Tracy v. Instaloans Financial Solutions Centres (B.C.) Ltd. et al.,

JurisdictionBritish Columbia
JudgeRowles, Hall, Saunders, Thackray and Lowry, JJ.A.
Neutral Citation2007 BCCA 481
Citation(2007), 246 B.C.A.C. 296 (CA),2007 BCCA 481,285 DLR (4th) 413,246 BCAC 296,[2007] BCJ No 2182 (QL),48 CPC (6th) 157,246 B.C.A.C. 296,(2007), 246 BCAC 296 (CA),285 D.L.R. (4th) 413,[2007] B.C.J. No 2182 (QL)
Date16 May 2007
CourtCourt of Appeal (British Columbia)

Tracy v. Instaloans Financial (2007), 246 B.C.A.C. 296 (CA);

    406 W.A.C. 296

MLB headnote and full text

Temp. Cite: [2007] B.C.A.C. TBEd. OC.028

Gracia Tracy (respondent/plaintiff) v. Instaloans Financial Solutions Centres (B.C.) Ltd., Instaloans Financial Solutions Centres (Kelowna) Ltd., Instaloans Financial Solutions Centres (Mgmt) Ltd., Instaloans Financial Solutions Centres (Vernon) Ltd., Tim Latimer, Marc Arcand, and 864556 Alberta Ltd. (appellants/defendants)

(CA034236)

Gracia Tracy (respondent/plaintiff) v. Instaloans Financial Solutions Centres (B.C.) Ltd., Instaloans Financial Solutions Centres (Vernon) Ltd., 903759 Alberta Ltd., 864556 Alberta Ltd., Tim Latimer and Marc Arcand (appellants/defendants)

(CA034235; 2007 BCCA 481)

Indexed As: Tracy v. Instaloans Financial Solutions Centres (B.C.) Ltd. et al.

British Columbia Court of Appeal

Rowles, Hall, Saunders, Thackray and Lowry, JJ.A.

October 5, 2007.

Summary:

In two class actions, the plaintiff sued the defendants (payday loan and title loan companies and their officers, directors and shareholders) asserting that fees, charges and interest paid to the companies on payday loan agreements and title loan agreements constituted interest at a criminal rate contrary to s. 347(1)(b) of the Criminal Code. The plaintiff applied for a Mareva injunction.

The British Columbia Supreme Court, in a decision reported at [2006] B.C.T.C. 1018, allowed the application. The court issued a worldwide Mareva injunction, an impound order requiring the defendants to place all funds from sale of the businesses in issue in a lawyer's trust account, and an order requiring the defendants to file affidavits listing all their assets. The Mareva injunction was given without an undertaking as to damages from the plaintiff. The defendants appealed.

The British Columbia Court of Appeal allowed the appeal to the extent of setting aside the order as against the individual defendants and the order impounding the proceeds from the sale of the businesses that were still in the control of the companies.

Injunctions - Topic 1612

Interlocutory or interim injunctions - General principles - Mareva injunctions - Preservation of property pending or after judgment - The British Columbia Court of Appeal discussed the general approach to Mareva injunctions in British Columbia - See paragraphs 28 to 47.

Injunctions - Topic 1612

Interlocutory or interim injunctions - General principles - Mareva injunctions - Preservation of property pending or after judgment - In two class actions, the plaintiff sued the defendants (payday loan and title loan companies and their officers, directors and shareholders) asserting that fees, charges and interest paid to the companies on loan agreements constituted interest at a criminal rate contrary to s. 347(1)(b) of the Criminal Code - The plaintiff applied for a Mareva injunction - The plaintiff relied on correspondence and affidavit evidence filed in another class action against the defendants in Ontario which stipulated that the defendants had little assets and the fact that the defendants had no assets in British Columbia - The chambers judge issued a worldwide Mareva injunction, an impound order requiring the defendants to place all funds from sale of the businesses in issue in a lawyer's trust account, and an order requiring the defendants to file affidavits listing all their assets - The plaintiff had established that she had an arguable case - The balance of convenience favoured the injunction - The Mareva injunction was given without an undertaking as to damages from the plaintiff - The defendants appealed - The British Columbia Court of Appeal allowed the appeal to the extent of setting aside the order as against the individual defendants and the order impounding the proceeds from the sale of the businesses that were still in the control of the companies - The chambers judge concluded that the circumstances created a real risk of dissipation of assets by the companies - Although the evidence was not strong, it was open to her to draw that conclusion - The case against the individual defendants was not as strong and an injunction should not have been issued against them See paragraphs 48 to 77.

Practice - Topic 3378

Interim proceedings - Preservation of property - Mareva injunction - [See both Injunctions - Topic 1612 ].

Cases Noticed:

Kilroy v. A OK Payday Loans Inc. (2007), 240 B.C.A.C. 151; 398 W.A.C. 151; 278 D.L.R.(4th) 193; 2007 BCCA 231, refd to. [para. 5].

MacKinnon v. National Money Mart Co. et al., [2005] B.C.T.C. 271; 2005 BCSC 271, refd to. [para. 8].

Mooney v. Orr, [1995] 3 W.W.R. 116; 100 B.C.L.R.(2d) 335 (S.C.), refd to. [para. 17].

Silver Standard Resources Inc. v. Joint Stock Co. Geolog et al. (1998), 115 B.C.A.C. 262; 189 W.A.C. 262; 168 D.L.R.(4th) 309; 59 B.C.L.R.(3d) 196 (C.A.), refd to. [para. 18].

Feigelman et al. v. Aetna Financial Services Ltd., Lax and Burke, [1985] 1 S.C.R. 2; 56 N.R. 241; 32 Man.R.(2d) 241; [1985] 2 W.W.R. 97; 29 B.L.R. 5; 55 C.B.R.(N.S.) 1; 15 D.L.R.(4th) 161; 4 C.P.R.(3d) 145, refd to. [para. 19].

642947 Ontario Ltd. v. Fleisher et al. (2001), 152 O.A.C. 313; 56 O.R.(3d) 417; 209 D.L.R.(4th) 182 (C.A.), refd to. [para. 20].

Mooney v. Orr (1994), 98 B.C.L.R.(2d) 318 (S.C.), refd to. [para. 21].

Derby & Co. v. Weldon (No. 2), [1989] 1 All E.R. 1002 (C.A.), refd to. [para. 21].

British Columbia (Attorney General) v. Wale, [1987] 2 W.W.R. 331; 9 B.C.L.R.(2d) 333 (C.A.), affd. [1991] 1 S.C.R. 62; 120 N.R. 208; [1991] 2 W.W.R. 568, refd to. [para. 30].

Metropolitan Stores (MTS) Ltd. v. Manitoba Food and Commercial Workers, Local 832 and Labour Board (Man.), [1987] 1 S.C.R. 110; 73 N.R. 341; 46 Man.R.(2d) 241; 18 C.P.C.(2d) 273; 38 D.L.R.(4th) 321; 25 Admin. L.R. 20; [1987] 3 W.W.R. 1, refd to. [para. 32].

RJR-MacDonald Inc. et Imperial Tobacco Ltd. v. Canada (Procureur général), [1994] 1 S.C.R. 311; 164 N.R. 1; 60 Q.A.C. 241; 111 D.L.R.(4th) 385, refd to. [para. 32].

Canadian Broadcasting Corp. v. CKPG Television Ltd. et al., [1992] 3 W.W.R. 219; 10 B.C.A.C. 211; 21 W.A.C. 211; 64 B.C.L.R.(2d) 96 (C.A.), refd to. [para. 33].

Lister & Co. v. Stubbs, [1886-1990] All E.R. 797 (C.A.), refd to. [para. 34].

Chitel v. Rothbart (1982), 39 O.R.(2d) 513 (C.A.), refd to. [para. 36].

Front Carriers Ltd. v. Atlantic & Orient Shipping Corp., [2006] F.T.R. Uned. 5; 2006 FC 18, refd to. [para. 42].

Third Chandris Shipping Corp. v. Unimarine S.A., [1979] 1 Q.B. 645; 2 Lloyd's Rep. 184 (C.A.), refd to. [para. 42].

Marine Atlantic Inc. v. Blyth et al. (1993), 168 N.R. 317; 113 D.L.R.(4th) 501 (F.C.A.), refd to. [para. 42].

Clark et al. v. Nucare plc (2006), 208 Man.R.(2d) 102; 383 W.A.C. 102; 274 D.L.R.(4th) 479; 2006 MBCA 101, refd to. [para. 43].

Grenzservice Speditions GmbH v. Jans, [1996] 4 W.W.R. 362; 15 B.C.L.R.(3d) 370; 129 D.L.R.(4th) 733; 64 C.P.R.(3d) 129; 1995 CarswellBC 1041 (S.C.), refd to. [para. 46].

Friends of the Oldman River Society v. Canada (Minister of Transport and Minister of Fisheries and Oceans), [1992] 1 S.C.R. 3; 132 N.R. 321, refd to. [para. 49].

Western Canadian Shopping Centres Inc. et al. v. Dutton et al., [2001] 2 S.C.R. 534; 272 N.R. 135; 286 A.R. 201; 253 W.A.C. 201; 2001 SCC 46, refd to. [para. 71].

Sekisui House Kabushiki Kaisha v. Nagashima (1982), 42 B.C.L.R. 1 (C.A.), refd to. [para. 74].

Counsel:

R. McLennan and G.S. Pun, for the appellants;

P.R. Bennett and M.W. Mounteer, for the respondent.

This appeal was heard on May 16, 2007, at Vancouver, B.C., by Rowles, Hall, Saunders, Thackray and Lowry, JJ.A., of the British Columbia Court of Appeal. The following judgment of the Court of Appeal was delivered by Saunders, J.A., on October 5, 2007.

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87 practice notes
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    ...dicta references. 22 In addition, the stringency of 19 Ibid at 37. 20 See Tracy v Instaloans Financial Solutions Centres (BC) Ltd , 2007 BCCA 481 at para 46 (Full Court), Saunders JA: In all cases, great caution is to be shown to avoid the mischief of litigious blackmail or bullying, and du......
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    ...94 Tracy v. Instaloans Financial Solutions Centres (B.C.) Ltd. (2007), 246 B.C.A.C. 296, 48 C.P.C. (6th) 157, 2007 BCCA 481 ............................. 238 Trafalgar Industries of Canada Ltd. v. Pharmax Ltd. (2003), 64 O.R. (3d) 288, [2003] O.T.C. 370, [2003] O.J. No. 1602 (S.C.J.) ............
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    • Irwin Books The Law of Equitable Remedies - Third edition
    • November 18, 2023
    ...7 OR (2d) 666, 56 DLR (3d) 330 (CA) ...................................... 307 Tracy v Instaloans Financial Solutions Centres (BC) Ltd, 2007 BCCA 481...............................................................................67, 165, 183 Trade Capital Finance Corp v Cook, 2017 ONSC 1857 ......
  • Interlocutory Injunctions: General Principles
    • Canada
    • Irwin Books The Law of Equitable Remedies - Third edition
    • November 18, 2023
    ..., 2021 ONSC 5866 at para 164. 175 Li , above note 173 at para 38, relying upon Tracy v Instaloans Financial Solutions Centres (BC) Ltd , 2007 BCCA 481 at para 72 [ Tracy ]. However, note that in Tracy , there was also another reason for not requiring the plaintif’s undertaking: the limited ......
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  • Asset Preservation Orders - Mareva Injunctions
    • Canada
    • Irwin Books The Law of Equitable Remedies - Third edition
    • November 18, 2023
    ...dicta references. 22 In addition, the stringency of 19 Ibid at 37. 20 See Tracy v Instaloans Financial Solutions Centres (BC) Ltd , 2007 BCCA 481 at para 46 (Full Court), Saunders JA: In all cases, great caution is to be shown to avoid the mischief of litigious blackmail or bullying, and du......
  • Table of Cases
    • Canada
    • Irwin Books Civil Litigation
    • June 16, 2010
    ...94 Tracy v. Instaloans Financial Solutions Centres (B.C.) Ltd. (2007), 246 B.C.A.C. 296, 48 C.P.C. (6th) 157, 2007 BCCA 481 ............................. 238 Trafalgar Industries of Canada Ltd. v. Pharmax Ltd. (2003), 64 O.R. (3d) 288, [2003] O.T.C. 370, [2003] O.J. No. 1602 (S.C.J.) ............
  • Table of cases
    • Canada
    • Irwin Books The Law of Equitable Remedies - Third edition
    • November 18, 2023
    ...7 OR (2d) 666, 56 DLR (3d) 330 (CA) ...................................... 307 Tracy v Instaloans Financial Solutions Centres (BC) Ltd, 2007 BCCA 481...............................................................................67, 165, 183 Trade Capital Finance Corp v Cook, 2017 ONSC 1857 ......
  • Interlocutory Injunctions: General Principles
    • Canada
    • Irwin Books The Law of Equitable Remedies - Third edition
    • November 18, 2023
    ..., 2021 ONSC 5866 at para 164. 175 Li , above note 173 at para 38, relying upon Tracy v Instaloans Financial Solutions Centres (BC) Ltd , 2007 BCCA 481 at para 72 [ Tracy ]. However, note that in Tracy , there was also another reason for not requiring the plaintif’s undertaking: the limited ......
  • Request a trial to view additional results

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