The applicant mortgagee took possession of a residential property under a power of sale.
Prior to possession, an air conditioner subject to a registered Notice of Security Interest by the respondent was removed by an unknown party.
The respondent refused to discharge its notice without payment from the sale proceeds, arguing a priority dispute under the Personal Property Security Act.
The court held that the PPSA establishes rights for fixtures that exist on properties, and since the fixture was removed, no priority dispute existed.
The respondent was ordered to bear the loss and discharge its interest.
