Canada Deposit Insurance Corp. v. Canadian Commercial Bank, [1992] 2 SCR 3

Canada Deposit Insurance Corp. v. Canadian Commercial Bank, [1992] 2 S.C.R. 3

The Liquidator of Canadian Commercial Bank,

as represented by Special Counsel acting on

behalf of the general body of creditors of

Canadian Commercial Bank                                                             Appellant

v.

Bank of Canada           Respondent

Indexed as:  Canada Deposit Insurance Corp. v. Canadian Commercial Bank

File No.:  22459.

1992:  May 6.

Present:  Lamer C.J. and La Forest, L'Heureux‑Dubé, Gonthier, Cory, McLachlin and Iacobucci JJ.

on appeal from the court of appeal for alberta

                   Banks and banking operations ‑‑ Loans ‑‑ Interest ‑‑ Security agreements ‑‑ Interest received by liquidator on loans after liquidation falling within scope of security granted under agreements ‑‑ Appeal dismissed.

                   APPEAL from a judgment of the Alberta Court of Appeal (1991), 79 Alta. L.R. (2d) 294, [1991] 4 W.W.R. 418, 5 C.B.R. (3d) 312, reversing an order of the Court of Queen's Bench (1990), 73 Alta. L.R. (2d) 230, [1990] 4 W.W.R. 445, 105 A.R. 368, ruling that certain interest on loans did not fall within the scope of the security granted.  Appeal dismissed.

                   Susan C. Zimmerman and Charles P. Russell, for the Liquidator of Canadian Commercial Bank.

                   John A. Hustwick, Q.C., and David P. Jones, Q.C., as Special Counsel to the Liquidator.

                   Louis A. Desrochers, Q.C., and Robert M. Curtis, for the respondent.

//Lamer C.J.//

                   The judgment of the Court was delivered orally by

                   Lamer C.J. ‑‑ It will not be necessary to hear from you Mr. Desrochers.  The Court is ready to hand down judgment.  The judgment will be pronounced by Mr. Justice Iacobucci.

//Iacobucci J.//

                   Iacobucci J. ‑‑ We are all of the view that this appeal should be dismissed.  We are in substantial agreement with the reasons given by Stratton J.A. in the Alberta Court of Appeal that interest on the Canadian Commercial Bank loans in question come within the charging provisions of the security agreements.

                   Accordingly, the appeal is dismissed.  There shall be no order as to costs.

                   Judgment accordingly.

                   Solicitors for the Liquidator of Canadian Commercial Bank:  Cruickshank, Karvellas, Layton & Connauton, Edmonton.

                   Special Counsel to the Liquidator:  John A. Hustwick and David P. Jones, Edmonton.

                   Solicitors for the respondent:  McCuaig Desrochers, Edmonton.