The applicant auto dealership sought a declaration that it was the rightful owner of numerous classic vehicles that were allegedly stolen by a fraudster and sold to innocent purchasers.
The respondent purchasers argued they acquired good title under the Sale of Goods Act and Factors Act, and relied on vehicle permits issued by Service Ontario.
The court held that a vehicle permit under the Highway Traffic Act does not confer legal ownership superior to a prior valid title.
However, finding that material facts remained in dispute regarding whether the fraudster acted as a mercantile agent for the dealership, the court ordered a trial of an issue to hear viva voce evidence on the relationship between the parties.
