Stolt Sea Farm Inc. v. Silver Harvest Ltd., (2006) 298 N.B.R.(2d) 218 (TD)

• Jurisdiction: New Brunswick
• Court: Court of Queen's Bench of New Brunswick (Canada)
• Judge: Glennie, J.
• Citation: (2006), 298 N.B.R.(2d) 218 (TD),2006 NBQB 187
• Date: 07 December 2005

Stolt Sea Farm v. Silver Harvest (2006), 298 N.B.R.(2d) 218 (TD);

    298 R.N.-B.(2e) 218; 775 A.P.R. 218

MLB headnote and full text

Sommaire et texte intégral

[English language version only]

[Version en langue anglaise seulement]

Temp. Cite: [2006] N.B.R.(2d) TBEd. JN.013

Renvoi temp.: [2006] N.B.R.(2d) TBEd. JN.013

Stolt Sea Farm Inc. (plaintiff) v. Silver Harvest Ltd. (defendant)

(S/C/450/05)

Corey Feed Mills Ltd., a body corporate (plaintiff) v. Silver Harvest Ltd., a body corporate (defendant)

(F/C/94/05)

(2006 NBQB 187; 2006 NBBR 187)

Indexed As: Stolt Sea Farm Inc. v. Silver Harvest Ltd.

Répertorié: Stolt Sea Farm Inc. v. Silver Harvest Ltd.

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Saint John

Glennie, J.

April 25, 2006.

Summary:

Résumé:

Stolt Sea Farm Inc. and Corey Feed Mills Ltd. obtained default judgments against Silver Harvest Ltd. which were registered in March and September 2005. Stolt and Corey moved for orders extending the time for registration of their judgments pursuant to s. 43(4) of the Land Titles Act. Silver moved for a declaration that Stolt's and Corey's judgments did not attach to a property (identified by Parcel Identifier 15007560) because an Agreement of Purchase and Sale predated the registration of the judgments.

The New Brunswick Court of Queen's Bench, Trial Division, dismissed Silver's motion. The court allowed Stolt's and Corey's motions and extended the registration for a period of five years.

Real Property - Topic 7974

Title - Registration of instruments, etc. - Priorities - Bona fide purchaser v. judgment creditor - Stolt Sea Farm Inc. and Corey Feed Mills Ltd. obtained default judgments against Silver Harvest Ltd. which were registered in March and September 2005 - Silver moved for a declaration that Stolt's and Corey's judgments did not attach to a property (identified by Parcel Identifier 15007560) because an Agreement of Purchase and Sale predated the registration of the judgments - Silver argued that it sold the property to Wolf in December 2004 and "by implication of the transaction", it became trustee of the property with no further beneficial interest in the property - The New Brunswick Court of Queen's Bench, Trial Division, dismissed the motion - The alleged transaction between Silver and Wolf was not a bona fide arms-length transaction - It was a flip to a corporate officer of Silver made at a time when Silver was insolvent or on the eve of insolvency - There was no proof of payment - There never existed an Agreement of Purchase and Sale or other document that created a trust relationship between Silver and Wolf - There were no facts warranting the court using its equitable jurisdiction to find that a trust was created - See paragraphs 24 to 67.

Real Property - Topic 8001

Title - Registration of instruments, etc. - Land titles system - General - The New Brunswick Court of Queen's Bench, Trial Division, stated that "the philosophy of a Land Titles system embodies three principles; namely the mirror principle where the register is a perfect mirror of the state of title; the curtain principle which holds that a purchaser need not investigate the history of past dealings with the land or search behind the title as depicted on the register and the insurance principle where the state guarantees the accuracy of the register and compensates any person who suffers loss as the result of an inaccuracy. These principles form the doctrine of indefeasibility of title and is the essence of the Land Titles system" - See paragraph 55.

Real Property - Topic 8008

Title - Registration of instruments, etc. - Land titles system - Bona fide purchaser - What constitutes - [See Real Property - Topic 7974 ].

Trusts - Topic 661

Creation of trust - Transactions not creating trusts - General - [See Real Property - Topic 7974 ].

Biens réels - Cote 7974

Titre - Enregistrement d'actes instrumentaires - Priorités - Entre un acheteur de bonne foi et un créancier judiciaire - [Voir Real Property - Topic 7974 ].

Biens réels - Cote 8001

Titre - Enregistrement d'actes instrumentaires - Système d'enregistrement foncier - Généralités - [Voir Real Property - Topic 8001 ].

Biens réels - Cote 8008

Titre - Enregistrement d'actes instrumentaires - Système d'enregistrement foncier - Acheteur de bonne foi - En quoi consiste -[Voir Real Property - Topic 8008 ].

Fiducies - Cote 661

Création d'une fiducie - Opérations ne créant pas de fiducies - Généralités - [Voir Trusts - Topic 661 ].

Cases Noticed:

Robinson v. Moffatt (1916), 37 O.L.R. 52 (C.A.), refd to. [para. 38].

Zimmerman, Re, [1956] O.W.N. 745 (H.C.), refd to. [para. 39].

Clem et al. v. Hants-Kings Business Development Centre Ltd. (2004), 224 N.S.R.(2d) 265; 708 A.P.R. 265; 2004 CarswellNS 240 (S.C.), dist. [para. 43].

Durrani v. Augier et al., [2000] O.T.C. 607 (Sup. Ct.), refd to. [para. 54].

CitiFinancial Canada East Corp. v. Hurley (Bankrupt) (2006), 302 N.B.R.(2d) 284; 784 A.P.R. 284; 2005 CarswellNB 808 (T.D.), refd to. [para. 55].

CitiFinancial Canada East Corp. v. Morrow (Bankrupt) (2006), 302 N.B.R.(2d) 240; 784 A.P.R. 240; 2005 CarswellNB 809 (T.D.), refd to. [para. 55].

Vancouver City Savings Credit Union v. Hu et al., [2005] B.C.T.C. 712; 31 R.P.R.(4th) 309 (S.C.), refd to. [para. 56].

Monteith et al. v. Hayden et al. (1987), 81 N.B.R.(2d) 273; 205 A.P.R. 273 (C.A.), refd to. [para. 60].

Counsel:

Timothy M. Hopkins, for the plaintiff, Stolt Sea Farm Inc.;

Michael J. Connors, for the plaintiff, Corey Feed Mills Ltd.;

Deirdre L. Wade, Q.C., for the defendant, Silver Harvest Ltd.

These motions were heard on December 7, 2005, by Glennie, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Saint John, who delivered the following oral decision on April 25, 2006.