The applicants sought an order under s. 56 of the Personal Property Security Act to discharge a financing statement registered by the respondents asserting a security interest in the applicants’ personal property.
The registration was based on purported unilateral “fee schedules” and invoices claiming millions of dollars for alleged intimidation and unauthorized use of a name.
The court found no security agreement existed and concluded the PPSA registration was filed without colour of right as part of a pseudolegal “OPCA” style scheme.
The court ordered the discharge of the registration and awarded statutory damages of $500 under s. 56(4).
Substantial indemnity costs were ordered and the directing mind of the corporate respondent was held jointly liable with the corporation.
