Plaza Equities Ltd. and Winnipeg Mortgage Holdings Ltd. v. Bank of Nova Scotia, (1978) 11 A.R. 480 (TD)

• Judge: McDonald, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: March 10, 1978
• Citations: (1978), 11 A.R. 480 (TD);1978 CanLII 804 (AB QB);84 DLR (3d) 609;[1978] 3 WWR 385;11 AR 480

Plaza Equities Ltd. v. BNS (1978), 11 A.R. 480 (TD)

MLB headnote and full text

Plaza Equities Ltd. and Winnipeg Mortgage Holdings Ltd. v. Bank of Nova Scotia

Indexed As: Plaza Equities Ltd. and Winnipeg Mortgage Holdings Ltd. v. Bank of Nova Scotia

Alberta Supreme Court

Trial Division

Judicial District of Calgary

McDonald, J.

March 10, 1978.

Summary:

This case arose out of a mortgagee's claim to security in mortgaged property. The owner of the property bought a mobile home under a conditional sales agreement. The mobile home was built and sold in two parts, each resting on a steel frame with axles, running gear and wheels with a hitch for towing on the highway. The home was installed on a full concrete foundation and an extension was added to the rear. Subsequently, the owner mortgaged the property, including the home. The conditional sales agreement was registered by the conditional seller at the Motor Vehicle Branch instead of at the Central Registry for conditional sales agreements on the assumption that the mobile home was a trailer under s. 2(b) of the Conditional Sales Act, R.S.A. 1970, c. 61. The owner defaulted under both the conditional sales agreement and the mortgage. The mortgagee brought an action to establish its right to security in the property.

The Alberta Supreme Court, Trial Division, allowed the mortgagee's action. The Trial Division held that the mobile home was not a trailer within s. 2(b) of the Conditional Sales Act and was therefore incorrectly registered at the Motor Vehicle Branch - see paragraphs 15 to 61. The Trial Division held that, where the mortgagee was a purchaser or mortgagee of the mobile home in good faith for valuable consideration within s. 3(1)(a) of the Conditional Sales Act, the conditional seller's rights under the unregistered collective agreement could not be set up against it - see paragraphs 132 to 138.

Conditional Sales - Topic 343

Statutory requirements - Registration - General principles - Effect of registration - Conditional Sales Act, R.S.A. 1970, c. 61, s. 3(1) - The Alberta Supreme Court, Trial Division, held that the Conditional Sales Act is not a general registry system with all third persons being able to rely on the title disclosed by the register - The Trial Division held that the Act established a system designed for the protection of the limited groups set out in section 3(1) of the Act and that it was only against these limited groups that the conditional vendor is prevented from setting up his common law title - See paragraphs 97 to 120.

Conditional Sales - Topic 524

Statutory requirements - Registration - Particular goods - Trailer - What constitutes - Conditional Sales Act, R.S.A. 1970, c. 61, s. 2(b) - A purchaser bought a large mobile home under a conditional sales agreement - The mobile home was built and sold in two parts, each resting on a steel frame with axles, running gear and wheels with a hitch for towing on the highway - The purchaser installed the home on a full concrete foundation and an extension was added to the rear - The Alberta Supreme Court, Trial Division, held that the home was not a "trailer" within the meaning of the definition of "itinerant machine" in s. 2(b) of the Conditional Sales Act - See paragraphs 15 to 61.

Conditional Sales - Topic 1010

Rights of third parties - Loss of title to subsequent purchasers - Bona fide purchaser or mortgagee for valuable consideration - What constitutes - Condition Sales Act, R.S.A. 1970, c. 61, s. 3(1)(a) - A purchaser bought a mobile home under a conditional sales agreement, installed it on his land and obtained a mortgage loan on the premises - The conditional sales agreement was not registered - The Alberta Supreme Court, Trial Division, held that the mortgagee was a bona fide purchaser or mortgagee for valuable consideration within s. 3(1)(a) and was entitled to its security in the home - See paragraphs 132 to 138.

Mortgages - Topic 1405

Property mortgaged - Fixtures - The Alberta Supreme Court, Trial Division, held that a mortgagee is entitled to his security in a fixture, notwithstanding that the fixture is attached to the mortgaged property after the placing of the mortgage - The Trial Division held that no express language in a mortgage is necessary to pass title to fixtures - See paragraphs 62 to 67.

Real Property - Topic 4203

Fixtures - Considerations in determining what constitutes a fixture - The Alberta Supreme Court, Trial Division, set out the considerations in determining whether an object is a fixture - The Trial Division held that a mobile home on a full concrete foundation was a fixture - See paragraphs 68 to 86.

Statutes - Topic 516

Interpretation - General principles - Ordinary meaning of words - The Alberta Supreme Court, Trial Division, referred to the ordinary meaning of the word "trailer" in determining whether a mobile home was a trailer, but concluded that there was no definite meaning commonly given to "trailer" which would either include or exclude mobile homes - See paragraphs 52 to 55.

Statutes - Topic 2425

Interpretation - Interpretation of words and phrases - Reference to dictionaries - The Alberta Supreme Court, Trial Division, referred to dictionaries in construing a term in a statute - See paragraph 20.

Statutes - Topic 2601

Interpretation - Interpretation of words and phrases - Interpretation by context - The Alberta Supreme Court, Trial Division, held that the context in which a word in a statute is used is an important aid in determining the interpretation of the word - See paragraph 50.

Statutes - Topic 6708

Operation and effect - Commencement - Retrospective enactments - Substantive matters defined - At the time an action was started s. 16 of the Conditional Sales Act, R.S.A. 1970, c. 61, provided that goods which have become fixtures remain the property of a conditional seller - Two years after the action was started s. 16 was amended to refer to goods which become fixtures "after registration of the agreement" - The Alberta Supreme Court, Trial Division, held that the amendment was not retroactively applicable to the action, because it was substantive and not procedural in nature - See paragraphs 92 to 96.

Cases Noticed:

R. v. Peters (1886), 16 Q.B.D. 635, appld. [para. 20].

Camden (Marquis) v. I.R.C., [1914] 1 K.B. 641, appld. [para. 20].

Bruens v. Mamczasz (1964), 46 W.W.R.(N.S.) 626 (S.C.C.), consd. [para. 24].

Re Loncar, [1976] 5 W.W.R. 187 (B.C.S.C.), reversed [1976] 6 W.W.R. 574 (B.C.C.A.), consd. [para. 25].

Larsen v. MacDonald (1976), 1 B.C.L.R. 64, consd. [para. 28].

R. v. Vulcan Asphalt & Supply Co. Ltd., [1964] 1 C.C.C. 198 (Ont. C.A.), consd. [para. 29].

Maki v. Corcoran et al., [1953] O.W.N. 843 (Ont.H.C.), consd. [para. 31].

Township of Moore v. Farr et al. (1978), 19 N.R. 341, dist. [para. 32].

Horn v. Dobson, [1933] S.C. (J.) 1 (Scotland, Court of Judiciary), consd. [para. 33].

Garner v. Burr et al., [1951] 1 K.B. 31 (K.B.D.), consd. [para. 35].

London County Council v. Pearce, [1892] 2 Q.B. 109 (Q.B.D.), consd. [para. 36].

Village of Harriman v. Kabinoff (1963), 243 N.Y.S.(2d) 210 (N.Y.S.C.), consd. [para. 41].

Manley v. Draper (1963), 254 N.Y.S. (2d) 739 (N.Y.S.C.), consd. [para. 42].

Morin v. Zoning Board of Review of the Town of Lincoln et al. (1967), 232 A.(2d) 393 (R.I.S.C.), consd. [para. 43].

City of Astoria v. Nothwang (1960), 351 P.(2d) 688, consd. [para. 44].

Lynch v. Page (1940), 57 W.N. (N.S.W.) 161; 28 Australian Digest 1135 (N.S.W.S.C.), consd. [para. 45].

Hay Shire Council v. Crease and Another, [1973] 1 N.S.W.L.R. 545 (N.S.W.C.A.), consd. [para. 46].

Bourne v. Norwich Crematorium Ltd., [1967] 2 All E.R. 576 (Ch.D.), appld. [para. 50].

R. v. Owens, [1950] 2 W.W.R. 1016 (Alta.S.C.A.D.), appld. [para. 52].

Hobson v. Gorringe, [1897] 1 Ch. 182, appld. [para. 62].

Southport and West Lancashire Banking Co. v. Thompson (1887), 37 Ch.D. 64 (C.A.), appld. [para. 64].

Re Kitchen (1880), 16 Ch.D. 226 (C.A.), appld. [para. 65].

Reynolds v. Ashby & Son, [1904] A.C. 466 (H.L.), appld. [para. 66].

La Salle Recreations Ltd. v. Canadian Camdex Investments Ltd., Chester, Sigurdson and White Spot No. 12 Ltd. (1969), 68 W.W.R.(N.S.) 339, appld. [para. 68]; refd to. [para. 78].

Haggert v. Brampton (Town) (1897), 28 S.C.R. 174 (S.C.C.), appld. [para. 68].

Bing Kee and Lung Chung v. Yick Chong (1910), 43 S.C.R. 334 (S.C.C.), appld. [paras. 69, 72]; dist. [para. 74].

Holland v. Hodgson (1872), L.R. 7 C.P. 328, appld. [para. 69].

Diamond Neon (Manufacturing) Ltd. v. Toronto-Dominion Realty Co. Ltd., [1976] 4 W.W.R. 664 (B.C.C.A.), consd. [para. 71].

Scott Fruit Co. Ltd. v. Wilkins and Reece, [1920] 3 W.W.R. 155 (Alta.S.C.), dist. [para. 74].

Russell v. Nesbitt et al. (1896), 3 Terr.L.R. 437, dist. [para. 74].

Hamilton v. Chisholm (1909), 11 W.L.R. 134; 2 Sask.L.R. 227, dist. [para. 74].

Morrison v. Thomas, [1922] 1 W.W.R. 215 (Sask.C.A.), dist. [para. 74].

Cunningham v. Sigfusson and Sigfusson, [1930] 2 W.W.R. 189 (Sask.C.A.), dist. [para. 74].

Billing v. Pill, [1954] 1 Q.B. 70 (Q.B.D.Div.Ct.), dist. [para. 74].

Beaver Lumber Co. Ltd. v. Saskatchewan General Trusts Corp. Ltd., Re Soloman Estate, [1922] 3 W.W.R. 1061 (Sask.C.A.), folld. [para. 75].

Dixon v. MacKay (1903), 21 Man. R. 762 (Manitoba, Full Court), folld. [para. 75].

Travis-Barker et al. v. Reed et al., [1923] 2 W.W.R. 451 (S.C.C.), folld. [para. 75].

Agricultural Development Bd. v. DeLaval Co. Ltd. et al., [1925] 4 D.L.R. 981 (Ont.S.C.), not folld. [para. 105]; folld. [para. 75].

Re Patterson; Rose v. Canadian Acceptance Corp. Ltd. (1969), 12 C.B.R.(N.S.) 251 (Ont.S.C.), folld. [para. 75].

Wellsmore and Others v. Ratford and Others (1973), 23 F.L.R. 295 (Supreme Court of Australian Capital Territory), folld. [para. 75].

Doran v. Willard, 14 N.B.R. 358, consd. [para. 76].

Atlin Air Ltd. and McHeffey v. Milikovic and Gleason, [1976] 4 W.W.R. 329 (B.C.S.C.), dist. [para. 77].

Clifford et al. v. Epsten et al. (1951), 234 P.(2d) 687 (District Court of Appeal, Fourth District, California), dist. [para. 79].

Gomez v. Dykes (1961), 359 P.(2d) 760 (Ariz.S.C.), dist. [para. 80].

Re Performance Drilling Co. Ltd. (1967), 61 W.W.R.(N.S.) 247 (Alta. S.C.), appld. [para. 95].

Harrison, Trustee, etc. v. Nepisiguit Lumber Co. Ltd. in Liquidation et al. (1911), 41 N.B.R. 1 (N.B.S.C.), not folld. [para. 103].

Liquid Carbonic Co. Ltd. v. Rountree, [1924] 1 D.L.R. 1092 (Ont.S.C.A.D.), not folld. [paras. 106, 123].

Murphy Wallbed Co. of Detroit v. Levin (1925), 57 O.L.R. 105 (Ont.S.C.A.D.), not folld. [para. 107].

Hoppe v. Manners (1931), 66 U.L.R. 587 (Ont.S.C.A.D.), dist. [para. 108].

Greater Winnipeg Gas Co. v. Petersen and Osborne Investments Ltd. (1968), 65 W.W.R.(N.S.) 500 (Man. C.A.), dist. [para. 108].

Kozak v. Ford Motor Credit Co. of Canada Ltd. and J. & D.'s Used Cars Ltd., [1971] 3 W.W.R. 1 (Sask.C.A.), not folld. [para. 110].

Terra Power Tractor Co. Ltd. v. Chapman (1977), 5 A.R. 286; 2 Alta.L.R.(2d) 247 (Alta.D.C.), folld. [para. 112].

Dalgleish v. I.A.C. Ltd. et al. (1977), 5 A.R. 28; 2 Alta.L.R.(2d) 261 (Alta.S.C.), folld. [para. 113].

Klimove v. General Motors Acceptance Corp. and Dubuc, [1955] 2 D.L.R. 215 (Alta.S.C.A.D.), appld. [para. 117].

Hannah v. Pearlman and Selchen, [1954] 1 D.L.R. 282, folld. [para. 118].

Knight Sugar Co. Ltd. v. Beatty Brothers Ltd. [1923] 3 W.W.R. 1120 (Alta.S.C.), not folld. [para. 123].

Helmer v. Grain, [1925] 2 W.W.R. 509 (Sask.C.A.), not folld. [para. 123].

Canadian Propane Consolidated Ltd. v. Percy Hill and Adeline Hill (1965), 52 W.W.R.(N.S.) 184 (Alta.S.C.), folld. [para. 129].

Burtex Industries Ltd. (in bankruptcy); Elleker v. Farmers and Merchants Trust Co. Ltd. et al. (1964), 47 W.W.R.(N.S.) 96 (Alta.S.C.), appld. [para. 70]; folld. [para. 130].

Montreal Trust Co. v. Goldaire Rentals Ltd. et al., [1967] 1 O.R. 40 (Ont.H.C., Local Master), dist. [para. 134].

Swanson v. D. Ackland & Son Ltd. and Traders Finance Corp. Ltd. (1963), 42 W.W.R.(N.S.) 50 (Alta.D.C.), consd. [para. 140].

Security Trust Co. Ltd. v. Stewart, [1918] 1 W.W.R. 709, appld. [para. 141].

Statutes Noticed:

Conditional Sales Act, R.S.A. 1970, c. 61, sect. 2, sect. 4, sect. 5(1), sect. 6(1) [para. 14]; sect. 3(1), sect. 16 [paras. 14, 88].

Land Titles Act, R.S.A. 1970, c. 198, sect. 106, sect. 107 [para. 114].

Authors and Works Noticed:

Falconbridge on Mortgages (4th Ed. 1977), p. 20 [para. 136].

Funk and Wagnall's Standard College Dictionary (Can. Ed. 1963) [para. 21].

Maxwell on the Interpretation of Statutes (12th Ed.), pp. 215, 220-221 [para. 94].

Webster's Third New International Dictionary (1964) [para. 22].

Counsel:

B.D. Kinney, for the plaintiffs;

N. Conrad, for the defendant.

This case was heard at Calgary, Alberta, before McDONALD, J., of the Alberta Supreme Court, Trial Division, Judicial District of Calgary.

On March 10, 1978, McDONALD, J., delivered the following judgment: