Parkwood Forest Products Ltd. v. Kehler, (1986) 75 A.R. 245 (CA)

• Judge: Lieberman, Haddad and Irving, JJ.A.
• Court: Court of Appeal (Alberta)
• Case Date: November 26, 1986
• Citations: (1986), 75 A.R. 245 (CA)

Parkwood Forest Products Ltd. v. Kehler (1986), 75 A.R. 245 (CA)

MLB headnote and full text

Parkwood Forest Products Ltd. v. Kehler

(Appeal No. 18358)

Indexed As: Parkwood Forest Products Ltd. v. Kehler

Alberta Court of Appeal

Lieberman, Haddad and Irving, JJ.A.

November 26, 1986.

Summary:

The issue in this appeal was whether an employee's claim for wrongful dismissal had priority over a floating charge debenture that crystallized after the wrongful dismissal, but before the employee obtained judgment.

The Alberta Court of Appeal held that the employee's claim had priority under s. 100(1) of the Employment Standards Act and s. 283 of the Companies Act.

Company Law - Topic 5432

Borrowing - Debentures - Priority - An employee claimed damages for wrongful dismissal before a receiver/manager was appointed under a debenture - The employee obtained judgment for $5,400 pay in lieu of notice, after the appointment - The Alberta Court of Appeal held that the employee's claim ranked prior to the debenture under s. 100(1) of the Employment Standards Act and s. 283 of the Companies Act - The court affirmed that the claim for pay in lieu of notice was an "entitlement due and owing the employee" under s. 100(1), and became such at the time of dismissal.

Master and Servant - Topic 8075

Dismissal without cause - Damages - Compensation in lieu of notice - Statutory priority - [see Company Law - Topic 5432 above].

Cases Noticed:

Alberta Opportunity Co. v. Planidin (1977), 4 A.R. 528; 2 Alta. L.R.(2d) 193 (Q.B.), appld. [para. 19].

Canadian Commercial Bank v. Bird Oil Equipment Ltd. (1985), 59 A.R. 342; 85 C.L.L.C. 14,029 (Q.B.), appld. [para. 20].

Statutes Noticed:

Employment Standards Act, R.S.A. 1980, c. E-10.1, sect. 1(1)(f), sect. 53(1), sect. 100(1) [para. 8].

Companies Act, R.S.A. 1980, c. C-20, sect. 120(1), sect. 120(2), sect. 283(1), sect. 283(2) [para. 9].

Counsel:

H.W. Veale, Q.C., and C.W. Neuman, for the appellant;

J.R. Scott, for the respondent.

This appeal was heard before Lieberman, Haddad and Irving, JJ.A., of the Alberta Court of Appeal.

On November 26, 1986, Irving, J.A., delivered the following judgment for the Court of Appeal.