 FC 1568
• Date: 05 October 2004

MNR v. Steckmar Corp. (2004), 280 F.T.R. 10 (FC)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

.........................

Temp. Cite: [2004] F.T.R. TBEd. DE.010

Dans l'affaire de la Loi de l'Impôt sur le revenu

Dans l'affaire d'une cotisation ou des cotisations établies par le ministre du Revenu national en vertu d'une ou plusieurs des lois suivantes la Loi de l'Impôt sur le revenu, le Régime de pensions du Canada et la Loi sur l'assurance-emploi

La Corporation Steckmar/Steckmar Corporation (débitrice judiciaire) et Steckmar National Realty and Investment Corporation (tierce saisie)

(ITA-1096-99; 2004 CF 1568; 2004 FC 1568)

Indexed As: Minister of National Revenue v. Steckmar Corp.

Federal Court

Beaudry, J.

November 26, 2004.

Summary:

The judgment creditor, the Minister of National Revenue, moved for a final garnishment order against the corporate garnishee, applicable to advances which the garnishee received without interest over the last 25 years from the judgment debtor, a corporation associated with the garnishee.

A Prothonotary of the Federal Court, in a decision reported 260 F.T.R. 209, allowed the application. A motion for appeal was brought.

The Federal Court dismissed the motion.

Courts - Topic 4055

Federal Court of Canada - Jurisdiction - Trial Division - Execution of judgments (incl. garnishment and enforcement of arbitration awards) - The Minister of National Revenue sought, by motion in Federal Court for a final garnishment order, to garnishee from a Quebec corporation associated with the Quebec corporate judgment debtor, sums that the latter lent to the garnishee, which were repayable when the garnishee's financial situation allowed it - The parties agreed that the obligation between the two corporations was a term obligation but the garnishee submitted that the debt was not payable - A Prothonotary allowed the Minister's motion and ruled as follows: (1) rule 453 of the Federal Court Rules, authorizing the court to summarily determine questions respecting the garnishee's liability, was applicable here where the garnishee disputed the term of payment; (2) the court had jurisdiction to grant relief where provincial law applied in an incidental manner; (3) the judgment debtor failed, to the Minister's prejudice, to exercise its rights against the garnishee; (4) by virtue of art. 1627 of the Civil Code of Québec (C.C.Q.), the Minister could exercise those rights; (5) the Minister did not need to proceed by action; (6) the rights in question consisted in a judicial determination of the term of payment pursuant to art. 1512 C.C.Q.; and (7) the sums due by the garnishee to the judgment debtor were payable immediately - The Federal Court upheld the decision.

Quebec Obligations - Topic 2652

Effect of contracts - Oblique action - When available (incl. procedure) - [See Courts - Topic 4055 ].

Quebec Obligations - Topic 3725

Modalities of obligations - Obligations with a term - Judicial determination of term - [See Courts - Topic 4055 ].

Cases Noticed:

Pfizer Canada Inc. et al. v. Apotex Inc. et al. (2003), 228 F.T.R. 60 (T.D.), refd to. [para. 16].

Canada v. Aqua-Gem Investments Ltd., [1993] 2 F.C. 425; 149 N.R. 273 (F.C.A.), refd to. [para. 16].

Miida Electronics Inc. v. Mitsui O.S.K. Lines Ltd. and ITO-International Terminal Operators Ltd., [1986] 1 S.C.R. 752; 68 N.R. 241, appld. [para. 19].

Bois de Construction du Nord (1971) ltée v. Charles Guilbault Inc. (1986), 77 N.R. 392 (F.C.A.), consd. [para. 23].

Ministre du Revenu national v. Gadbois et al. (2002), 298 N.R. 374; 2002 FCA 228, refd to. [para. 39].

Statutes Noticed:

Civil Code of Québec, S.Q. 1991, c. 64, art. 1512 [para. 31]; art. 1627 [para. 35].

Federal Court Rules, 1998, rule 449(1)(a)(i) [para. 27]; rule 451(1), rule 451(2) [para. 28]; rule 453 [para. 10].

Authors and Works Noticed:

Baudouin, Jean-Louis and Jobin, Pierre-Gabriel, Les Obligations (5th Ed. 1998), pp. 452 and 453, no. 573 [para. 30].

Emery, B., and Ferland, D., Précis de procédure civile du Québec (1997), p. 198 [para. 37].

Counsel:

Claude Bernard, for the seizing creditor;

Virginie Paquet, for the judgment debtor and garnishee.

Solicitors of Record:

Morris Rosenberg, Deputy Attorney General of Canada, Montreal, Quebec, for the creditor;

Angelopoulos, Kiriazis, Montreal, Quebec, for the garnishee.

This motion to appeal was heard at Montreal, Quebec, on October 5, 2004, by Beaudry, J., of the Federal Court, who delivered the following decision on November 26, 2004.