Northrim Mines Ltd., Re; Isaac v. Cook and Woodward, (1982) 43 A.R. 1 (NWTSC)

Judgede Weerdt, J.
CourtSupreme Court of Northwest Territories (Canada)
Case DateJanuary 15, 1982
JurisdictionNorthwest Territories
Citations(1982), 43 A.R. 1 (NWTSC)

Northrim Mines Ltd., Re (1982), 43 A.R. 1 (NWTSC)

MLB headnote and full text

Re Northrim Mines Ltd.; Isacc, Receiver and Manager of Northrim Mines Ltd. v. Cook, Mining Recorder for the Mackenzie Mining District of the Northwest Territories and H.W. Woodward, Director of Northern Non-Renewable Resources, Department of Indian Affairs and Northern Development; Stroeder Holdings Ltd., Morberg Holdings Ltd., and Chamberlain Holdings Ltd. v. Northrim Mines Ltd.; Robinsons' Trucking Ltd. v. Northrim Mines Ltd.

Indexed As: Northrim Mines Ltd., Re; Isaac v. Cook and Woodward

Northwest Territories Supreme Court

de Weerdt, J.

July 13, 1982.

Summary:

The receiver of Northrim Mines Ltd. brought an action for declaration that he was entitled to dispose of certain mineral claims and a mining lease in realization of the security granted to a bank under a debenture. The issues were whether royalty agreements respecting the mining claims affected their transferability and whether a writ of execution took priority over the bank's crystallized floating charge under the debenture.

The Northwest Territories Supreme Court allowed the application in the receiver's favour and held that the royalty agreements did not affect transferability of the mining claim and that the debenture took priority over the writ of execution. The matter of the lease was deferred to another judgment.

Company Law - Topic 5432

Borrowing - Debentures - Priority - The Northwest Territories Supreme Court held that the holder of a floating charge debenture, which has crystallized, has priority over an execution creditor, if a sale pursuant to the execution does not proceed crystallization - See paragraphs 27 to 37.

Execution - Topic 1057

Writ of fieri facias - Issue and delivery - What interests bound - The Northwest Territories Supreme Court held that an interest in mineral claims is exigible under a writ of execution - See paragraphs 27 to 28.

Mines and Minerals - Topic 8166

Regulation - Royalty agreements - Whether royalty rights constitute interest in land - The holder of mining claims granted a 2% royalty on smelter returns respecting the claim - The Northwest Territories Supreme Court held that the royalty agreement did not constitute an interest in the minerals or the mineral claims themselves and therefore did not create any enforceable interest respecting the lands which might affect transferability of the mineral claims - See paragraphs 17 to 26.

Cases Noticed:

Vanguard Petroleums Ltd. v. Vermont Oil & Gas Ltd., [1977] 2 W.W.R. 66; 4 A.R. 251 (Alta. S.C.), appld. [para. 22].

Bensette and Campbell v. Reece, [1973] 2 W.W.R. 497 (Sask. C.A.), dist. [para. 22].

Beakhurst v. Williams and Cadillac Explorations Ltd., [1971] 1 W.W.R. 230, appld. [para. 25].

Jellet v. Wilkie (1896), 26 S.C.R. 282, consd. [para. 34].

Re Standard Manufacturing Co., [1891] 1 Ch. 627 (C.A.), consd. [para. 34].

Ontario Development Corporation v. I.C. Suatac Construction Ltd. (1976), 12 O.R.(2d) 464; 69 D.L.R.(3d) 353; 22 C.B.R.(N.S.) 42, appld. [para. 34].

MacKay and Hughes (1973) Ltd. v. Martin Potatoes Inc., Dominion Stores Ltd. (1981), 15 B.L.R. 312 (Ont. S.C.), dist. [para. 35].

Nesmith v. Williston (1844), 4 N.B.R. 459 (C.A.), refd to. [para. 36].

Sloan v. Whalen (1865), 15 U.C.C.P. 319 (C.A.), refd to. [para. 36].

Re Woodall (1904), 8 O.L.R. 288 (C.A.), refd to. [para. 36].

Statutes Noticed:

Canada Mining Regulations, C.R.C. 1978, c. 1516, sect. 62, sect. 63 [para. 8].

Land Titles Act, R.S.C. 1970, c. L-4, sect. 2 [para. 32]; sect. 125 [para. 31].

Seizures Ordinance, R.O.N.W.T. 1974, c. S-6, sect. 4 [para. 29]; sect. 5 [para. 28]; sect. 12 [para. 30].

Authors and Works Noticed:

LaForest, Some Aspects of the Writ of Fieri Facias (1959), 12 U.N.B.L.J. 39, 47-48. [para. 36].

Williamson, J.R., Execution Against Land in New Brunswick (1981), 30 U.N. B.L.J. 131 [para. 36].

Counsel:

J.E. RICHARD, for the receiver;

L. TANCOCK, for Chamberlain Holdings Ltd., Morberg Holdings Ltd., and Stroeder Holdings Ltd.;

E. JOHNSON, for Robinsons' Trucking Ltd.;

L. MINISH-COOPER, for the Mining Recorder and Director, Non-renewable Resources.

This case was heard on January 15, 1982 at Yellowknife, N.W.T., before de WEERT, J., of the Northwest Territories Supreme Court, who delivered the following judgment on July 13, 1982:

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3 practice notes
  • Scurry-Rainbow Oil v. Galloway Estate, (1993) 138 A.R. 321 (QB)
    • Canada
    • Alberta Court of Queen's Bench of Alberta (Canada)
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    ...(1961), 36 W.W.R.(N.S.) 167 (Alta. S.C.), 41 W.W.R.(N.S.) 210 (C.A.), [1963] S.C.R. 482, refd to. [para. 103]. Northrim Mines Ltd., Re (1982), 43 A.R. 1 (N.W.T.S.C.), refd to. [para. 105]. Emerald Resources Ltd. v. Sterling Oil Properties Management Ltd. (1969), 3 D.L.R.(3d) 630 (Alta. C.A.......
  • Canpar Holdings Ltd. v. Sask., (1987) 60 Sask.R. 128 (CA)
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    ...[1940] Ex. C.R. 90, consd. [para. 35]. Saskatchewan Minerals v. Keys, [1972] 2 W.W.R. 108, consd. [para. 38]. Northrim Mines Ltd., Re (1982), 43 A.R. 1 (N.W.T.S.C.), consd. [para. Emerald Resources v. Sterling Oil Properties Management Ltd. (1969), 3 D.L.R.(3d) 630, consd. [para. 42]. Minis......
  • Business Capital v. Coxheath Gold, (1993) 128 N.S.R.(2d) 118 (SC)
    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • December 15, 1993
    ...affd. [1963] S.C.R. 482, refd to. [para. 17]. Bensette v. Reece, [1973] 2 W.W.R. 497 (Sask. C.A.), dist. [para. 19]. Isaac v. Cook (1982), 43 A.R. 1; 44 C.B.R.(N.S.) 39 (N.W.T.S.C.), refd to. [para. Northern Mines Ltd., Re - see Isaac v. Cook. Statutes Noticed: Civil Procedure Rules (N.S.),......
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  • Scurry-Rainbow Oil v. Galloway Estate, (1993) 138 A.R. 321 (QB)
    • Canada
    • Alberta Court of Queen's Bench of Alberta (Canada)
    • February 26, 1993
    ...(1961), 36 W.W.R.(N.S.) 167 (Alta. S.C.), 41 W.W.R.(N.S.) 210 (C.A.), [1963] S.C.R. 482, refd to. [para. 103]. Northrim Mines Ltd., Re (1982), 43 A.R. 1 (N.W.T.S.C.), refd to. [para. 105]. Emerald Resources Ltd. v. Sterling Oil Properties Management Ltd. (1969), 3 D.L.R.(3d) 630 (Alta. C.A.......
  • Canpar Holdings Ltd. v. Sask., (1987) 60 Sask.R. 128 (CA)
    • Canada
    • Saskatchewan Court of Appeal (Saskatchewan)
    • October 16, 1987
    ...[1940] Ex. C.R. 90, consd. [para. 35]. Saskatchewan Minerals v. Keys, [1972] 2 W.W.R. 108, consd. [para. 38]. Northrim Mines Ltd., Re (1982), 43 A.R. 1 (N.W.T.S.C.), consd. [para. Emerald Resources v. Sterling Oil Properties Management Ltd. (1969), 3 D.L.R.(3d) 630, consd. [para. 42]. Minis......
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    • Canada
    • Nova Scotia Supreme Court of Nova Scotia (Canada)
    • December 15, 1993
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