Northwest Territories (Commissioner) v. Manik & Sons Contractors Ltd. and McNaught Pontiac, Buick, Cadillac Ltd., (1980) 34 A.R. 361 (NWTSC)

• Judge: Tallis, J.
• Court: Supreme Court of Northwest Territories (Canada)
• Case Date: November 10, 1980
• Jurisdiction: Northwest Territories
• Citations: (1980), 34 A.R. 361 (NWTSC)

NWT v. Manik & Sons Contractors (1980), 34 A.R. 361 (NWTSC)

MLB headnote and full text

Northwest Territories, Commissioner of v. Manik & Sons Contractors Ltd. and McNaught Pontiac Buick Cadillac Ltd. (claimant)

(SC 4604)

Indexed As: Northwest Territories (Commissioner) v. Manik & Sons Contractors Ltd. and McNaught Pontiac, Buick, Cadillac Ltd.

Northwest Territories Supreme Court

Tallis, J.

November 10, 1980.

Summary:

The plaintiff sought a declaration that his claim against the defendant under a debenture was entitled to priority over conditional sale agreements subsequently entered into between the defendant as purchaser and the claimant as vendor of two trucks. The conditional sales contracts were not registered in accordance with ss. 3 and 4 of the Conditional Sales Ordinance, R.O.W.N.T., c. C-9.

The Northwest Territories Supreme Court dismissed the plaintiff's application. The court found that the plaintiff was not a subsequent purchaser under the Conditional Sales Ordinance and that the plaintiff's equitable interest in the trucks was not converted into a legal estate upon crystallization of the debenture.

Conditional Sales - Topic 1042

Rights of third parties - Subsequent purchasers and mortgagees - What constitutes a subsequent purchaser - The Northwest Territories Supreme Court held that a debenture holder was not a subsequent purchaser under s. 3(3) of the Conditional Sales Ordinance, R.O.W.N.T., c. C-9, when the debenture crystallized after the mortgagor purchased goods under a conditional sales contract that was not registered in accordance with the Conditional Sales Ordinance - See paragraphs 13 to 15.

Conditional Sales - Topic 1042

Rights of third parties - Subsequent purchasers and mortgagees - What constitutes a subsequent purchaser - The Northwest Territories Supreme Court held that an equitable interest in goods encumbered by conditional sales contracts, which interest arose under a debenture, was not converted into a legal estate upon crystallization, so as to exclude claims by the conditional sales vendor - See paragraph 18.

Cases Noticed:

J.R. Auto Brokers Ltd. v. Hillcrest Auto Lease Ltd. et al. (1968), 70 D.L.R.(2d) 26, appld. [paras. 15, 17].

Sigurdson v. Massey-Ferguson Finance Co. of Canada Ltd. et al., 80 D.L.R. (3d) 258; 4 B.C.L.R. 334, consd. [paras. 15, 17].

United Electric Company Limited v. Watson et al., [1927] 1 W.W.R. 87, consd. [para. 17].

Liquid Carbonic Company v. Rowntree, [1924] 1 D.L.R. 1092, consd. [para. 17].

Bank of Montreal v. Glendale (Atlantic) Ltd. (1977), 20 N.S.R.(2d) 216; 27 A.P.R. 216, consd. [para. 17].

Dalgleish v. N.C.R. Canada Ltd. et al., [1979] 2 W.W.R. 584, consd. [para. 17].

Sonicus Holdings Ltd. v. Coopers & Lybrand Limited, 31 C.B.R. 115, consd. [para. 17].

Roynat Ltd. v. Chilko Modulars Ltd., 27 C.B.R. 278, consd. [para. 17].

Plaza Equities Ltd. et al. v. Bank of Nova Scotia (1978), 11 A.R. 480, consd. [para. 17].

Harvey Dodds Limited v. Royal Bank of Canada, [1979] 6 W.W.R. 722, consd. [para. 18].

Statutes Noticed:

Corporation Securities Registration Ordinance, R.O.N.W.T. 1974, c. C-17 [para. 6].

Conditional Sales Ordinance, R.O.N.W.T. 1974, c. C-9, sect. 3 [paras. 9, 12, 13, 15]; sect. 4 [paras. 9, 12, 13]; sect. 2 [para. 12].

Sale of Goods on Condition Act, R.S.B.C. 1979, c. 373, sect. 25 [para. 17].

Counsel:

J.G. Gilmour, for the plaintiff;

P. Spence, for the claimant.

This case was heard before TALLIS, J., of the Northwest Territories Supreme Court who delivered the following judgment on November 10, 1980.