Court File and Parties

Citation: General Motors Acceptance Corporation of Canada Limited v. Alex Williamson Motor Sales Limited, 2010 ONCA 90

Date: 2010-02-02

Docket: C50928

Court of Appeal for Ontario

Before: Laskin, Armstrong and Juriansz JJ.A.

Between:

General Motors Acceptance Corporation of Canada Limited Plaintiff (Respondent)

And

Alex Williamson Motor Sales Limited Defendant (Appellant)

Counsel: Douglas Turner, Q.C., for the appellant Edward M. Hyer, for the respondent

Heard and released orally: January 25, 2010

On appeal from the order of Justice Peter A. Cumming of the Superior Court of Justice, dated July 28, 2009.

Endorsement

[1] Alex Williamson Motor Sales Limited (“Williamson”) appeals from the decision of the Commercial Court motions judge that the security interest of General Motors Acceptance Corporation of Canada Limited (“GMAC”) in a motor vehicle and its proceeds took priority over its interest.

[2] Williamson had sold the Vehicle to Bruce Bissell Buick Pontiac Limited (“Bissell”), which had financed the purchase with GMAC, its inventory financier. Bissell made an assignment in bankruptcy and its cheque to Williamson was returned by Williamson’s bank. Williamson subsequently took possession of the Vehicle.

[3] Williamson recognizes that when it sold the vehicle to Bissell it became part of Bissell’s inventory and that GMAC's security agreements covering Bissell’s inventory attached to the vehicle. Williamson argues, however, that GMAC asked GM to take the vehicle back and give it a credit. Williamson submits that this constituted a disposition under s. 63 of the Personal Property Security Act, R.S.O. 1990, c. P.10 that had the effect of discharging GMACs security interest as provided by s. 63(9).

[4] While the motion judge did not refer to the portion of the affidavit evidence that Williamson now relies on, it is clear that he found that GMAC had not disposed of the collateral. On the record before us, we are unable to interfere with the motion judge’s view of the facts. Consequently, the appeal fails and is dismissed with costs fixed at $3,500, inclusive of disbursements and GST.

“John Laskin J.A.”

“Robert P. Armstrong J.A.”

“R.G. Juriansz J.A.”