Smith (Bankrupt), Re, (1995) 148 N.S.R.(2d) 334 (SC)

• Judge: Nathanson, J.
• Court: Supreme Court of Nova Scotia (Canada)
• Case Date: November 14, 1995
• Jurisdiction: Nova Scotia
• Citations: (1995), 148 N.S.R.(2d) 334 (SC)

Smith (Bankrupt), Re (1995), 148 N.S.R.(2d) 334 (SC);

  429 A.P.R. 334

MLB headnote and full text

In The Matter of the Bankruptcy of Thomas George Smith

And In The Matter of the Bankruptcy of Leisa Yvonne Smith

Trans Canada Credit Corporation (applicant) v. Price Waterhouse Limited, Trustee in Bankruptcy of Thomas George Smith and Leisa Yvonne Smith (respondent)

(S.H. Nos. 18916; 18917)

Indexed As: Smith (Bankrupt), Re

Nova Scotia Supreme Court

In Bankruptcy

Nathanson, J.

December 1, 1995.

Summary:

Trans Canada Credit claimed security over certain assets belonging to two bankrupts which were described in a chattel mortgage. The Registrar in Bankruptcy disallowed Trans Canada's claim over certain assets. Trans Canada appealed.

The Nova Scotia Supreme Court, In Bank­ruptcy, dismissed the appeal, except with respect to one item.

Chattel Mortgages and Bills of Sale - Topic 1183

Validity - Essential elements - Descrip­tion of chattels - Sufficiency of - When the Smiths became bankrupt, Trans Canada claimed security over certain of the Smiths' assets under a chattel mortgage - Pursuant to the chattel mortgage, the Smiths granted a security interest over all home furnish­ings "now" located at R.R. #2, West River Station, N.S. - The chattel mortgage also included a list of items - The Nova Scotia Supreme Court, In Bankruptcy, held that the general descrip­tion of property in the chattel mortgage created two problems (i.e., uncertainty as to what property was located at the address when the mortgage was executed and uncertainty of the loca­tion of the premises because of the R.R. #2 address) - Further, the list of items included no model num­bers or serial num­bers.

Cases Noticed:

Price Waterhouse Ltd. v. Royal Trust Corp. of Canada (1978), 78 N.S.R.(2d) 4; 193 A.P.R. 4; 64 C.B.R.(N.S.) 2 (C.A.), refd to. [para. 7].

McCall v. Wolff (1885), 13 S.C.R. 130, refd to. [para. 9].

Hovey v. Whiting (1887), 14 S.C.R. 515, refd to. [para. 9].

Federal Savings Credit Union v. Alchorn and Dorey (1983), 61 N.S.R.(2d) 217; 133 A.P.R. 217 (T.D.), refd to. [para. 14].

Bentley, Re (1973), 1 O.R.(2d) 120 (Ont. S.C. Bktcy.), refd to. [para. 15].

Gergley v. MacIntosh, [1945] 3 W.W.R. 600 (Sask. C.A.), refd to. [para. 15].

Heritage Savings & Trust Co. v. Wallace and Wallace (1986), 77 A.R. 65 (Q.B.), dist. [para. 18].

Hamlyn (Bankrupt), Re (1993), 112 Nfld. & P.E.I.R. 8; 350 A.P.R. 8 (Nfld. T.D.), refd to. [para. 24].

Statutes Noticed:

Bills of Sale Act, R.S.N.S. 1989, c. 39, sect. 5 [para. 1].

Counsel:

John D. Stringer, for the applicant;

G.R.P. Moir, Q.C., for the respondent.

This case was heard in chambers on November 14, 1995, in Halifax, Nova Scotia, before Nathanson, J., of the Nova Scotia Supreme Court, In Bankruptcy, who delivered the following judgment on December 1, 1995.