The respondent farmer defaulted on a loan from the appellant bank, which was secured by a swather under the federal Bank Act.
The bank seized the swather without giving the notice required by Saskatchewan's Limitation of Civil Rights Act.
The Supreme Court of Canada held that the federal Bank Act provisions creating and enforcing the security interest were intra vires Parliament's banking power.
The Court further held that the provincial legislation conflicted with the federal legislation, as the provincial Act required judicial approval for seizure while the federal Act granted an immediate right of seizure.
Under the doctrine of paramountcy, the provincial provisions were rendered inoperative in respect of Bank Act security interests.
