The appellant's mandatary took possession of the debtor's immovable property before the debtor made an assignment in bankruptcy.
The property was sold, and the respondent registered a privilege under provincial law.
The Court of Appeal applied provincial law to rank the respondent ahead of the appellant.
The Supreme Court of Canada allowed the appeal, holding that once bankruptcy occurs, the federal Bankruptcy Act determines the priority of claims, even if the secured creditor realizes its security outside the bankruptcy proceedings.
