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ARTICLE · 28 SEPTEMBER 2017

Agricultural Law Netletter - Thursday, September 7, 2017 - Issue 379

Miller Thomson
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The Bank of Montreal ("BMO") brought an application for the appointment of a receiver for a beef farm owned and operated by Linden Leas Limited ("Linden Leas").

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Issues added on the 7th and 21st of every month.

HIGHLIGHTS

  • A Justice of the Nova Scotia Supreme Court has dismissed a farmer's application to strike out a bank's application to appoint a receiver, on the grounds that the bank failed to comply with the 15 day notice provisions under the Farm Debt Mediation Act. The Justice did so firstly because there was a factual issue with respect to whether the notice was delivered in time to allow 15 days' notice, and secondly because 5 years had passed since the alleged defect in service had occurred during which many steps had been taken, including a Farm Debt Mediation, and a forbearance agreement pursuant to which the bank had agreed to forbear taking legal proceedings if certain payments were made by the farmer. The Justice indicated that waiver and estoppel may overcome the effects of insufficient notice and prevent farmers from arguing that proceedings are "null and void" as a result of non-compliance with FDMA notice

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