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ARTICLE · 16 FEBRUARY 2014

Hog Feed Suppliers Assert Priority Over Producer's Secured Creditors -- Developing Law In Manitoba

Miller Thomson
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The Manitoba Court of Appeal will consider an interesting insolvency case involving hog feed suppliers who claim of priority for the cost of feed over Farm Credit Canada and Bank of Montreal, the hog producer’s secured creditors.

CanadaReal Estate and Construction
Jennifer Spencer
Jennifer Spencer
Brian Kaliel K.C.
Brian Kaliel K.C.
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The Manitoba Court of Appeal will consider an interesting insolvency case involving hog feed suppliers who claim of priority for the cost of feed over Farm Credit Canada and Bank of Montreal, the hog producer's secured creditors. 

In general, the Court found Suppliers may have an unjust enrichment claim arising from an alleged fraud on the part of producer, who allegedly ordered feed while preparing for the Companies Creditors Arrangement Act ("CCAA") application with no intention of paying for the feed.

Puratone Corp. (Re), 2014 MBCA 13 [http://www.canlii.org/en/mb/mbca/doc/2014/2014mbca13/2014mbca13.html]

Brian Kaliel, QC of our Edmonton office summaries the reasons of the Court of Appeal Chambers judge, A.D. MacInnes J.A., in granting leave (permission) for the appeal to go ahead and be determined on the merits:

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