The opening paragraph of the Reasons for Judgment of the Honourable Mr. Justice Myers in CFI Trust v. Royal Bank of Canada 2013 BCSC 1715 is one of the best in the history of Canadian law: 

To those who have seen the film Fargo,the factual underpinnings of this case might seem familiar; both involve vehicles that have been double-sold and financed by a dishonest car dealer. However, unless one views the law of secured transactions as akin to a black comedy, the similarity with Fargo ends there. This is a somewhat drier commercial dispute between two secured lenders of the dealership. And the only things that may have been chopped up are 242 motor vehicles, which have disappeared without a trace.

The decision goes beyond literary merit, to provide important new law that may protect financial institutions against claims based in knowing receipt and unjust enrichment. It also provides important new law in the world of personal property security, and in the interpretation of the Personal Property Security Act (“PPSA”) statutes across Canada. The case is essential reading for counsel assisting financial institutions and any business dealing in secured  transactions.


type Important New Decision Clarifies Claims Against Financial Institutions and Defences Under The Personal Property Security Act