Terra Power Tractor Co. v. Chapman, (1977) 5 A.R. 286 (DC)

• Judge: McFadyen, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: March 16, 1977
• Citations: (1977), 5 A.R. 286 (DC)

Terra Power Tractor Co. v. Chapman (1977), 5 A.R. 286 (DC)

MLB headnote and full text

Terra Power Tractor Co. Ltd. v. Chapman

Indexed As: Terra Power Tractor Co. v. Chapman

Alberta District Court

Judicial District of Grande Prairie

McFadyen, J.

March 16, 1977.

Summary:

This headnote contains no summary.

Conditional Sales - Topic 1005

Rights of third parties - Loss of title to subsequent purchasers - Resale by dealer or trader in the ordinary course of business - A tractor distributor sold a farm tractor pursuant to a registered conditional sales agreement to a dealer in agricultural equipment - The dealer sold the farm tractor to a farmer who took delivery and paid for the tractor without making a search for liens - The dealer defaulted under the conditional sales contract and the distributor seized the tractor from the farmer - The Alberta District Court held that the farmer obtained title to the tractor free from encumbrances - The Alberta District Court stated that the registration of the conditional sales agreement did not constitute notice to the farmer so as to deprive the farmer of the benefits conferred on him by the common law and the Factors Act respecting purchases made in the ordinary course of business.

Cases Noticed:

Dedrick v. Ashdown (1888), 15 S.C.R. 227, folld. [para. 13].

Brett v, Foorsen (1907), 7 W.L.R. 13, folld. [para. 13].

McRorie v. Seward (1910), 13 W.W.R. 522, refd to. [para. 14].

Delanoy v. Downey, [1912] 2 W.W.R. 599, folld. [para. 15].

Bosik v. Raufman (1963), 45 W.W.R. 316, refd to. [para. 16].

Kozak v. Ford Motor Co. and JD's Used Cars Ltd., [1971] 3 W.W.R. 1, refd to. [para. 18].

Hunter v. Trans Canada Finance Corporation, [1930] 1 W.W.R. 801, folld. [para. 19].

Green Belt Holdings Ltd. v. Holowaychuk (1967), 60 W.W.R. 332, refd to. [para. 32].

Commercial Equipment Rentals Ltd. v. Canadian Fairbanks Morse Company Ltd. (1963), 42 W.W.R.(N.S.) 177, refd to. [para. 33].

Security Trust Company Limited v. Stewart, [1918] 1 W.W.R. 419, refd to. [para. 35].

Commercial Credit Co. of Can. Ltd. v. Fulton Brothers (1922), 65 D.L.R. 699, folld. [para. 37].

Bender v. National Acceptance Corp., [1929] 1 D.L.R. 222, folld. [para. 39].

Vowles v. Island Finances Limited, [1940] 3 D.L.R. 177, folld. [para. 40].

Traders Finance Corporation Limited v. Dawson Implements Limited (1958), 26 W.W.R. 561, folld. [para. 41].

Statutes Noticed:

Conditional Sales Act, R.S.A. 1970, c. 61.

Factors Act, R.S.A. 1970, c. 132, sect. 3(1), sect. 3(4) [para. 29]; sect. 10 [para. 50]; sect. 14 [para. 21].

Counsel:

Kim Shipley and Robert A. Graesser, for the applicant;

A.S. Romanchuk, for the respondent.

The judgment of the Alberta District Court was delivered by McFADYEN, J., at Edmonton, Alberta on March 16, 1977.