The respondent defaulted on a loan secured by a hypothec on three lots.
Before the sheriff's sale, the respondent waived its right to a discharge under the Civil Code of Lower Canada in exchange for the appellants agreeing to sell the lots in two stages.
After the first sale of two lots, the appellants bought the third lot at a second sale.
The respondent sued for a discharge based on the first sale's value and sought to vacate the second sale.
The Supreme Court of Canada held that while the discharge provisions are of public order and the premature waiver was null, the respondent failed to follow the proper procedure to claim its discharge before the second sale occurred.
The Court also found no grounds to vacate the second sale, and the issue was res judicata.
The appeal was allowed and the respondent's action dismissed.
