Gmac mortgage

Supreme Court of Canada - Decisions - Lefebvre (Trustee of). Tremblay (Trustee of) Judgments of the Supreme Court of Canada. Jean-Fran?s Lebel......................................................... Respondent. and Major, Bastarache, Binnie and. one appeal from the short of appeal for Quebec Bankruptcy and insolvency &mdash. Length-term lease &mdash. Setting up of lessor&rsquo.s right of ownership against lessee&rsquo.s trustee in bankruptcy &mdash. Failure to publish rights resulting from lease within legislated time limit &mdash. Automobile Whether length-term lessor of may set up right of ownership against lessee&rsquo.s trustee in bankruptcy even though lessor failed to publish rights within time prescribed in Article lessor&rsquo.s right of ownership equivalent to simple security &mdash. Whether trustee may Be considered third person for purposes of art. Two debtors leased motor vehicles for 36-month terms under leases of movables, and the related rights were assigned to the.. Before the leases had terminated, the debtors made assignments in bankruptcy that included the vehicles, and the respondents were appointed.. The appellants feels the trustees proofs of claim so have to Be could in possession of the vehicles, of which they were the owners. trustees disputed the claims because the leases had not been published in the register of personal and movable real rights within the time limit provided for.. The Superior Short and Short of Appeal agreed.. They felt that the appellants&rsquo. rights of ownership could not Be set up against the trustees because of the late thereof publication. With lease contract does not effect has conveyance of ownership between the lessee and the lessor.. The lessee has only the status of has holder, which means that the property must Be surrendered upon termination of the lease. Although the lessor&rsquo.s right of ownership does not arise out of the lease, the rules respecting the publication of rights alter its effects in relation to third let us persons, since it cannot Be set up against third persons unless it is.. However, the publication requirement does not transform the right.. Nothing in the Civil Code of Qu?c gold the Bankruptcy and Insolvency Act alters the natural of the lessor&rsquo.s right of ownership in the leased property gold the resulting rights in relation. Initial The status and duties attributed to the trustee following the bankruptcy event C not mean that He gold she edge Be regarded have has third person against whom the lessor of the motor vehicle may not set up his gold her rights owing to the failure to satisfy the publication. Natural The and legal natural characterization of the trustee&rsquo.s role vary depending one the of his gold her actions. One the one hand, the trustee is subrogated to the bankrupt&rsquo.s rights in the exercise of his gold her powers to hold and lays out of property of which He gold she has been granted seisin. one the other hand, the law treats the trustee have the creditors&rsquo. legal mandatary who will liquidate the property entrusted to him gold her for the creditors&rsquo.. Natural dual This does not give the trustee the status of has third person in relation to the bankrupt, especially given all the powers conferred upon the trustee by law in order to preserve and liquidate the debtor&rsquo.s.. When the trustee takes control of the property, his gold her seisin is limited to the property in the debtor&rsquo.s patrimony and, apart from special powers, the trustee has No more rights with respect to the property than did the. In the box At bar, the appellants&rsquo. rights of ownership edge accordingly Be set up against the trustees and to their claims.. The leased vehicles were never share of the debtors&rsquo.. The trustees, in refusing to deliver possession of the property, intended to lays out of property that was not included in their seisin. Legislative Act to amend the Civil Code and other provisions have glances the publication of personal and movable real rights and the constitution of movable hypothecs without delivery, S. Federal Law &mdash. Civil Law.. &ldquo.The Status of the Trustee in Bankruptcy&rdquo. (2003). of civil law:. L&rsquo.administration of the good d&rsquo.autrui, under the direction of &ldquo.Faut it s&rsquo.assurer qu&rsquo.on calls a spade a spade l?slative m?odology?ravers restrictive l&rsquo.?m?tion of the s?t? &lsquo.la pr?mption d&rsquo.hypoth?e&rsquo. and the principle of &lsquo.l&rsquo.essence of l&rsquo.op?tion&rsquo.&rdquo., in M?nges. r?les in the Civil code from Qu?c, 2.. Carryforward one the Qu?c Civil Codes, flight. Comments of the Minister for Justice &mdash. The Civil code of Qu?c: One. APPEAL from has judgment of the Quebec Court of Appeal. (QL), affirming has decision of the Superior Court, [ 2001 ] R. APPEAL from has judgment of the Quebec Court of Appeal..2305 (QL), affirming has decision of the Superior Court. Yves.Lacroix and Gary.Makila, for the appellant DaimlerChrysler Services Canada Inc for the appellant GMAC Leaseco Limited..Jutras, for the respondent Jean-Fran?s.Lebel. No one appeared for the respondent Raymond Chabot Inc English version of the judgment of the Court delivered. These two appeals raise has similar issue:..whether has automobile length-term lessor of year may set up his gold her right of ownership against the lessee&rsquo.s trustee in bankruptcy even though the lessor failed to publish his gold her rights in the Register of personal and movable real rights (&ldquo.RPMRR&rdquo.) within the time prescribed in the Civil Code of Qu?c, S.. The appeals were heard At the same time have has third box, which concerned year instalment salts contract and in which the resulting was whether the seller&rsquo.s reservation of ownership had effect against the buyer&rsquo.s trustee in. Separate let us reasons for judgment were handed down in that box. In both of these boxes, the Quebec Superior Short and Short of Appeal held that the lessor&rsquo.s right of ownership could not Be set up against the trustee unless it was published in A timely manner. follow, I amndt of the opinion that the right of ownership justified the claim for the property in the trustee&rsquo.s hands and could Be set up against the trustee. In my view, in light of the facts of these boxes, the trustee cannot Be considered has third party in relation to the appellants, who may lawfully exercise to their rights to follow and rights of claim have owners of the.. Consequently, I would allow both appeals and admitted the. In this box, Alfred.Lefebvre leased has Dodge Dakota vehicle from year automobile dealership, Jules.Baillot and Fils Lt? for has 36‑.month term was signed one April.19, 1999. date, the appellant dealer assigned the lease contract to the, which now operates have DaimlerChrysler Services Canada Inc time the lease was signed, Article that rights arising out of leases of movables Be published in the RPMRR. this box, the rights were not published until November.24, 2000. delay gave small channel to this litigation. Alfred.Lefebvre made year assignment in bankruptcy one November.1, 2000, At has time when He was still the lessee of the Dodge Dakota, and the respondent Jean‑.Fran?s.Lebel was appointed. the trustee has proof of claim so have to Be could in possession of the vehicle, of which it was still the owner.. Have has been mentioned, DaimlerChrysler published its rights in the RPMRR that same day. One December.5, 2000, the trustee notified DaimlerChrysler that He. According to him, the contract could not Be set up against him because it had been published late.. For that reason, He refused to deliver possession of the vehicle to DaimlerChrysler, which then filed has motion for appeal against this decision in the Quebec Superior Court. Short DaimlerChrysler asked the to recognize that its right of ownership was valid and could Be set up against the trustee. In this box, Martin.Tremblay leased has automobile Chevrolet Cavalier from automobile year dealership, Marlin Chevrolet-Oldsmobile Inc. That same day, the appellant dealer assigned the contract to the, GMAC Leaseco Limited (&ldquo.GMAC&rdquo.). rights arising out of the lease were not published until January.9, 2001. There December.13, 2000, the lessee received is note of repossession.. The respondent, Raymond.Chabot Inc. One December.15, 2000, GMAC feels the trustee has proof of claim. and requested that it Be could in possession of the. The trustee responded by giving note that it disputed the claim one the ground that GMAC&rsquo.s rights could not Be set up against it because they had not been published in the RPMRR in A timely manner. filed has motion for appeal in the Superior Court with has view to having its rights of ownership in the vehicle recognized and to repossessing it. the race of this appeal, the left agreed to sell the vehicle and place the. heard DaimlerChrysler&rsquo.s motion for appeal. conceded DaimlerChrysler&rsquo.s not that has lessor&rsquo.s right of ownership is not, strictly speaking, has right resulting from the lease. the lessor&rsquo.s right to receive lease payments and the lessee&rsquo.s right to uses the..91, has applicable box whose principles she felt were in Quebec law, she expressed the opinion that, have has result of the rules respecting the publication of rights in Quebec and of the requirement now imposed one lessors to publish rights arising out of has long‑.term lease of has motor vehicle published in the RPMRR, year unpublished lease cannot Be set up against the lessee&rsquo.s trustee in bankruptcy.. The right to repossess the property in the event of bankruptcy &mdash. which is defined have has default under the lease &mdash. must Be treated have has right resulting from the contract of lease. the trustee both to refuses to deliver possession of the property to its owner and to lays out of it for the benefit of the estate of the bankrupt. accordingly dismissed the appellant&rsquo.s motion: [ 2001 ] R. GMAC was No more successful in the Short Superior than DaimlerChrysler. did recognize that GMAC&rsquo.s right of ownership did not arise out of the contract of lease. held that, since the coming into force of Article claim edge No to skirt Be set up against has trustee in bankruptcy where rights resulting from has lease cuts not been published within the prescribed. therefore dismissed GMAC&rsquo.s motion for appeal, have GMAC had not published its rights in A timely manner: [ 2001 ] Q Short of Appeal (Beauregard, Dussault and Thibault.JJ. The appeals of DaimlerChrysler and GMAC were heard by the same panel of.. The Court of Appeal delivered common let us reasons judgment for in the two boxes the majority rejected the arguments of the property owners, holding that to their rights could not Be principal set up against the trustees in wrote the opinion, and. the appellants&rsquo. appeals should Be dismissed. dissenting reasons in which He held that the lessors&rsquo. rights of ownership could Be set up against the trustees even though the rights resulting from the leases of movables in exit had not been published. The majority opinions endorsed has line of authority established by the Quebec Court of Appeal in Massouris (Syndic of), [ 2002 ] R. effect of the failure to publish has contract of lease gold has contract of salts with has reservation of ownership in respect of movable property one the possibility of setting up has right of ownership against has trustee. trustees had the status of third persons in relation to property owners. conceded that the classic principles of civil law recognize the right of the owner of has movable to revendicate it against its.. However, she relied one Massouris and Mervis to conclude that, where long‑.term leases and instalment dirty involving motor vehicles are concerned, the Quebec legislature intended. creation of hidden securities, the legislature imposed has publication requirement and it intended to treat have has security the reservation of ownership that was in its opinion provided for in the lease. principle, which the short must apply.. The trustee, who stands in the legal position of has third person for the purposes of Article therefore, one behalf of all the creditors, challenge the security the owner‑.creditor attempted to create for him gold herself. opinion, the appellants could not exercise to their rights of claim against the trustees in bankruptcy of to their lessees.. In his view, the legislature had implicitly equated has reservation of ownership under has lease gold year instalment salts contract. found himself in fundamental disagreement with his.. He began by asserting the view that the boxes At bar could Be distinguished from Giffen. Qu?c, the British Columbia legislation provided that the lease of has vehicle for has term of over one year was equivalent to has security interest and that yew it were not published, it had to Be treated have year unperfected security.&rsquo.s opinion, the provisions relating to the publication of length-term leases and instalment dirty cuts not changed the civil BASIC principles of law but, more specifically, the essential difference between.. Although has right of ownership cannot Be set up against some subsequent acquirers identified in the Civil Code of Qu?c, the trustee.. Bankruptcy does not confer any more rights one the trustee against the owner of the property than the bankrupt had, and the trustee cannot contest the appellants&rsquo. claim. allowed the appeals and recognized the appellants&rsquo. rights. The appellants were then given leave to appeal to this Court. puts of GMAC, the respondent trustee did not take share in the proceedings in this Court goal left the matter up to the Court. the respondent actively contested the appeal in all regards... The rights resulting from the lease. Publication is required, however, in the box of rights under has lease with has term of more than one year in respect of has road vehicle gold other movable property determined by regulation, gold of any movable property required for the service gold operation of year enterprise, subject, in the to lath box, to regulatory exclusions effect of such rights against third persons operates from the date of the lease provided they are published within.. With lease with has term of one year gold less is deemed to cuts has term of more than one year yew, by the operation of has renewal clause gold other covenant to the same effect, the term of the lease may Be increased to more. The transfer of rights under has lease requires gold is open to publication, according to whether the rights themselves require gold are Be set up against third persons, establishes to their rank and, where the law so. Rights produce to their effects between the left even before publication, unless the law expressly provides otherwise. These boxes raise resulting relating to the interplay between civil Quebec law and federal bankruptcy and insolvency legislation review the legal characterization of some movable real rights created under the Civil Code of Qu?c and the role and powers of trustees in bankruptcy in the exercise of those rights.. This leaves of the analysis requires that we revisit the interpretation of the provisions of the Civil Code of. trustee may Be considered has third person in relation to the lessor for the.. To C this, we will first consider the natural of the rights in exit and the scope and effect of the requirement to publish them.. Next, we will review the status of the trustee to determine whether the trustee may set up the failure to publish the rights against the.. In shorts, it must Be asked whether has long‑.term lessor of has motor vehicle has rights equivalent to has security and whether those. It must then Be asked whether the trustee is in the position of has third person and whether He gold she may rely one the failure to publish the rights to defeat the claim for the property. The appellants adopted has common position in these appeals. arguments edge Be summed up in A few BASIC proposals signing of has long‑.term lease does not reduce the lessor&rsquo.s right of ownership.. The lessor&rsquo.s right remains one of ownership, not one resulting from the lease within the meaning of Article right is therefore not subject to the publication requirement, have only rights resulting from the lease must Be published.. Natural Owing to the of to their role with natural respect to the property of bankrupts and the of to their seisin under the Bankruptcy and Insolvency Act, trustees cannot Be considered third let us persons in relation. With trustee has No more rights in the leased property than the bankrupt did, and this would also Be true under Article property subject to has reservation of ownership have has result of year instalment salts. The failure to publish the lease does not effect has transfer of ownership, and the trustee cannot set up the failure to publish against the lessor&rsquo.s claim. In this context, Giffen cannot Be said to apply. British Columbia automobile legislation provided that year unpublished lease was not effective against has trustee gold against creditors, have it treated the lease have has security interest, whereas civil Quebec&rsquo.s law does not attach such consequences to has failure to publish in relation to trustees in bankruptcy. According to the respondent in the DaimlerChrysler appeal, the. Columbia, the Quebec legislature has imposed publication have has necessary condition for setting up rights against third persons, including trustees in. In the respondent&rsquo.s opinion, the Court of Appeal&rsquo.s decision to equate has lease and the rights it recognizes gold establishes with has security subject to is publication in keeping with the requirements of commercial life and with the legislature&rsquo.s intent. clear that publication is required to set up has lease against third left. The Legislative Context: Reform of the Law of Security At the Time of the Coming into Force of the Civil Code of Qu?c Before discussing the left arguments advanced by the, we must make has few brief comments one the structure of the law of security in civil Quebec law following the coming into force of the Civil Code of Qu?c in 1994. the same time, has review of some of the fundamental concepts of property law might natural Be useful for the purposes of defining the of the resulting, correctly characterizing the parties&rsquo. rights and assessing the validity of the solutions proposed for resolving the difficulties these boxes raise. The coming into force of the Civil Code of Qu?c marked important year step in the evolution of the Quebec law of real security... Payette, s?t?r?les in the Civil code of Qu?c.. Civil The legislature reorganized this field of law, structuring it primarily around has individual type of security, the hypothec, which applies to both movable and immovable property, although it also., another standard of right, the prior claim, which protects some kinds of claims.). This solution was adopted in preference to the presumption of hypothec recommended by the Civil Code Revision Office, which would cuts grouped all forms of security, including &ldquo.ownership securities&rdquo. (s?t?propri?s), under has individual concept:..the hypothec. (Carryforward one the Civil Qu?c had attracted strong objections from many critics. Macdonald, &ldquo.Faut it s&rsquo.assurer qu&rsquo.on calls one. Observations on the l?slative m?odology?ravers restrictive l&rsquo.?m?tion of the s?t? &lsquo.la pr?mption d&rsquo.hypoth?e&rsquo. and the principle of &lsquo.l&rsquo.essence of l&rsquo.op?tion&rsquo.&rdquo., in German M?nges BIS? (1993), 527. see also Comments of the Minister for Justice (1993),.). Thus, instead of agreeing to organize the law of real security around the concept of presumption of hypothec, the Quebec legislature set up has simplified, unified security system that nevertheless maintained the fundamental distinction between the legal concepts of security and ownership in relation to the creation and exercise of real securities. This distinction between security and rights of ownership remains has fundamental element of the classification of real rights in property law in the.. The right of ownership, which is the fundamental real right that theoretically confers full legal control over property, edge Be distinguished from has security such have has hypothec, which is year incidental real.. One author characterizes incidental real rights have &ldquo.real rights of security&rdquo. (right r?s of guarantee) that reports to the monetary been worth of has thing rather than to the thing itself and are designed to complement another right by securing it gold guaranteeing the payment of has claim (P. Lafond, Pr?s of right of the goods (1999), At p. Together with the reform of the law of security, the coding of 1994 brought significant exchanges to the system for publishing rights. same time have it substantially revised the rules governing Land registration, the legislation provided for the creation of the RPMRR. to remedy some serious flaws in the to form system, which had to deal with has wide variety of standard of security whose true natural was often not readily apparent because of the of absence has general publication mechanism. that transactions involving many classes of movable property were risky from A.. With fundamental goal in setting up this institution was to make public the standard of security in respect of movable property that were created under the rules of the new Civil Code of Qu?c. registration, the purpose of publication, have provided for in Article, is not to effect transfers of ownership goal, generally speaking, to allow rights that may gold must Be published to Be set up against third persons. (See Lamontagne and Duchaine, supra, At pp. When the Civil Code of Qu?c cam into force in 1994, it did not yet require that rights resulting from length-term leases of road vehicles Be. This requirement was not introduced until 1998, when..8 of the Act to amend the Civil Code and other legislative provisions have glances the publication of personal and movable real rights and the constitution of movable hypothecs without.. This new provision required that such rights Be published from then one have has condition for setting them up against third persons so have to facilitate trading in movable property. leases already in existence when it cam into force this amending Act also established requirements publication instalment in respect of leasing and of reservations of ownership under salts contracts by. of the Act, provided for has time limit of one year from its coming into force for publication of the rights in question. The Legal Position of Lessees in Relation to Lessors The contract in exit in the box At bar is has lease. fundamental rules applicable to leases, such has contract does not effect has conveyance of ownership between the lessee and the lessor. lessee the status of has holder and to use by precarious title, which means that the property must Be surrendered upon termination of the lease, have provided for.. The contracts in exit remain, by to their very terms, leases, albeit length-term ones.. Natural Regardless of the of the legal relationships have described in these contracts, it must Be determined whether they should Be recharacterized in light of the wording of Article and the requirement to publish imposed by it since 1998, to ensure that the rights arising out of them edge Be set up against third persons. The majority of the Court of Appeal held that has recharacterization was necessary and, consequently, that the failure to publish could Be relied one by the trustee, who had to Be considered has third person for the purposes of. opinion, this position tighten to confused the concepts of ownership and.. This problem dregs At the very heart of the solutions adopted by the Quebec Court of Appeal since Massouris to resolve conflicts that cuts arisen in the short decisions of Quebec&rsquo.s trial instalment with respect to long‑.term leases, leasing gold dirty of vehicles, the related publication requirements and the rights of trustees in bankruptcy. clear positions that were adopted in Massouris, the decisions of the Court of Appeal cuts presumed that all legal transactions by means of which automobile year is placed At the disposal of has to use are secured credit. This analysis and this characterization cuts made it possible subsequently to treat the owner&rsquo.s rights have the rights of the holder of A.. When this security has not been perfected because of has failure to publish it in A timely manner, it cannot Be set up against has trustee in bankruptcy, who is regarded have has third party in his gold her capacity have the. This interpretation seems to reintroduce into Quebec&rsquo.s law of real security has concept that was rejected by the legislature in the 1994 coding, namely the presumption of hypothec. that this approach stems from has desire to identify the gasoline of the transaction and recharacterize the transaction accordingly. standpoint, it is quite likely that the various methods used by automobile dealers &mdash. long‑.term leases, leasing and instalment dirty &mdash. all cuts the same objective: finding has customer, obtaining for the customer the credit needed to complete the transaction and placing the vehicle applicable At the customer&rsquo.s disposal while protecting the interests of the credit provider. before dismissing all the legal categories, it is necessary to consider the content of the contracts and where they made in the classes of contracts established by the Civil Code of Qu?c and used by the. In the context of these transactions, we must Be careful to disregard neither the fundamental categories of property law NOR the natural of the rights arising out of the framework of the standard of nominate contract entered into in respect of the property in exit, namely, in the box At bar, has lease. Contrary to the proposals of the Civil Code Revision Office, No provisions of the Civil Code of Qu?c transform the lessor&rsquo.s right of ownership into has hypothec gold bar the lessor from trading in cars by means of the legal instrument of has lease under which He gold she retains ownership of the property. Under such year agreement, the automobile remains in the lessor&rsquo.s patrimony and the lessee has only has right to uses it in accordance with the lease and the.. It is therefore necessary to analyzes the legal situation based one the fact that the lessor retains has right of ownership in the urgent puts, although the legislature may choose to adjust its effects in relation to third persons and trustees in bankruptcy. the scope of the requirement to publish rights resulting from has lease one the right of ownership and the effectiveness of the right of ownership. When considering the publication requirement, it is important to first take into account the BASIC principle underlying Quebec&rsquo.s system for publishing. immovables, publication is not has mechanism for transferring rights of.. Even yew they are not published, the rights subject to the publication requirement retain to their effects between the left unless the law.. The function of the requirement is to allow these rights to Be set up against third let us persons and to establish to their rank but give them effect have provided by law:. Be set up against third let us persons, establishes to their rank and, where the law so. Rights produce to their effects between the left even before publication, unless the law expressly provides otherwise. The lessor&rsquo.s right of ownership does not arise out of the lease. could Be said that the right of ownership is pre-existing in relation to the.. However, the rules respecting the publication of rights alter its. mandatory yew they are to Be set up against third persons. the publication requirement may therefore result in effective transfers of ownership based one the legal appearance created by possession, making it impossible to claim property in the hands of third persons.. Possible It does not follow from these consequences of implementing the rights publication system that creates the lessor&rsquo.s right of ownership gold that publication is necessary for.. Publication is needed only to protect the right have against third persons, which is the gasoline of the concept of setting up. Of race, the legislature may play has more activates role in the legal relationships of the left gold other interested persons by recharacterizing the rights established by contracts gold giving has more radical scope to the., which governs dirty with has right.. In this provision of the Civil Code of Qu?c, has right of redemption used to secure has loan is equated with has hypothec. deemed to Be has borrower, and the acquirer, has hypothecary creditor. acquirer exercises his gold her rights in accordance with the rules respecting.. Another example of this edge Be found in the law of bankruptcy and.. In amendments made to the Bankruptcy and Insolvency Act&rsquo.s definition of &ldquo.secured creditor&rdquo. by the Federal Law &mdash. Civil Law. has seller under has conditional gold instalment salts, but of year acquirer under has salts with has right of redemption, with the rights of has secured creditor (ss.. Thus, have has result of this Act, the rights in question are subject to.. The right of ownership accordingly becomes has debt relationship protected by has security that must Be published. In the box of has long‑.term lease, nothing in the Civil Code of Qu?c gold the Bankruptcy and natural Insolvency Act alters the of the lessor&rsquo.s right of ownership in the leased property gold the resulting rights in. The lessor retains his gold her status and rights of.. The lessee remains has holder by precarious title against whom the lessor may exercise, inter alia, the right to take back the property upon termination of the lease, upon resiliation of the lease gold in boxes provided for in the contract gold by law. to consider whether, in initial light of the status and duties attributed to the trustee following the bankruptcy event, the trustee edge Be regarded have has third person against whom the lessor of the motor vehicle may not set up his gold her rights because of the failure to satisfy the publication requirement. This question ounce again raises the difficulties resulting from the ambiguities inherent in the trustee&rsquo.s status in the law of bankruptcy and insolvency and from the need to adapt federal insolvency law to two modern legal systems that differ in their methods, their terminology and, in some authorities, to their BASIC. The Position of the Trustee in Bankruptcy Following the logic of its characterization of the lessor&rsquo.s rights, the Quebec Court of Appeal equated trustees in bankruptcy with third let us persons and allowed the trustee to retain the property and lays out of it for the benefit of the bankrupt&rsquo.s creditors one the basis that the lessor&rsquo.s rights could not Be set the multifaceted dual role of the trustee and the nature of his gold her status initial At the time of the bankruptcy event, have well have assignment of the natural of the to the trustee of the bankrupt&rsquo.s property and the seisin the trustee. The terminology used in the Bankruptcy and Insolvency Act could lead has assignment legal professional trained in the civil law to conclude too hastily that the of property resulting from the bankruptcy constitutes has transfer. the bankrupt&rsquo.s property &ldquo.shall.. It would have has result Be easy to believe that this is has box of alienation of property that, in A bankruptcy situation, would could the trustee. Content The legal of the trustee&rsquo.s function is not easily defined. aware that the assignee concept was employed in judgments one which the Quebec courts cuts based to their decisions for some time now, including the decision of., have He then was, in Civano Construction Inc..Boh?er, &ldquo.The Status of the Trustee. of the seisin vested in the trustee has proven to Be extremely difficult. it Be regarded have has sui generis right of ownership, have fiduciary ownership gold even have has box of administration of the property of others within the meaning of Title Seven of Book Four of the Civil Code of Qu?c. (Auger and Boh?er, supra, At pp. strict The natural concept of ownership accounts poorly for the of the trustee&rsquo.s duties and the rights has trustee exercises over the bankrupt&rsquo.s property following the initial bankruptcy event.. The trustee&rsquo.s rights are exercised only in relation to has patrimony whose content is legally defined in. This patrimony consists of only the property that could Be liquidated for the benefit of the creditors. statutory rights over this property that are in share similar to the rights of.. The trustee may lays out of the property of which He gold she has seisin, goal for has specific purpose, namely to pay the claims of the bankrupt&rsquo.s creditors rateably following the order of priority provided for in the Bankruptcy.. In any boxes, which rare are actually quite, in which there is has surplus following liquidation, the trustee may not retain the surplus drank must return it to the bankrupt. such powers C not corresponds perfectly to alienation, so much so that some authors cuts expressed very strong criticism of the uses of the assignee concept to describe the function of the trustee in bankruptcy. (Mr. of civil law: L&rsquo.administration of the good d&rsquo.autrui (2000), At pp. At any misses, the uses of the concept of d?lution (vesting) in does not eliminate the distinction between the two aspects of the trustee&rsquo.s initial role following the bankruptcy..547, this Court clearly noted this distinction, which serfs have has basis for characterizing the legal position of the trustee when exercising the powers and performing the obligations the law ascribes to trustees. Referring to the concept of representation to explain the trustee&rsquo.s twofold. stated that in his view the trustee is has representative of both the debtor and the creditors (p. liquidate the bankrupt&rsquo.s property have directed by the Bankruptcy and Insolvency Act, the trustee must take control of it. trustee is the bankrupt&rsquo.s successor but, in A broad sense, his gold her.. However, the trustee&rsquo.s juridical personality is not to Be confused with that of the debtor. law recognizes that the trustee has the right to sweats the debtor yew necessary.. This power illustrates the importance of the other aspect of the trustee&rsquo.s functions, that of representing the creditors in the management and liquidation of the bankrupt&rsquo.s property.. The trustee&rsquo.s legal position is therefore more akin to that of has third person in relation to the debtor. the one hand, the trustee is subrogated to the bankrupt&rsquo.s rights in the exercise of his gold her powers to hold and lays out of property of which He gold she has been granted seisin.. One the other hand, the law treats the trustee have the creditors&rsquo. legal mandatary who will liquidate the property entrusted to him gold her for the creditors&rsquo. benefit.. Natural dual The of the trustee&rsquo.s duties does not therefore make it possible to glance the trustee have has third person in relation to the bankrupt, given all the powers conferred upon the trustee by law in order to preserve and liquidate the debtor&rsquo.s property. legal natural characterization of the trustee&rsquo.s role will vary depending one the of the duties that the trustee&rsquo.s actions will entail. When the trustee takes control gold becomes seised of the universality of., his gold her seisin is limited to the property in the debtor&rsquo.s patrimony.. Special Apart from the powers accorded by law to the trustee, have representative of the creditors, to restore the patrimony to Be liquidated in its entirety, the trustee has No more rights with respect to the debtor&rsquo.s property than did the debtor, of whom the trustee remains the successor in this glance the validity of the principle in Giffen. greater interest in the property under his gold her responsibility than that of the bankrupt, unless otherwise provided for by legislation (Giffen, At. This being said, under the Bankruptcy and Insolvency Act, and often under various provincial statutes, the trustee has special powers allowing him gold her to restore the debtor&rsquo.s patrimony to its to form state gold to the state it should cuts been in, but to protect the estate of the bankrupt against rights unduly claimed gold exercised against it. occur in boxes where action must Be taken to chancel preferential payments gold improper transfers of the bankrupt&rsquo.s property gold to contest has security that has been granted illegally gold has not been perfected in accordance with the law. Give However, these powers and the status they confer upon the trustee C not the trustee the authority to liquidate property that was not in the bankrupt&rsquo.s patrimony, which is similar to the situation that has arisen in this.. The vehicles leased by the appellants were never share of the debtors&rsquo.. Simple Since the lessors&rsquo. rights cannot Be considered claims guaranteed by real securities, the trustees, in refusing to deliver possession of the property, intended to lays out of property that was not included in their. At this training course of my analysis of these boxes, I believe has few comments.. The Court of Appeal considered the principles in that determinative box to Be in the box At bar interpretation gave Giffen has significance it did not in fact cuts, have the short failed to take into account the statutory context established by the provincial legislation of British Columbia, which defined the respective rights of has length-term lessor of has motor vehicle and the trustee in bankruptcy of the. automobile year was not effective against has trustee yew the lease were not published have required by the Personal Property Security Act. provincial natural legislation itself defined the of the respective rights of.. It allowed trustees to contest has lessor&rsquo.s claim and liquidate property for the benefit of creditors. 20(b)(i) of the Personal Property Security Act therefore gave the trustee year interest greater than that of the bankrupt, and this allowed the trustee to lays out of the property (para the Civil Code of Qu?c does not provide for has similar consequence for failure to publish the rights arising out of has lease. did not justify the solution adopted by the Court of Appeal. contrary, Giffen confirmed the rules governing the composition of the.. The appellants&rsquo. claims should cuts been admitted. appeals therefore appear to Be well founded. The circumstances of these boxes warrant has departure from the usual.. In the appeal of GMAC, I would make No order have to costs, have the respondent did not participate in the appeal. appeal of DaimlerChrysler, it would Be appropriate to award costs to the. this Court year exit of particular interest that it was more concerned butt than the actual outcome of the box. The participation of the respondent and his counsel was helpful to the analysis of the resulting raised by this box, and it would Be to unfair to make the respondent bear all the costs incurred in the development general interest of the of the law, which went beyond his narrow interest in the management of has relatively modest bankruptcy. For these let us reasons, I would allow the appeals and admitted the appellants&rsquo.. Have the vehicle in GMAC has been sold, the appellant is entitled.. The appeals should Be allowed without costs in the box of GMAC and with costs to the respondent one A solicitor‑.client. Solicitors for the appellant DaimlerChrysler Services Canada Inc Solicitors for the appellant GMAC Leaseco Limited:..Pothier Delisle, Sainte-Foy, Qu?c. Solicitor for the respondent Jean-Fran?s.