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A movable hypothec with delivery on a non-negotiable claim is valid under the Civil Code of Québec.
The annuitants invested in an RRSP with Desjardins Trust, which deposited the funds in the Caisse and issued non-negotiable deposit certificates.
The annuitants later borrowed from the Caisse, granting a movable hypothec with delivery on the RRSP funds as security, and handing over the certificates.
The annuitants then made an assignment in bankruptcy.
The trustee rejected the Caisse's claim as a secured creditor, arguing that a non-negotiable instrument could not be the object of a pledge.
The Supreme Court of Canada held that a movable hypothec with delivery on a claim not represented by a negotiable instrument is valid under the Civil Code of Québec if the debtor transfers effective control of the claim to the creditor, the title is handed over, and the hypothec can be set up against the debtor of the claim.
The appeal was allowed.
Prosecutorial immunity was lifted for malicious prosecution in an exceptional case.
The appellant brought a civil claim for damages arising from an acquitted first degree murder prosecution, alleging malicious prosecution by the provincial Attorney General.
The majority held that the exceptional threshold for lifting prosecutorial immunity was met because the prosecution lacked reasonable and probable cause and was motivated by an improper purpose arising from the mixing of public prosecutorial functions with private interests tied to related defamation litigation.
The Court found the identification evidence flagrantly inadequate, the surreptitiously recorded conversation likely inadmissible and devoid of probative value, and the prosecutorial conduct inconsistent with the Crown’s role as minister of justice.
The appeal was allowed, the Court of Appeal judgment was set aside, and the trial judgments on liability and damages were restored.
