Mutual Life Assurance Co. et al. v. Toronto-Dominion Bank, (1995) 104 Man.R.(2d) 241 (QBBK)

• Judge: Smith, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: July 27, 1995
• Jurisdiction: Manitoba
• Citations: (1995), 104 Man.R.(2d) 241 (QBBK)

Mutual Life v. TD Bk. (1995), 104 Man.R.(2d) 241 (QBBK)

MLB headnote and full text

The Mutual Life Assurance Company and Hoopp Realty Inc. (applicants) v. The Toronto-Dominion Bank (respondent)

(File No. CI 94-01-84693)

Indexed As: Mutual Life Assurance Co. et al. v. Toronto-Dominion Bank

Manitoba Court of Queen's Bench

In Bankruptcy

Winnipeg Centre

Smith, J.

July 27, 1995.

Summary:

The applicants sought an order declaring, inter alia, that the Toronto-Dominion Bank's registration of a financing statement in relation to a general security agreement given by Carlway Legal Management Group to the bank was not sufficient to perfect the bank's security interest in the assets of Carl­way under the general security agreement and that the bank's unperfected security interest was subordinate to the interest of the trustee in bankruptcy of Carlway.

The Manitoba Court of Queen's Bench, In Bankruptcy, denied the application.

Personal Property - Topic 6086

Security interests - Registration - Validity of - Curing of errors - An application was brought for an order declaring, inter alia, that the Toronto-Dominion Bank's regis­tration of a financing statement in relation to a general security agreement given by Carlway Legal Management Group to the bank was not sufficient to perfect the bank's security interest under the general security agreement - The applicants argued that there were omissions in the description of the collateral secured by the general security agreement - The Manito­ba Court of Queen's Bench, In Bankruptcy, held that the registration provided a des­cription of the collateral sufficient to iden­tify it and that even if there were a defect in the registration, the curative provision in s. 4(1) of the Personal Property Security Act would apply.

Personal Property - Topic 6092

Security interests - Registration - Validity of - Sufficiency of description - An ap­plication was brought for an order declar­ing, inter alia, that the Toronto-Dominion Bank's registration of a financing statement in relation to a general security agreement given by Carlway Legal Management Group to the bank was not sufficient to perfect the bank's security interest under the general security agreement - The applicants argued that there were omissions in the description of the collat­eral secured by the general security agree­ment - The Manitoba Court of Queen's Bench, In Bankruptcy, held that the regis­tration provided a description of the col­lateral sufficient to identify it - The financing statement gave notice and any­one who looked at the document could then contact the Toronto-Dominion Bank to see what specific items were included.

Personal Property - Topic 6365

Security interests - The security - General - Description of property secured - [See Personal Property - Topic 6092 ].

Cases Noticed:

Regal Feeds Ltd. v. Waldner et al., [1985] 5 W.W.R. 259; 34 Man.R.(2d) 299; 5 P.P.S.A.C. 32 (Q.B.), consd. [para. 24, Schedule B].

Bank of Nova Scotia v. Airline Credit Union Ltd., [1981] 3 W.W.R. 55; 7 Man.R.(2d) 6; 1 P.P.S.A.C. 237 (Co. Ct.), refd to. [Schedule B].

Sifton Credit Union Ltd. v. Barber et al. (1986), 41 Man.R.(2d) 295; 6 P.P.S.A.C. 9 (Q.B.), additional reasons (1987), 45 Man.R.(2d) 311 (Q.B.), refd to. [Sched­ule B].

RoyNat Inc. v. Ja-Sha Trucking (1992), 81 Man.R.(2d) 247; 30 W.A.C. 247; 4 P.P.S.A.C.(2d) 31 (C.A.), refd to. [Schedule B].

Bellini Manufacturing & Importing Ltd., Re (1981), 1 P.P.S.A.C. 259 (Ont. C.A.), refd to. [Schedule B].

Gibbons, Re (1984), 3 O.A.C. 291; 4 P.P.S.A.C. 53 (C.A.), refd to. [Schedule B].

Baier (Trustee of) v. Massey-Ferguson Finance Co. of Canada (1987), 7 P.P.S.A.C. 62 (Ont. C.A.), refd to. [Schedule B].

Redi-Mix Ltd. v. Hub Dairy & Barn Sys­tems Ltd. et al. (1987), 63 Sask.R. 262; 7 P.P.S.A.C. 165 (Q.B.), refd to. [Sche­dule B].

Light's Travel Service Ltd., Re (1985), 56 C.B.R.(N.S.) 175 (B.C.S.C.), refd to. [Schedule B].

Salok Hotel Co., Re (1967), 11 C.B.R.(N.S.) 95 (Man. Q.B.), affd. (1967), 11 C.B.R.(N.S.) 158 (C.A.), refd to. [Schedule B].

Vrablik, Re (1993), 17 C.B.R.(3d) 152 (Ont. Gen. Div.), refd to. [Schedule B].

Peat Marwick Ltd. v. General Motors Acceptance Corp. of Canada Ltd. (1990), 84 Sask.R. 104; 1 P.P.S.A.C.(2d) 30 (Q.B.), refd to. [Schedule B].

National Bank of Canada v. Gallagher Refrigeration & Air Conditioning (Receiver of) (1988), 54 Man.R.(2d) 177; 8 P.P.S.A.C. 217 (Q.B.); affd. (1989), 9 P.P.S.A.C. 156 (C.A.), refd to. [Schedule B].

Milne, Re, 29 C.B.R.(3d) 56 (Ont. Gen. Div.), refd to. [Schedule B].

Elmcrest Furniture v. Price Waterhouse Ltd. (1985), 41 Sask.R. 125; 5 P.P.S.A.C. 22 (Q.B.), refd to. [Schedule B].

Canadian Imperial Bank of Commerce v. Federal Business Development Bank et al. (1984), 32 Sask.R. 77; 4 P.P.S.A.C. 50 (Q.B.), refd to. [Schedule B].

Borg-Warner Acceptance Canada Ltd. v. Federal Business Development Bank (1986), 52 Sask.R. 81; 6 P.P.S.A.C. 303 (C.A.), refd to. [Schedule B].

Hickson, Re; Clarkson Co. v. Reichhold Ltd. (1984), 26 Man.R.(2d) 5; 3 P.P.S.A.C. 263 (C.A.), refd to. [Schedule B].

Steinbach Credit Union Ltd. v. Manitoba Agricultural Credit Corp. (1991), 72 Man.R.(2d) 161; 2 P.P.S.A.C.(2d) 81 (Q.B.), affd. (1992), 75 Man.R.(2d) 303; 6 W.A.C. 303; 2 P.P.S.A.C.(2d) 209 (C.A.), refd to. [Schedule B].

Ovens, Re (1979), 1 P.P.S.A.C. 131 (Ont. C.A.), refd to. [Schedule B].

Statutes Noticed:

Personal Property Security Act, R.S.M. 1987, c. P-35; C.C.S.M., c. P-35, sect. 4(1) [para. 16].

Counsel:

G. Bruce Taylor and Catherine E. Carlson, for the applicants;

Donald G. Douglas, for the respondent.

This application was heard before Smith, J., of the Manitoba Court of Queen's Bench, In Bankruptcy, who delivered the following judgment on July 27, 1995.