The appellants leased motor vehicles to debtors who subsequently made assignments in bankruptcy.
The appellants filed proofs of claim to repossess the vehicles, but the respondent trustees disputed the claims because the leases had not been published in the register of personal and movable real rights within the time limit prescribed by art. 1852 of the Civil Code of Québec.
The Supreme Court of Canada held that the lessors' rights of ownership could be set up against the trustees despite the failure to publish.
The Court found that a trustee in bankruptcy is not a third person for the purposes of art. 1852 C.C.Q., and the leased vehicles never formed part of the debtors' patrimonies.
