Minister of National Revenue v. Steckmar Corp., (2004) 260 F.T.R. 209 (FC)

• Jurisdiction: Federal Jurisdiction (Canada)
• Court: Federal Court (Canada)
• Citation: (2004), 260 F.T.R. 209 (FC),2004 FC 581
• Date: 11 February 2004

MNR v. Steckmar Corp. (2004), 260 F.T.R. 209 (FC)

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[French language version follows English language version]

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

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Temp. Cite: [2004] F.T.R. TBEd. MY.014

In Re The Income Tax Act;

and

In Re one or more assessments made by the Minister of National Revenue pursuant to one or more of the following statutes: the Income Tax Act, the Canada Pension Plan and the Employment Insurance Act

La Corporation Steckmar/Steckmar Corporation (judgment debtor) and Steckmar National Realty and Investment Corporation (garnishee)

(ITA-1096-99; 2004 CF 581; 2004 FC 581)

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

Federal Court

Morneau, Prothonotary

April 19, 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 allowed the application.

Courts - Topic 4055

Federal Court of Canada - Jurisdiction - Trial Division - Execution of judgments (incl. garnishment and enforcement of awards) - The Minister of National Revenue sought, by motion in Federal Court for a final garnishment order, to garnishee from a corporation associated with the corporate judgment debtor, sums that the latter lent to the garnishee, without interest, over 25 years, which were repayable when the garnishee's financial situation allowed it - The garnishee did not contest its obligation to the judgment debtor but submitted that the debt was not payable - A Prothonotary of the Federal Court 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.

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:

Ministre du Revenu national v. Gadbois et al. (2002), 298 N.R. 374; 2002 FCA 228, consd. [para. 22].

Bois de Construction du Nord (1971) Ltée v. Guilbault (Charles) Inc. et al. and Minister of National Revenue, [1986] 2 C.T.C. 227; 77 N.R. 392 (F.C.A.), consd. [para. 22].

Boisvert v. Investissements D.M.A. inc., 99 BE-537 (C.A.), consd. [para. 28].

Bélanger et autres v. Cheynet et Ses Fils S.A. et Cheynet et Ses Fills (Canada) Limitée et autre, [1973] R.P. 209 (Que. S.C.), consd. [para. 36].

Investissements Étrusques inc. v. Frato Construction inc., [1984] C.S. 573, consd. [para. 37].

Shore v. Shore, REJB 1998-09666 (Que. S.C.), refd to. [para. 39].

Minister of National Revenue v. 158377 Canada Inc. et al. (2000), 204 F.T.R. 92 (T.D.), refd to. [para. 42].

Binette v. Globensky (1931), 71 C.S. (Que.) 111, consd. [para. 54].

Passfield v. Truchon, 99BE-454 (Que.), refd to. [para. 56].

Statutes Noticed:

Civil Code of Québec. S.Q. 1991, c. 64, art. 1512, art. 1627 [para. 26].

Federal Court Rules, 1998, rule 451, rule 453 [para. 14].

Authors and Works Noticed:

Baudouin, Jean-Louis, and Jobin, Pierre-Gabriel, Les Obligations (5th Ed. 1998), pp. 452 and 453, no. 573 [para. 51]; 537 [para. 35].

Ferland, Denis, and Emery, Benoît, Précis de procédure civile du Québec (3rd. Ed. 1997), vol. 2, p. 198 [para. 33].

Ferland, Philippe, Traité de procédure civile (1969), t. 2, pp. 534, 537 [para. 34].

Counsel:

Claude Bernard, for the creditor;

Basile Angelopoulos, for the judgment debtor and the third party.

Solicitors of Record:

Morris Rosenberg, Deputy Attorney General of Canada, Ottawa, Ontario, for the creditor;

Angelopoulos, Kiriazis, Montreal, Quebec, for the judgment debtor and the third party.

This motion was heard at Montreal, Quebec, on February 11, 2004, by Morneau, Prothonotary, of the Federal Court, who delivered the following decision at Montreal, Quebec, on April 19, 2004.