Able Automotive Ltd v Cameron-Okolita Inc, 2010 SKQB 34
Able brought a motion to appeal the bankruptcy Registrar’s decision that Able was a secured creditor for a certain amount, but disallowing its claim for certain costs, including insurance, a new engine for the vehicle, and storage charges, legal fees and costs.
The Court upheld the Registrar’s findings, but noted that in considering section 59(2) of the Saskatchewan PPSA, regarding a secured party’s “reasonable expenses of …holding…the collateral” during enforcement, that “expenses” was not broad enough to cover this situation where Able had kept the vehicle at its own premises pending its sale. The Court held:
In my view, the term “expenses” is not wide enough to cover the secured party’s unilaterally imposed charges as this could not be classified as an “expense” in any ordinary understanding or definition of that term. [para. 5]