The appellant, Paccar Leasing Company Ltd., appealed a motion judge's order that Royal Bank of Canada's perfected security interest in a debtor's property prevailed over Paccar's unperfected security interest in leased commercial trucks.
Paccar argued that its "true lease" meant it retained title, giving it priority.
The Court of Appeal dismissed the appeal, affirming that the 2007 amendments to the Personal Property Security Act (PPSA) prioritize perfected security interests over common law notions of title, even for true leases, if the lessor fails to perfect their interest.