Crosstown Motors Ltd. v. Motuz (2005), 377 A.R. 285 (PC)

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Temp. Cite: [2005] A.R. TBEd. AP.120

Crosstown Motors (1982) Ltd. (plaintiff) v. Marilyn Motuz and John Motuz (defendants)

(P0490306208; 2005 ABPC 82)

Indexed As: Crosstown Motors (1982) Ltd. v. Motuz

Alberta Provincial Court

Ingram, P.C.J.

March 29, 2005.

Summary:

The defendants entered into a conditional sale contract to purchase a vehicle from the plaintiff. The defendant Motuz signed a cheque for the cash down payment ($2,000). The cheque was returned NSF. The plaintiff and Motuz agreed on monthly payments to pay the down payment. Motuz defaulted on the payments and the vehicle was seized and disposed of. The plaintiff sued Motuz for the balance owing on the down payment.

The Alberta Provincial Court dismissed the action.

Conditional Sales – Topic 1803

Seller’s remedies – Repossession and sale -General – Effect of – General – [See
Conditional Sales – Topic 3355
].

Conditional Sales – Topic 3355

Seller’s remedies – Action for purchase price – General – Bars – The defendants entered into a conditional sale contract to purchase a vehicle from the plaintiff – The defendant Motuz signed a cheque for the cash down payment ($2,000) – The cheque was returned NSF – The plaintiff and Motuz agreed on monthly payments to pay the down payment – Motuz defaulted on the payments and the vehicle was seized and disposed of – The plaintiff sued Motuz for the balance owing on the down payment – The Alberta Provincial Court dismissed the action – Section 53(2) of the Law of Property Act provided that if a secured party elected to enforce its purchase-money interest and seized the goods, no action was maintainable for the purchase price of the goods or any part of it – The court held that s. 53(2) applied and accordingly, the plaintiff’s claim could not be maintained – See paragraphs 11 to 24.

Courts – Topic 17

Stare decisis – Authority of judicial decisions – General principles – Scope of stare decisis – The Alberta Provincial Court discussed the principle of stare decisis and held that “this court is bound to follow the law expressed by the appeal court, but is not necessarily bound to the same result. Only the actual issue addressed by the appeal court is binding, not propositions assumed by inference from the result, no matter how necessary to the result the propositions may logically be” – See paragraphs 25 to 29.

Cases Noticed:

Miller (Ed) Sales and Rentals Ltd. v. Kalan, [1971] 2 W.W.R. 321 (Alta. C.A.), consd. [para. 14].

Modern Motor Service v. Kaucher (1956), 19 W.W.R.(N.S.) 448 (Alta. Dist. Ct.), refd to. [para. 21].

Munder v. Baperezneak, [1938] 3 W.W.R. 733 (Sask. C.A.), refd to. [para. 24].

Guaranty Trust Co. of Canada v. Seller’s Oil Field Service Ltd. (1984), 55 A.R. 348 (Q.B.), refd to. [para. 26].

Woods Manufacturing Co. v. R., [1951] S.C.R. 504, refd to. [para. 28].

R. v. Crazybull (C.D.) (1993), 141 A.R. 69; 46 W.A.C. 69 (C.A.), refd to. [para. 28].

R. v. Hayden (P.A.) (1997), 200 A.R. 279; 146 W.A.C. 279 (C.A.), refd to. [para. 28].

R. v. Deur, [1944] S.C.R. 435, refd to. [para. 29].

Statutes Noticed:

Law of Property Act, R.S.A. 2000, c. L-7, sect. 53(2), sect. 53(4) [para. 12].

Authors and Works Noticed:

Cuming, Ronald C.C., and Wood, Roderick J., Alberta Personal Property Security Act Handbook (4th Ed. 1998), p. 516, fn. 4 [para. 14]; para. 61(2) [para. 14].

Halsbury’s Laws of England (2000) (4th Ed. – Reissue), para. 573 [para. 29].

Counsel:

Art Angielski, for the plaintiff;

John Motuz, for the defendants.

This action was heard on March 4, 2005, by Ingram, P.C.J., of the Alberta Provincial Court, who delivered the following reasons for judgment on March 29, 2005.

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Crosstown Motors (1982) Ltd. v. Motuz

(2005), 377 A.R. 285 (PC)

Court:
Provincial Court (Alberta)
Reading Time:
23 minutes
Judges:
Ingram 
[1]

Ingram, P.C.J.
: This is a claim for the balance owing on an NSF cheque given by the Defendant John Motuz to the Plaintiff as the “cash down payment” on the purchase of a car under a Conditional Sale Contract by both Defendants. The Defendant, John Motuz, says he was “mislead, lied to, and connived into” the sale. When the Defendant’s cheque was dishonoured, he agreed to make monthly payments to the Plaintiff for the down payment. His first (post-dated) cheque was honoured, the second was not. The seller’s interest in the Conditional Sale Contract was assigned at the time of the sale to Chrysler Financial Canada (a division of Daimler Chrysler Services Canada Inc.). Very shortly thereafter it, too, was dishonoured and the car was seized and disposed of by Chrysler Financial Canada. This case raises a number of issues:

(i) Whether a co-buyer is liable for an unpaid “cash” down payment in respect of which the seller accepted the other co-buyer’s cheque as payment;

(ii) Whether the Plaintiff’s sales practices offended the
Fair Trading Act
and, if so, whether the Defendants should be given any relief in this action on that account;

(iii) Whether a seller may maintain an action on a dishonoured cheque given as the down payment on the sale of consumer goods after the goods sold have been seized and disposed of by the seller’s assignee under a Conditional Sale Contract; and,

(iv) Whether a higher court decision as to the interpretation of a statute based on facts and legislation indistinguishable from the present case is binding authority only in respect of the principle expressly stated in the decision, or is it binding in respect of an interpretation which was not argued nor addressed in the decision but which, in the result, must necessarily have been applied.

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