Ouellet (Bankrupt), Re, (2004) 326 N.R. 379 (SCC)

• Judge: McLachlin, C.J.C., Major, Bastarache, Binnie and LeBel, JJ.
• Court: Supreme Court of Canada
• Case Date: Thursday October 28, 2004
• Jurisdiction: Canada (Federal)
• Citations: (2004), 326 N.R. 379 (SCC);2004 SCC 64

Ouellet (Bankrupt), Re (2004), 326 N.R. 379 (SCC)

MLB headnote and full text

[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] N.R. TBEd. OC.038

Banque Nationale du Canada (appellant) v. Samson Bélair Deloitte & Touche Inc., Syndic (respondent)

(29864; 2004 CSC 64; 2004 SCC 64)

Indexed As: Ouellet (Bankrupt), Re

Supreme Court of Canada

McLachlin, C.J.C., Major, Bastarache, Binnie and LeBel, JJ.

October 28, 2004.

Summary:

In 2001, the assignee of an instalment sales contract published its reserve of ownership after the purchaser went bankrupt and the property sold was taken over by the trustee in bankruptcy. The assignee filed a proof of claim, seeking possession of the property. The trustee rejected the claim. The assignee filed a motion in appeal.

The Quebec Superior Court, in a decision reported at [2002] Q.J. No. 410, dismissed the motion. The assignee appealed.

The Quebec Court of Appeal, in a decision reported at [2003] R.J.Q. 1434, dismissed the appeal. The assignee appealed.

The Supreme Court of Canada allowed the appeal.

Bankruptcy - Topic 430

Property of bankrupt - Particular prop­erty -Goods purchased where seller retains rights - [See Quebec Nominate Contracts - Topic 3478].

Practice - Topic 7029

Costs - Party and party costs - Entitlement to party and party costs - Successful party - Exceptions - Novel or important point - [See Quebec Procedure - Topic 7024].

Quebec Nominate Contracts - Topic 3478

Sale - Sale reserving title - Reservation of ownership - Publication of - In 2001, the as­signee of an instalment sales contract published its reserve of ownership after the purchaser went bankrupt and the property sold was taken over by the trustee - The assignee filed a proof of claim, seeking possession of the property - The trustee rejected the claim - The Supreme Court of Canada ruled that the claim should have been allowed - The assignee's reserve of ownership could be set up against the trustee in bankruptcy according to the law applicable at the relevant time - The prop­erty sold did not become part of the pur­chaser's patrimony - Only the purchaser's rights vested with the trustee - The court noted that amendments made to the Bank­ruptcy and Insolvency Act since the rel­e­vant time would have led to a different re­sult had they been applicable to this case.

Quebec Procedure - Topic 7024

Costs - Entitlement - Lawyer-client basis - The Supreme Court of Canada awarded costs on a solicitor-client basis to the un­successful respondent/trustee where the ap­pel­lant brought before the court a broad issue relating to the law of bankruptcy and insolvency that went "far beyond" the indi­vidual interests at stake in this case, es­pecially for the trustee - The trustee, through its counsel, played a helpful role in the conduct of the appeal and the analy­sis of the problems it raised - It would have been unfair to expect the respondent to bear the full burden of its participation in the case before the court - See para­graph 17.

Cases Noticed:

Lefebvre (Bankrupt), Re (2004), 326 N.R. 353; 2004 SCC 63, refd to. [para. 1].

Giffen (Bankrupt), Re, [1998] 1 S.C.R. 91; 222 N.R. 29; 101 B.C.A.C. 161; 164 W.A.C. 161, dist. [para. 5].

Lefebvre (Syndic de), [2003] R.J.Q. 819 (C.A.), refd to. [para. 6].

Tremblay (Syndic de), [2003] Q.J. No. 2305 (C.A.), refd to. [para. 6].

Commission de protection du territoire agricole (Qué.) v. Venne et al., [1989] 1 S.C.R. 880; 95 N.R. 335; 24 Q.A.C. 162, refd to. [para. 10].

Statutes Noticed:

Civil Code of Québec, S.Q. 1991, c. 64, art. 1745, art. 1749, art. 2941 [para. 7].

Counsel:

Reynald Auger and Lucien Godbout, for the appellant;

Alain Vachon and André J. Brochet, for the respondent.

Solicitors of Record:

Langlois Kronström Desjardins, Lévis, Quebec, for the appellant;

Brochet Dussault Larochelle, Sainte-Foy, Quebec, for the respondent.

This appeal was heard on April 20, 2004, by McLachlin, C.J.C., Major, Bastarache, Bin­nie and LeBel, JJ., of the Supreme Court of Canada.

The judgment of the Supreme Court was de­­livered in both official languages on Octo­ber 28, 2004, by LeBel, J.