Regal Feeds Ltd. v. Waldner and Niverville Credit Union Ltd., (1985) 34 Man.R.(2d) 299 (QB)

• Judge: Smith, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: May 03, 1985
• Jurisdiction: Manitoba
• Citations: (1985), 34 Man.R.(2d) 299 (QB)

Regal Feeds v. Waldner (1985), 34 Man.R.(2d) 299 (QB)

MLB headnote and full text

Regal Feeds Ltd. v. Waldner and Niverville Credit Union Ltd.

(Suit No. 85-01-01145)

Indexed As: Regal Feeds Ltd. v. Waldner and Niverville Credit Union Ltd.

Manitoba Court of Queen's Bench

Smith, J.

May 3, 1985.

Summary:

Regal Feeds Ltd. was the holder of a security interest against a farmer's pigs, for which a financing statement was registered under the Personal Property Security Act on November 1, 1982. The respondents Waldner and Niverville Credit Union also held security interests against the farmer's pigs, whose original financing statements were registered prior to Regal's. Regal applied for a declaration that its security interest had priority to those of Waldner and Niverville Credit Union.

The Manitoba Court of Queen's Bench allowed the application.

Compare also the case of F.B.D.B. v. Registrar of Personal Property Security (1984), 3 O.A.C. 241 (Ont. Div. Ct.).

Personal Property - Topic 6024

Security interests - Financing statement - Contents of - Under the Personal Property Security Act, a financing statement registered to perfect a security agreement shall set out, inter alia, the classification of the collateral as either "inventory", "equipment", consumer goods", "book debts" or "other" - A creditor under the heading "General Collateral Description" indicated that the collateral was "all hogs, pigs ..." - The Manitoba Court of Queen's Bench held that the additional placing of a "X" beside the "other" category was in such case merely a technical error, misleading no one and curable under s. 4(2) of the Act - See paragraphs 19 to 21.

Personal Property - Topic 6086

Security interests - Registration - Validity of - Curing of errors - A creditor filed a financing statement using a debtor's "nickname" or abbreviated first name rather than his full legal name - The Manitoba Court of Queen's Bench held that this material error could not be cured under ss. 4(2) or 47(5) of the Personal Property Security Act - See paragraphs 14 to 17.

Personal Property - Topic 6090

Security interests - Registration - Validity of - Material misdescriptions - A creditor filed a financing statement using the debtor's "nickname" or abbreviated first name rather than his full legal name - The Manitoba Court of Queen's Bench held that therefore the financing statement did not comply with the Personal Property Security Act and Regulations and thus the creditor's security was not perfected and the creditor lost priority - See paragraphs 7 to 13.

Personal Property - Topic 6092

Security interests - Registration - Validity of - Sufficiency of description - After-acquired property - A financing statement purported to secure an interest in "all (the debtor's) hogs, pigs, sows, boars, weanlings and feeder hogs" - No schedule was attached indicating any reference to after-acquired hogs - The original security document clearly referred to after-acquired property - The Manitoba Court of Queen's Bench held that the creditor's interest in after-acquired property was perfected upon registration of the financing statement - That statement need not refer to "after-acquired" property and only gives notice to a searcher to obtain details from the security document itself - See paragraphs 22 to 32.

Personal Property - Topic 6109

Security interests - Registration - Renewal - Extension of time for - Effect of - The Manitoba Court of Queen's Bench held that s. 63 of the Manitoba Personal Property Security Act clearly provides that when an extension of time is given to renew registration of a financing statement, the renewal does not ensure priority over earlier registered security documents - See paragraphs 4 to 5.

Cases Noticed:

Re Elliott: Touche Ross Ltd. v. Bank of Nova Scotia (1984), 3 P.P.S.A.C. 296, consd. [para. 12].

Re Gibbons: Touche Ross Ltd. v. Toronto Dominion Bank (1984), 3 O.A.C. 291; 4 P.P.S.A.C. 54, consd. [para. 12].

Re: Wilson Trading as Tim's Small Engine Repairs (1984), 4 P.P.S.A.C. 69, consd. [para. 12].

Re Hickson c.o.b. Total Printing and Reproduction Services; Clarkson Co. Ltd. v. Reichhold Ltd., [1984] 3 W.W.R. 164; 26 Man.R.(2d) 5; 2 P.P.S.A.C. 275, folld. [para. 13].

Fotti v. 777 Management Incorporated (1981), 9 Man.R.(2d) 142; 2 P.P.S.A.C. 32, refd to. [para. 16].

In Re Laverty (1982), 3 P.P.S.A.C. 1, dist. [para. 21].

Touche Ross Ltd. v. Royal Bank of Canada (1984), 31 Sask.R. 131; 3 P.P.S.A.C. 280, agreed with, [para. 29].

Statutes Noticed:

Personal Property Security Act, S.M. 1973, c. 5; C.C.S.M., c. P-35, sect. 4(2) [paras. 14, 17, 19]; sect. 12(1), sect. 12(2) [para. 23]; sect. 13 [paras. 23, 27]; sect. 21 [para. 27]; sect. 23(1) [para. 18]; sect. 47(1) [para. 8]; sect. 47(1)(c) [para. 30]; sect. 47(5) [paras. 10, 17]; sect. 63 [para. 4]; sect. 63(3) [para. 5].

Personal Property Security Act Regulations, Regulation 208/80, sect. 18 [para. 9].

Authors and Works Noticed:

McLaren, Secured Transactions in Personal Property in Canada, vol. 1, p. 21-15 [para. 28].

Counsel:

Marcel D. Jodoin and John E. Neufeld, for the applicant;

Michael Radcliffe, for the respondent Sarah Waldner;

Robert C. Arthur, for the respondent Niverville Credit Union Limited.

This application was heard before Smith, J., of the Manitoba Court of Queen's Bench, whose decision was delivered on May 3, 1985.