XDG Ltd. v. 1099606 Ontario Ltd. et al., [2002] O.T.C. 1062 (SC)
Judge | D.J. Gordon, J. |
Court | Superior Court of Justice of Ontario (Canada) |
Case Date | December 23, 2002 |
Jurisdiction | Ontario |
Citations | [2002] O.T.C. 1062 (SC) |
XDG Ltd. v. 1099606 Ont. Ltd., [2002] O.T.C. 1062 (SC)
MLB headnote and full text
Temp. Cite: [2003] O.T.C. TBEd. FE.122
XDG Limited (plaintiffs) v. 1099606 Ontario Limited and General Electric Capital Canada Inc. (defendants)
(Court File No. 1424/99)
Indexed As: XDG Ltd. v. 1099606 Ontario Ltd. et al.
Court of Ontario
Superior Court of Justice
D.J. Gordon, J.
December 23, 2002 and February 27, 2003.
Summary:
This headnote contains no summary.
Company Law - Topic 5288
Borrowing - Prohibited borrowing transactions - Where company insolvent - See paragraphs 8 to 59.
Company Law - Topic 5289
Borrowing - Prohibited borrowing transactions - Bona fide lender without notice - See paragraphs 48 to 59.
Fraud and Misrepresentation - Topic 1454
Fraudulent conveyances and preferences - Impeachable conveyances and preferences under modern statutes - Preference to defeat or prefer creditors - See paragraphs 74 to 80.
Fraud and Misrepresentation - Topic 1455
Fraudulent conveyances and preferences - Impeachable conveyances and preferences under modern statutes - Conveyance to defeat or prefer creditors - See paragraphs 61 to 73.
Mechanics' Liens - Topic 6301
Priorities - Between lienholder and mortgagees - General - See paragraphs 81 to 96.
Mortgages - Topic 981
Priorities - Mechanics' liens (or privileges) - General - See paragraphs 81 to 96.
Cases Noticed:
Clarke v. Technical Marketing Associates Ltd. Estate (1992), 8 O.R.(3d) 734 (Gen. Div.), refd to. [para. 45].
Petro-Canada v. Cojef Ltd. and Mid-City Concrete Ltd. (1992), 83 Man.R.(2d) 52; 36 W.A.C. 52 (C.A.), refd to. [para. 53].
Upper Mapleview v. Stolpe Homes (Veterans Drive Inc.) (1979), 36 B.L.R.(2d) 31 (Ont. Gen. Div.), refd to. [para. 54].
Assaad v. Economical Mutual Insurance Group et al. (2002), 160 O.A.C. 396 (C.A.), refd to. [para. 56].
Home Savings & Loan Corp. v. Matthews (1995), 49 R.P.R.(2d) 79 (Ont. Gen. Div.), refd to. [para. 63].
Solomon v. Solomon (1977), 16 O.R.(2d) 769 (H.C.), refd to. [para. 64].
Prodigy Graphics Group Inc. et al. v. Fitz-Andrews et al., [2000] O.T.C. 237 (Sup. Ct.), refd to. [para. 64].
Petrone v. Jones (1995), 33 C.B.R.(3d) 17 (Ont. Gen. Div.), refd to. [para. 67].
Courtesy Chevrolet Oldsmobile Ltd. v. Dhaliwal (1987), 67 C.B.R.(N.S.) 72 (Ont. H.C.), refd to. [para. 71].
Kozan Furniture (Yorkton) Ltd. Estate v. Countrywide Factors Ltd. (1977), 14 N.R. 91; 23 C.B.R.(N.S.) 97 (S.C.C.), refd to. [para. 75].
Robinson v. Countrywide Factors Ltd. - see Kozan Furniture (Yorkton) Ltd. Estate v. Countrywide Factors Ltd.
St. Lawrence Cement Inc. v. 794561 Ontario Inc. et al. (1993), 14 O.R.(3d) 781 (Gen. Div.), affd. (1995), 77 O.A.C. 276; 21 O.R.(3d) 771 (C.A.), refd to. [para. 82].
Boehmers v. 794561 Ontario Inc. - see St. Lawrence Cement Inc. v. 794561 Ontario Inc. et al.
697470 Ontario Ltd. v. Presidential Developments Ltd. et al. (1989), 35 O.A.C. 294; 69 O.R.(2d) 334 (Div. Ct.), refd to. [para. 83].
Moffatt & Powell Ltd. v. 682901 Ontario Ltd. (1992), Kirsh's C.L.C.F. 61.3 (Ont. Gen. Div.), refd to. [para. 91].
561861 Ontario Ltd. v. 1085043 Ontario Inc. et al. (1998), 66 O.T.C. 305; Kirsh's C.L.C.F. 78.50 (Gen. Div.), refd to. [para. 94].
Marsil Mechanical v. A Reissing-Reissing Enterprise Ltd. (1996), Kirsh's C.L.C.F. 78.40 (Ont. Gen. Div.), refd to. [para. 95].
Statutes Noticed:
Assignments and Preferences Act, R.S.O. 1990, c. A-33, sect. 4(1) [para. 74]; sect. 5(5)(d) [para. 78].
Business Corporations Act, R.S.O. 1990, c. B-16, sect. 20(1) [para. 34]; sect. 20(3) [para. 48].
Construction Lien Act, R.S.O. 1990, c. C-30, sect. 15 [para. 91]; sect. 78(1) [para. 81]; sect. 78(5), sect. 78(6) [para. 93].
Fraudulent Conveyances Act, R.S.O. 1990, c. F-29, sect. 2 [para. 61]; sect. 3 [para. 70].
Authors and Works Noticed:
Gray, Wayne D., Corporate Guarantees (1999), Law Society of Upper Canada, Continuing Legal Education Lectures, generally [para. 36]; p. 3-39 [para. 57].
Counsel:
I. Duncan and M. Van Bodegom, for the plaintiff, XDG Ltd.;
A. Speciale, for the plaintiff, William Green Roofing Ltd.;
L. Ricchetti, for the defendant, General Electric Capital Canada Inc.;
No one appearing for the defendant, 1099606 Ontario Ltd.
This action was heard on July 9-12, 2002, before D.J. Gordon, J., of the Ontario Superior Court, who released the following decision on December 23, 2002 and the following endorsement on February 27, 2003.
Please note: The following judgment has not been edited.
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