HIGHLIGHTS
The Supreme Court of Canada has overturned the decision of the Saskatchewan Court of Appeal in Lemare Lake Logging v. 3L Cattle Co. The Saskatchewan Court of Appeal had held that the provisions of s. 243 of the Bankruptcy and Insolvency Act, which allows secured creditors to apply to the Court on 10 days' notice to appoint a receiver, are paramount and prevail over the provisions of the Saskatchewan Farm Security Act, which, among other things, requires a 150 day notice period and leave of the Court before an action can be commenced with respect to a mortgage. The Supreme Court of Canada confirmed the application of the provisions of the Saskatchewan Farm Security Act to receiverships, and held that there was insufficient evidence to establish that s. 243 of the Bankruptcy and Insolvency Act was intended to circumvent procedural and substantial requirements under provincial laws which protect farmers, or to supplant provincial legislation with overarching federal legislation in order to give secured creditors timely access to receivership remedies. (Saskatchewan (Attorney General) v. Lemare Lake Logging Ltd., CALN/2015-027, [2015] S.C.J. No. 53, Supreme Court of Canada)
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