Saskatchewan Co-Operative Credit Society Ltd. v. Canada (Minister of Finance) and Canada Deposit Insurance Corp., (1990) 32 F.T.R. 91 (TD)

• Judge: Collier, J.
• Court: Federal Court (Canada)
• Case Date: January 24, 1990
• Jurisdiction: Canada (Federal)
• Citations: (1990), 32 F.T.R. 91 (TD)

Sask. Co-op Credit v. Can. (Ed. Note) (1990), 32 F.T.R. 91 (TD)

MLB Editor's Note

Saskatchewan Co-operative Credit Society Limited (plaintiff) v. The Honourable Michael Wilson, in his capacity as Minister of Finance of Canada and Canada Deposit Insurance Corporation (defendants)

(T-591-86)

Indexed As: Saskatchewan Co-Operative Credit Society Ltd. v. Canada (Minister of Finance) and Canada Deposit Insurance Corp.

Federal Court of Canada

Trial Division

Collier, J.

January 24, 1990.

Summary:

Saskatchewan Co-operative Credit Society was involved in a mortgage loan participation agreement whereby it advanced almost $3,000,000.00 to a mortgage investment corporation which in turn advanced the money to certain borrowers to construct an office building. The Canadian Commercial Bank was to administer the mortgage. The project experienced problems and Saskatchewan Co-op. refused to make further advances. The Canadian Commercial Bank, to salvage the project, took an assignment of Saskatchewan Co-op's interest in the project, agreed to repay the $3,000,000.00 and issued a promissory note. The Bank went into liquidation before the promissory note was honoured. Saskatchewan Co-op claimed relief under the Canada Deposit Insurance Corporation Act and the Financial Institutions Depositors Compensation Act. The Minister of Finance and the Canada Deposit Insurance Corporation (the defendants) refused the claim on the basis that Saskatchewan Co-op was not a "depositor" in the Canadian Commercial Bank as required by the legislation. Saskatchewan Co-op commenced an action against the defendants for a declaration that it was a depositor and for mandamus requiring the defendants to grant relief.

The Federal Court of Canada, Trial Division, for the reasons reported in Nova Scotia Savings & Loan Co. v. Canada (Minister of Finance) and Canada Deposit Insurance Corp., 32 F.T.R. 83, dismissed Saskatchewan Co-op's action.

Counsel:

P. Foley, Q.C., and R.C. Rutman, for the plaintiff;

E.A. Bowie, Q.C., and B.A. McIsaac, for the defendants.

Solicitors of Record:

Gauley & Co., Saskatoon, Saskatchewan, for the plaintiff;

John C. Tait, Q.C., Deputy Attorney General of Canada, Ottawa, Ontario, for the defendants.