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Publishers lacked priority over bank for accounts receivable as distributor was not required to segregate funds.
The appellants, various book publishers, appealed a decision determining that they did not have priority over the Bank of Nova Scotia regarding accounts receivable collected by the distributor, General Distribution Services Inc. (GDS).
The publishers argued that because they retained title to the books, they had priority.
The Court of Appeal dismissed the appeal, finding that the arrangement between the publishers and GDS did not require the segregation of funds, allowing GDS to mingle the proceeds with its own money.
Consequently, the relationship was one of debtor and creditor, not trustee and beneficiary, and the publishers did not hold a priority interest.
Corporate officer dismissal set aside on negligent misrepresentation pleadings.
The appellant challenged an order dismissing an action against individual corporate officers.
The court held that the pleadings against one respondent, if proven, could establish the tort of negligent misrepresentation, and found that the motions judge failed to apply or misapplied appellate authority rejecting a principled immunity for corporate officers acting in the interests of the corporation.
The appeal was therefore allowed in part, with the dismissal set aside as against one individual respondent.
Costs of the appeal and below were awarded to the appellant.
