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Tous les autres exemplairee originaux sont filmds en commeni;ant par la premidre page qui comporte une empreinta d'impression ou d'illustration et en terminant par la derniere page qui comporte une telle empreinte. Un des symboles suivan^s apparaftra tur la dernidre image de cheque microfiche, selon le cas: le symbole —^ signifie 'A 8UIVRE", le symbole V signifie "FIN", Les cates, planches, tableaux, etc., peuvent Atre filmds d des taux de reduction diff^rente, Lorsque le document est trop grand pour Atre reproduit en un seul clich6, il est film* i partir de Tangle supdrieur gauche, de gauche i droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammec suivant* illustrent la mdthode. 1 2 3 4 5 6 ■ '."■■' . , ■* I ' INSOLVENCY MANUAL. .A.1T INSOLVENCY MANUAL CONTAINING THE ARTICLES OF THE CODE OF CIVIL PROCEDURE RELATING TO ABANDONMENT OF PROPERTY, CAPIAS AD RESPOND- ENDUM, ATTACHMENTS BEFORE JUDGMENT. AND REVENDICATION TOGETHEH WITH NOTES UPON CONSERVATORY ATTACHMENT, COMPILED AND COLLATED WITH THE MOST RECENT AMENDMENTS AND THE LATEST DECISIONS OF THE COURTS. BY ROBERT STANLEY WEIR, B.O.L. JS.HD'^OCJi.l'E. /5l 7 'li; '% MONTREAL PERIARD. Law Publisher, 23 ST. JAMES STREET. 1890. i i I ' ii if! Entered according to Act of Parliament of Canada, in the year 1889. by RonEKT Stanlky Wbir, B. C. L and A. Pkkiaud, In the ofllco of tho Minister of Agricul- ture, Ottawa, 1»; PREFACE. The Quebec Statute, 48 Victoria, chapter 22 (1885), introduced important araondiiients to the law of insolvency. These amendments, it may be fairly said, greatly facilitated the winding up of insolvent estates, and proved of corrrsponding value to the mercantile community generally. Important decisions have been pronounced by the courts in connection with these am.endments, and it has been the compiler's object to collate them with the text of the law. The provisions as to capias are so intimately connected with the law as to abandonment of property, that they have also been incorporated. This has seemed all the more desirable as the law in capias matters has also been amended, so that its meaning and object are now well defined. The Client, for whom, as well as for the practising Advocate, this work has been com- piled, has frequently enquired : Of v. hat practical utility is the law of capias, and what may a creditor expect from its operation ag'iinst a secreting or absconding debtor, or one who re- fuses to make an assignment ? Briefly, it may be said in answer : that under the law as now MM IV PREFACE. framed, the 'vrit of capias, if maintained, ultim- ately compels the debtor to abanilon all Lis pro- perty, for the common benefit of his creditors, unless he prefer to spend one year or less, in durance vile. It also ensures, his imprisonment for a like period (in the discretion of the court or judge,) should he be found guilty of any fraudulent secretion or concealment, in the abandonment of his property. The important subjects of Revendication and Conservatory attachments so frequentl}' invoked in cases of insolvency, are also presented, al- though having, of course, a wider range. Curators, Merchants, and Advocates, will all, it is hoped, find this book of service. L. M. Q. R. S. W. No. 186 St. James Street. Montreal, 18th October 1889. S. i til all, REFERENCES. L. C. J. — Lower Canada Jurist. i\I. L. R. — Montreal Law Reports. Q. L. R. — Quebec Law Reports. L. N. — Legal News. R. L. — Revue Legale. Sup. Ct. Can.— Supreme Court of Canada. Q. B. — Court of Queen's Bench. S. C. R. — Superior Court sitting in Review. S. C. — Superior Court, il Erratum, At page 39, line 8, read •' justify " for " satisfy." " " " " 10, read " satisfy " for •♦ justify." TABLE OF CONTENTS. PAGE Table op References Table of Cases cited vu-x Op Abandonment op Property Op Capias ad Respondendum go Op Attachment bepore judgment 34 Op Attachment by Garnishment 39 Op Revendication 4o Op Conservatory Attachment 43 Taripf of pees, etc ' 63 FORxMS. . . . 55-73 Index 75 TABLE OF CASES CITED. Angers & Trndel. PAQK, . 32 Bank of Upper Canada v. Alain 21 Banque d'Hochelaga v. Union Bank 12, 1?) Brucker v. Molier 2 Beaudry v. Kelly 4 Bel'rr' e v. Taylor 5 Bonthillier v. Desinarteau 15 Bertrand v. Meunier and McKibbin 40 Brown v. Lemieux 45 Baldwin v. Binmore 50 Burnett v. Ponieroy 51 Beaulieu v. Linklater 35 Canadian Mutual Fire Ins. Co. v. Blanchard 8 Chinic v. Bank B. N. A. and Rattray 14, 15 Chi'e^tien v. McLane 21 Chanteloup v. Dominion Oil Co 17 Charnel v. Beckett 23, 29 Chevalier v. King 24 Corbeil v. Charbonneau 34 Cote V. Graham 50 David and Fisher & Dion and Hains 7 DeBellefeuille v. Desmarteau 14 Dwytr V. Fabre and McCarron 12 D'Anjou V. Thibaudeau 21 Drapeau v. Pacaud 24 Duquette v. Patenaude 32 Dorion v. Dorion 34 Dupaul V. Wheeler and Wheeler 45 Duchesnay v. Watt 50 Duperr^ v. Dumas 43 VIII Table of Cases cited. PAOBS. Exchange Bank and Campbell & Ontario Bank and 'Jhaplin Fauteaux and Kent v. Marchand 14 Friedman v. Parker 17 Furness v. Bleault 3 Fraser v. McTavish and Bank of Montreal 52 Gault V. Robertson 25 Gault V. Dussault 16, 21 Groth^ V. Stewart 12 Guindon v. Fatt 41 Gay V. Denard 22 Grant v. Federal Bank of Canada 40 Goldie V. Bisaillon 45 Goulet V. Green 52 Gilbert v. Conidet 43 Henderson v. Lamoureux 31 Henderson v. Lemieux 2 Heyneman v. Harris 15 Henderson v. Tremblay 51 Hurtubise v. Bourret 22 Hope A. V. C. J. Opinion re 52 Jacob V. Jacob. 3 Kent V. Ross et al 11, 43 Kent V. Granger 11 Larue v. Clarke 20 Lovell V. Meikle 3 L'Heureux v. Martineau 22 Lajoic V. Mullen 30 Legru V. Dufresne and Ryan 45 Leduc V. Tourigny 50 Lambe v. Hartlaub 51 Leslie v. Molsons Bank 00 Lebel v. Pacaud 51 Table of Cases cited. ix PAGES. Mathewson v. Bush 25 Re Menard 14 Moi'sei Iron Co. v. Olsen 21 Metracomet Bank v. Paine 25 Mackie v. Vigeant 45 Mills V. Ferguson 49 Mitcholl V. Benn 22 McDougall V. McDoiigall and Miinro 7 McKinnon v. Keroack 16, 21 Moisan v. Roche 43 Nash V. Beuthner 17, 22 Nordheimer v. Leclaire 46 Ogilvie V. Favreau 3 Opinion, re A, & 0. J. Hope and Co 00 Pacaud v. Brisson 12 Parent v. Trudel 2, 3 Prentice v. Steele . 11 Purcell V. Kennedy 17 Pleau V. City and District Savings Bank 40 Reed v. Bisset 4 Rochette v. St. Louis 9 Rogers v. Mississippi and Dominion S. Co. and Rattray 11 Ryle V. Corriveau 22 Richardson v. Fortin 29 Robertson v. Ferguson 49 Sirois V. Beaulieu 2, 4 St. Jorre v. Morin 8 Sutherland v. Phillips 28 Slessor v. Dt^silets 30 Sinclair v. Ferguson 49 Thibaudeau v. Benning 9 Thompson v. Kennedy and Allen 8 Tourville v. Duf resne ... 2 I'll m >9 m y ^!f X Table of Cases cited. Trudeau V. Renaud ^"oi Thompson v. Lacroix ' f: Thibaudeau v. Villeneuve. o? Taylor v. Brown and Federal Bank ah Thibaudeau & Mills.. .. : Torrance v. Thomas. f^ Trudel v. Trahan !]; uu Woodward v. McKenzie . Wulff V. Elliott ^l Whitehead v. Kieffer and White .e Wyatt V. Seneeal *, Wheeler V. Dupaul ,.. 4o AN INSOLVENCY MANUAL. ABANDONMENT OF 1'U<*I'I-;K'IT, AS CONTAINED IN THK CODE OF CIVIL PROCKDC'HK. ! 7tt3n Any debtor, arrested uwlar a writ of co/plas ad resjoondenduni, and avi.ry trader * who has ceased his payments, 2 may make a judicial abandonment of his pro[><;rty for the benefit of his creditors. (1) Sec. I of the Insolvent Act of 1875 contain** fh« followinof comprehensive list of those wlio iiiiiy be nnxy^uVMA h^\r(uU;\'H. " 'rhe following persons and partnershiiw, iiiaj (JKfx/^jrrporntofl companies exercising like ti-adcs, calliuKu or itmitUt^tuaiiif^, shall be holfl to ho traders within the meaning of Uji« A/;f ; "Apothecaries, auctioneers, bankers, brok«jr«, brt/ik makers, btiilders, carpenters, carriers, cattle or siic^p HnU'.p,Uii',n, coarh proprietors, dyers, fullers, keepers of iiui«, UtMt'.run, hotels, saloons or coffee houses, lime burners, iivery aluUU'. kfiopers, market gardeners, millers, miners, packers, pnnfitrs*, <((jflrrymen, shnrebrokers, shipowners, shipwrights, Hlo<:kbrok<;r», ttf^H-k job- bers, victualers, warehousemen, wharfingers, pors-ywis Insuring ships or their freights or other matters againhi ix^rih «ff tbo sea, persons using the trade of merchandise by wwy itf t»nirKfy (faiUUf) is " meant the condition of a trader who has diHcotiUuu4s(i his pay- "ments." -Vide article 797 et seq. infra, for vfQw\»Utm ro«pecting -( . > 2 Insolvency Mn/nnai, In the absence of ctqr'uiH, no ««l»n,n, \t,2HH, H. (J. IHH7. 3. Que I'acte 48 Vic. ch. 22, paMs/i par la lAglslatm-e de Quebec, n'est pas ultra vircti ; I'l la tH^nnmu de biens et leur distribution, quo cet a«!t<^ antoriwM, nhini qiK^ IV-nui- nation du capias ad reHpondnnduni. nn'il pMrnict, Hont compris dans les sujets sur l('«qu(d in , 10 b. N.2I7. 8. ni<'n '!"*' '"- ''"w^^'^'n volontairo do bioriH par un d6l>it<'ur a hoh ci'(''(Un;i<'rH,tio d<''|»oinllo paw b^ dcbitour <{e la propi'i/'t^« d(* k«'h bicdiH, olio cotiHtituo ii6aniai»inH on favour doH or/'aiici^ivon to \\\n creditor by tho contract." Deolslons : — I. A tiroiniHsory note sed of two or more persons. The appointment of a curator, is with the court or judge, and not with the creditors; but creditors attending the meeting will be heard, and their suggestions as to the appointment, will be considered by the court — Beaudet & Chinic; S. C. 1887, Stuart C. J. ; 13 Q. L. K., 265 | 10 L. N. 396. 3. The Court of Appeals will not interfere with the discretion exercised by a judge of the Superior Court in the appointment of a Curator. David & Fisher & Dion, Q. B. September 1889. 769. After the abandonment, any proceed- ing by way of attachment, attachment for rent, or attachment in execution against the move- ables of the debtor is suspended ; and the guar- dian or the curator has a right to take possess- ion of the goods seized, upon serving by a bailiff, a notice ^ of his appointment, upon the seizing creditor, or upon his advocate, or the bailiff" en- trusted with the writ. The costs upon such attachment, made after the notice, or, in the absence of such notice, in- curred by a creditor after he had knowledge of the abandonment, either personally or by his advocate or by the bailiff, and, in all cases, the costs of attachment made eight days after the H i! II u ^^ ■if ■ « ■ 'I i^ \ . \ .1 * 'I I.'! 1- See form G. 8 Insolvency Manual. w notice given by the debtor or the curator, cannot be collocated upon the property of the debtor, the proceeds whereof are distributed in consequence of tae abandonment. Decisions. — I. Que malgre la cession de bienset la no- mination d'un curateur, le creancier peut, en vertu de son jugeinent, faire saisir et vendre par bref de biena rinimeuble cede par son debiteur dans sa cession de biens St. Jorre v. Morin, 10 L. N. 14, Cimon J. 1886. 2. Que rien n'empeche un creancier de prendre un jngementcontre son debiteur, quand nieme celui-ci serait sous TefFet d'une loi de faillite, etn'aurait pas (mcore ob- tenu sa decliarge; et un plaidoyer a I'encontredel'action du creancier ne contenant que l'all6gation de cet etat de faillite, sera rejete sur reponse en droit The Canadian Mutual Fire Ins. Co. v. Blanchard, 2. M. L. R. 01, S. C. 1886. 3. That the provisions of art. 769 do not nullify any attachment, saise gagerie, or execution, but simply con- stitute a protection to the creditors generally as to costs, and the court can permit the continuance of any such proceeding instituted, according to circumstances. And held also that where an abandonment had been made by the defendant, but no provisional guardian ap- pointed, the plaintiff would be allowed to proceed with an attachment after judgment in the hand of third parties — Thompson et al. v. Kennedy & Allan et al, 16 R. L. 522. S. C. 1888 TTO. The curator is bound to make his ap- pointment known, by an advertisement in the Quebec Official Gazette, and by a registered notice, transmitted by mail, to the address of each creditor. ^ In such notice, the curator shall call upon the creditors to file their claims with him, within a delay of thirty days, ^ 1. See form H. ?. See form K. Abandonment of Property. 9 \ ' Note. — No formalities are expressly required for the fyling of creditors claims, but the analogous article 604 C. C. P. probably applies : '' 604. The claims may be made out in a summary •' manner, and it is sufficient for th^^m to state the names, " occupation, and residence of the claimant and the <' nature and amount of his claim. " They must be accompanied with vouchers if there " are any, or if not, with affidavit that the sum claimed " is lawfully due." Denisions. — I. That where the creditor held certain promissory notes received by him from the debtor as col- lateral security, he was not CDtitled to be collocated for the amount of his claim, without deducting sums re- ceived by him on account of the notes, since the 'Vling of his claim. — Thibandeau & Benniny, 17 K.L. 173. Q. B. 1889. A creditor is not obliged to value his security. Ibid. 2. The holder of negotiable paper, the maker and en- dorser of which are insolvent, who receives a dividend from the estate of one of them, cannot claim on the estate of the other for the full amount of his claim, but should on the contrary, deduct the amount of the first dividend when he fyles his claim on the estate of the second ; but if after having fyled his claim, he receives a dividend from the estate of one of the parties bound towards him, he has nevertheless the right to be col- located for the full amount of his claim as fyled, provided these dividends do not exceed the balance due him. — Ro- chette St. Louis and Migner, Meredith J. 3 Q. L. R. 97. S. C. 1877, 3. That a creditor has not the right to be collocated for the full amount of his claim, on the goods of those bound jointly and severally towards him, without de- ducting what he has received from them, before fyling his claim — Exchange Bank of Canada, in liquidation and Archibald Campbell et al and Ontario Bank and Chaplin 17 K. L. 246, Q. B. 1889. '770a. The curator appointed may be required to give security, the amount whereof is fixed by the court or judge ; and he is subject to the sum- mary jurisdiction of the court or judge. 10 Insolvency Manual. II; Such s^ urity may be given in favor of the creditors oi the debtor generally, without men- tioning their names. Civil Code. art. 2272. — " Curators are subject to impria- " oninent for whatever is due by reason of their admi- " nistration, to those whom they represent." TT1« The curator takes possession of all the property mentioned in the statement, and ad- ministers it, until it is sold in the manner here- inafter mentioned. TT3. The curator has likewise a right to re- ceive, collect and recover any other property be- longing to the debtor, and which the latter has failed to include in his statement. The curator may, with the permission of the court or judge, upon the advice of the creditors or inspectors, exercise all the rights of action of the debtor and all the actions possessed by the mass of the creditors. Decisions I. B. and C. of Quebec, ordered goods from R. and al. of Wolverhampton, England, who shipped them by defendants steamer Vancouver, from Liverpool to Quebec consigned to B. and C. and a bill of lading in the usual form was accepted and forwarded for them. On the 20th June 1887 before the arrival of the goods, B. and C. having become insolvent made an aban- donment of their property, and intervenants were ap- pointed joint curator to the estate. On July 25th the goods were seized by R. and al. in the possession of the defendants under writ of saisie revendicaiion. Art. 6 C. C. does not apply to prevent the exer- cise of the right of stoppage m transitu in the case of goods shipped in England, when the right accrues under the law of England. The '< delivery" mentioned in ait 1543 oftheC. C. as amended by 48 Vic. ch. 20 sec. 1, means actual delivery into the possession of the purchaser, and not Abandonment of Property. 11 Buch constructive delivery as results from putting goods for shipment in the hands of a carrier. — Rogers and al. v. The Missisaipi and Dominion S. Co, & liaUray, 14 Q. L K. 99. S. C. J 888. 2. Tlie curator to the property, abandoned by insolvent trnder,hus the right to revendicate goods removed without his consent, from his custody, without previously taking the advice of the creditors, and being judicially authorized. — Kent and al. v. Ross and al., 16 K. L. 209. 3. Where a person notoriously insolvent, transfers a policy, of life insurance to a creditor as collateral security for a pre-existing debt, and the amount of the insurance is received by such creditor after the death of the assignor, any other creditor may bring action in his own name against such assignee, to set aside the assignment and to compel him to pay the money into Court for dis- tribution among the creditors generally. — l*r entice and ;S/ee;e4M. L.R.319|S.C. 1888. Semble : That under Art. 772 the curator could take such an action for the benefit of the creditors generally. The curator may sell the debts and moveables and immoveables of the debtor, in the manner indicated by the court or judge, upon the advice of the parties interested, or the inspectors. Decisions. — I. That a curator to a judicial abandonment who sells without reserve the book debts of the debtor, and who on payment of the price, delivers the books themselves to the purchaser, cannot afterwards reven- dicate them, if he only proves that the creditors of the debtor have an interest in obtaining possession of the books — Kent and al. v. Granger, 17 R. L. 63, S. C. 1889» 2. That the sale of bootj debts of a trader in insolvency, does not include the books of account themselves, but eimply the sale of the claims of the insolvent. — Guindon T. Fait, 3 M. L. R. 79 S. C. R. 1887. Upon the demand of the curator authorized by the creditors or by the inspectors, or upon H li "!|1! ■ \ 12 Insolvency Manual. the demand of an hypothecary creditor, of which demand sufficient notice must be given to the debtor, the court or judge may authorize the curator or command him to issue his warrant ^ addressed to the sheriff of the district where the immoveables of the debtor are situated, requiring him to seize and sell such immoveables. Decisions. — I. Que les creanciers de I'insolvable peuvent seuls attaquer Ihj'potlieque acquise pendant son insol- vabilite notoire, et que le tiers detenteur ne peut pas oppo3er ce moyen. — Pacaud et Brisson 12 Q. L. K. 281. S. C. R. 1886. 2. The registration of a hypothec within thirty days oi the insolvency of the person granting it, is without effect. Such claim should be collocated as an un-privileged claim. Dioyer & Fab) 3 tfc McCarron, 24 L. C. J. 174, S. C. 1879. 3. Que celui qui a obtenu du failli, longtemps avant la faillite, un bon titre a un immeuble, mais qui n'a pas enregistrer son titre avant la faillite, peut cependant empecher la vente du dit immeuble par le syndic, et obtenir distraction de cet immeuble. Grothe v. Stewart 12 R. L, 218 S. C. 1882. 4. Qu'une obligation d'hypotheque consentie par un debiteur a son creancier, moins d'un mois avant la mise en faillite du premier, est nulle. Que ce creancier est presume avoir connu I'insolva- bilite de son debiteur si, trente jours apres avoir obtenu telle obligation, il a produit une deposition a I'effet de faire emaner un bref de saisie contre les biens de ce debiteur, qu'il accuserait d'insolvabilite notoire. Que la collocation de tel creancier sur les biens de son debiteur, basee sur I'obligation en question, sera rejetee sur contestation par tout autre creancier du failli, et alors, 11 sera fait une nouvelle distribution du montant de cette collocation. — La Banque d' Hochelaga v. Union Bank, 12 q. L. R. 377. Q. B. 1886. I. See from I. 't. Abandonment of Property. 13 Civil Code, art. 2023 " Hypothec cannot be acquired, " to the prejudice of existing creditors, upon the immove- " ables of persons notoriously insolvent, or of traders, " within the thirty days previous to their bankruptcy." The sheriff executes such warrant, without making any service upon the debtor, but by otherwise observing the same formalities as in the case of a writ de terris ; and all proceedings subsequent to the issue of the warrant, up to the distribution of the moneys arising from the sale, are had in the Superior Court. The distribution of such moneys must be made by the curator in accordance with the provisions of article 772a. T72a. The moneys realized by the curator from the property of the debtor, must bo distrib- uted among the creditors by means of dividend sheets, prepared after the expiration of the delays to file creditors' claims, and are payable fifteen days after notice ^ is given of the preparation of such dividend sheets. Such notice is given, by the insei'tion of an advertisement in the Quebec Official Gazette, and by a registered .lOtice, sent by mail, to the address of each of the creditors of the debtor, who have filed their claims, or who appear upon the list of creditors furnished by him. The claims or dividends may be contested by any par.iy interested. The contestation for such purpose, is filed with the curator, who is bound to transmit it immediately to the prothonotary of the Sup- erior Court of the district in which the proceed- ings upon the abandonment erA then deposited, 1. See form J, I i: I I , 14 Insolvency Manual. ill or to Ruch other district as the parties interested in the contestation may agree upon, and such C()nt(!station is proceeded upon and decided, in a summary manner. Decisions I. The 48tli Vic. ch. 22 does not affect the comnion law as to the right of creditor to claim against the estate of a joint debtor en d^conjiture. Under the common law of this province, a creditor claiming? against the estate of a joint debtor is entitled to take a dividend on his claim, only after deduction there- from of whatever he may have received from his other joint debtor. Money due by the creditor at the time the claim is made, is to be set oft* against the claim and not against the dividend to be declared upon it la re Chinic and al. and Bank of B. N. A. and Rattray 14 Q. L. R. 265. S. C. IS88. 2. That the curator who neglects to transmit immed- iately to the prothonotary a contestation of a claim as required by C. C. P. 772 a, will be condemned to pay the costs incurred by his default, on petition of the claitn- ant asking for payuient of his dividend, even although ilie curator has previously given claimant verbal notice that a contestation had been filed. — Faiiteux, Kent, Tarcotte and Marchand, 17 K. L. 256. S.C. 1889. 3. The lessor who has issued a. saisie-gagerie, is entitled to be paid out of the proceeds of the effects garnishing tlie leased premises, by preference to the costs of tlie curator appointed to the judicial abandonment made by tlie lessee subsequentto the seizure, with the exception of the costs incurred for the safekeeping and sale of the effects — J)e Bellefeuille & Desmarteau, 3 M. L. K. ; 'i^'i Q. B.; 1887. 4. The privilege of the lessor for his rent ha» priority over that of the curator to a judicial abandon- ment except for costs incurred in the interest of the lessor In re Menard, 2 M. L. K. ; 130 S. C. 1886. 5. Que sur la contestation du memoire de frais du curateur, a une cession de biens, faite sous les di** Abandonment of Property, 15 dio- positions des articles 763 etsuivants C. V, I*. \t^n frais de procureurs du contestant doivent etre tttxAw, conform6- ment aux articles 51 a 55 inclusivem«nfc cJu tarif des Hvocats de la cour superieure — lioutkillUir dt Desmar teau et Letourneux, 16 R. L. 48. S. 0. IHHfi, 6. Qu'une obligation d'hypotheqne conHtmi'ta par un debiteur a son creancier, moins tVun moot pvant la mise en faillite du premier est nuUe. Que ce creancier est presume avoir ennwt linsolva- bilite de son debiteur si, trente jours ui)t'OH (ivnir ol»tenu telle obligation il a produit une deposUlori 'i V^^i\\^t de faire emaner un bref de saisie centre lai* hicm de ce debiteur qu'il accusi^rait d'insolvabilite noUiit'o. Que la collocation de tel creancier »m' im fiiens de son debiteur, basee sur I'obligation en uttttntinn, sera rejetee sur contestation par tout atiti© *:rhitu;\e,v du failli, et alors, il sera fait une nouvelle dwtji^ution du montant de cette collocation. — La Jiauf/u/: iV Jlochelaga V. Union Bank, 12 Q. L. K. 377. Q. B. 18^0, 7. The privilege of a commerciul f rav«)l"r ior wage?, under C. C. 20U6 which was niaintaiu'^d >>y Super- ior Court, not determined by Court of Qti*ji?»i*» Bench, but doubted — Heyneman and Ilarrin. M., l. H, 2 Q. B. 466. 8. There can be no compensation of a lUAti due to an abandoned estate, at the time of ilia abandonment, by an unprivileged claim for unea/'ued wn^cn. — Ohinic and Lefebvre and Rattray 14 Q. L, li. JOT. H. C. j 1888. Civil Code, art. 2005 — (as amended.) " 'Urn privilege oT the lessor extends to all rent that is «^»r*>i privilege " is restricted to the whole of tlie veui duo and to " become due during the current year, if iiicm remain " more than four months to complete iUh y^ar : and if " there remain less than four month» t/* tJOfnpleto the " ypar, to the whole of the rent due and to the rent " becoming due during the current year aud the whole " of the following year. I ■ i: f' I Id huolvency Mn/iiiud, "If the lease be not in autluintio form, tlm prlviloge " can only be claimed for throe ov<^r(JiiM irinl,nJriiMtiti4 and " for the remainder of the current yMur," Note For privileged ciaiuiH upon inovmhln property fiee Civil Code art. 1D'J4 et Heq; upon iMidiovoableH liOOl) ot seq. 77;5. Any creditor may (•ontefHt tho Hfcato- ment, by reason : 1. Of the omission to mention pro|)«',rty (jf th(3 value of eighty dollars ; 2. Of any secreting by the ddbiof within tho year innnediately preceding thn in itil/Utioii of the suit, or since, of any portion of hiw [>ro[)erty, with intent to defraud his creditorn ; 3. Of fraudulent misreprcwird-atiouM in tho statement, with respect to tlnunnn bur of his cred- itors or the nature or amount of Wmv (^hiiiriH. In cases where the debtor ban ^ivi'U notice of the abandonment of his property to Ihm creditors as above prescribed, the drhiy t<» coritcHt tho statement is restricted, as to tho creditorH to whom the notice is sent, to tour nionthH i'rom the date of sending such noticu, Decisions — I. Fraudulent proforenn« by wliNili a««et» which should be available for the crediior«/^M»MM'ally, aro given to one or more, is efjuivaleut to >»Myt'otion i-^UauU V. DtLssault 4 L. N, 321, Q. B. 188b 2. La preference donnee par im ^\h\MM\\v ln«olvahle k un de ses creanciers, constitue un r. Civil Cotio, article 1036. — " Every payment by an in- '' Holv(iiit (lolitor to II T. When tlio amount claimed exceeds forty dollarH, tlio plaintiff may obtain, from the pro- thonotary of the Superior Court, a writ of sum- mons and arrest a^ijainst the defendant, if the latter is about to leave immediately the province of Canada, or if he secretes liis property with intent to defraud his creditors. 1. The writ of capias cannot issue for a foreign debt. Vide article 800 infra. 2. "The province of Canada," to wit: the provinces of Ontario and Quebec. 3. The province of ^fanitoba does not make part of Canada in the terms of T'J? C. C. P., and consequently the debtor who leaves the province of Quebec for that part of the Dominion, cannot claim to be exempt from arrest under capias on that ground. — Lain6 et al. v. Clarke, 2 R. C. 232. TOS- This writ is obtained upon an affidavit ^ of the plaintifi', iiis bookkeeper, clerk, or legal attorney, declaring (a) that the defendant is personally indebted to the plaintiff in a sum amounting to or exceeding forty dollars, and {h) that the deponent has reason to believe and verily believes, for reasons specially stated in the affida- 1. Sec Form L. Issue of capias ad Respondendum. 21 vit, that the defendant is about to leave imme- diately the province of Canada, with intent to defraud his creditors in general, or the plaintiff' in particular, and (c) that such departure will de- prive the plaintiff of his recourse against the defendant ; or upon an affidavit establishing, (d) besides the existence of the debt as above men- tioned, (e) that defendant has secreted or made away with, or (/) is about immediately to secrete or make away with his property and effects with such intent. Decisions.— I. The affidavit may be made by the book- keeper of a branch of the Upper Canada Bank; {TJie Bank of Upper Canada v. Alain, 5 L. C. R. 318) ; the president of an incorporated company {The Moisie Iron Co. V. Olsen, J 8 L. C. J. 29 Q. B.) | the Plaintiff's wife Chretien v. McLane, 3 R. L. 348. 2. If the plaintiff swears he believes the defendant is about to leave the province, from his own knowledge, he must state the cause of his belief. — Chretien v. McLane, 3 R. L. 384. 3. It is not necessary to set forth in the affidavit the grounds of affiant's belief that the defendant is secret- ing his effects with an intent to defraud D^Anjou & Thibaudeau, 11 R. L. 512, Q. B. 4. Fraudulent preference, by which assets which shouid be available to the creditors generally are given to one or more, is equivalent to secretion.— CrawZ^ v. DussauU, 4L.N. 321,Q. B. 1881. 5. A preference given by an insolvent debtor, to one of his creditors, constitutes secretion and renders the debtor subject to arrest by capias Mackinnon & Ke- roack, 15 R. L. 34, Q. B. Confirmed by Supreme Court of Canada. 6. Que le transport fait, par un debiteur insolvable, de tout son actif, a un de ses creanciers, dans le but de lui donner une preference sur les autres, constitue la sous- ri m 'ill F#l 22 Insolvency Manual. traction de ses biens, avec I'intention de frauder, justi- fiant I'emanation d'un capias. — Nash v. Beuthner, 16 R. L. 699, S. C. R. J 889. 7. Qu'une personne ne peut etre arretee, sur capias ; parce qu'elle aurait recele des biens appartenant au de- mandeur et non a lui-meme, et que le recel justifiant le capias doit etre des biens memes du defendeur. Que le demandeur, qui a une action en reddition de compte, ne peut accorupagner sa poursuite d'un bref de capias ; quami meine, dans Paction, il reclamerait un montant determine, parce que tant que la reddition de compte n'est pas faite, et le compte debattu, il n'est pas certain que le defendeur doive un montant de quarante piastres. — Gay v. Venard, 15 R. L. 585, S. C. R. 1887. 8. Qu'un huissier immatricule du district oil emaneun bref de capias, peut executer ce bref dans un autre district. Qu'il n'est pas necessaire d'indiquer, dans une deposi- tion pour capias, le temps du recel, lorsque I'allegation est que le defendeur a recele et est sur le point de rece- ler Trudeau v. Renaud, 17 R. L. 647, S. C. 1889. 9. Conformably to the judgment of the Court of Appeals in Huriubise v. Boiirrei (23 L. C. J. 138), it is not neces- sary to state in the affidavit, the date of the debt, nor the place where it was contracted, and the allega- tions as to secretion may be properly stated accord- ing to form 45 of the Code of Procedure, although that form is given in connection with another article. — VHeurmx v. Martineau, 6 Q. L. R. 275, S. C. 1880. 10. The word "personally " is not sacramental, and its omission from the affidavit is not fata', if it otherwise appear in the affidavit, that the debt is personal. — Ryle V. Corriveau Silk Co. S. C. 1884. i 'I II. An affidavit for capias alleging, that defendant is on the point of absconding from the heretofore province of Canada with intent to defraud his creditors, but without containing the reasons for deponent's belief, is irregular, and the capias will be quashed Mitchell v. Benn, 1 6 R. L. 431, S. C. 1888. Issue of capias ad Respondendum. 23 T09. The writ may also be obtained if tlie affidavit establish, besides the debt, that the de- fendant is a trader, that he has ceased his pay- ments and has refused to make an assignment of his property for the benefit of his creditors. Decision. — A claim anterior to 48 Vic. Ch. 22, 1885, amending article 799 C. C. P. is not governed by that .jtatute, but by the law anterior thereto, according to which, a demand of abandonment could only be made, when a trader, notoriously insolvent, continued his business. — Channel v. Beckett^ 17 R. L. 678, 1888. Note : — Article 799 prior to the amendment 48 Vic. Ch. 22. S. 12 read as follows: " The writ may also be obtained if the affidavit estab- " lishes, besides the debt, that the defendant is a trader " that he is notoriously insolvent, that he has refused to "arrange with his creditors, or to make an assignment •' of his property to them or for their benetit, and that he '' still carries on his trade." J^OO. The writ of cajnas may likewise be ob- tained by any creditor having an hypothecary or privileged claim upon an immoveable, upon an affidavit establishing that his claim exceeds forty dollars, and that the defendant, whether he is the original hypothecary debtor or simply the holder of the property, is, with the intent of defrauding the plaintiff, damaging, deteriorating or diminishing the value of the immoveable, or is about to do so himself, or by others, so as to prevent the creditor from recovering the whole or any part of his claim, to the amount of forty dollars, as provided by chapter 47 of the Consol- idated Statutes for Lower Canada. ^01. If the demand be founded upon a claim for unliquidated damages, the writ of capias cannot issue without a judge's order, after exam- M U ii 1 1 — ^tfi 24 Insolvency Manual. ilU M |i ^ ining into the sufficiency of the affidavit ; and the affidavit in such case must state the nature and, moreover, amount of the damages sought, and the facts which gave rise to them, and the judge may in his discretion either grant or refuse the capias, and may fix the amount of the bail upon giving wliich, the defendant may be re- leased. HOI2. The writ of capias may be joined with the writ of summons, or may be issued after- guards as an incident in the cause. In the latter case it must bo accompanied with a summon« for a fixed day, to show cause why the writ should not be declared valid, and joined with the principal demand. The writ may also issue after judgment has been obtained for the recovery of the debt. Decisions. — I. Que lorsqu'un demandeur, dans une cause pendante devant la Cour de Circuit, fait emaner, en Cour Superieure, un bref de capias, dans la mSme cause, il ne sufiit pas d'ulleguer et de prouver qu'il a in- tente une action centre le defendeur en Cour de Circuit et qu'elle y est pendante, mais il faut qu'il demands en Cour Superieure, et qu'il y prouve centre iui une creance suffisante pour justifier I'emis.sion d'un bref de capias, — Chevalier v. King, 2 M. L. E., S. C. 1886. 2. Le capias emane apres jugement obtenu, ne tend pas a I'obtention d'une nouvelle condamnation au paie- ment de la sooime deja accordee par le jugement sur lequel il est pris, mais seulement a ce que le capias soit joint a ce dernier jugement et declare valable. — Drapeau V. Pacaud, 6 Q. L. R. 140, S. C. R., 1880. 3. Qu'il n'est pas necessaire que le bref de capias emane apres jugement, soit emane comme un incident de la cause oil le jugement a ete rendu, et porte le meme niunero de cette cause. — Trudeau v. Renaud, 17 R. L. 647, S. C. 1889. Issue of capias ad Respondemhcm. 25 4. A writ of capias based upon a judgment for a debt, cannot issue against the d '<< ndant, in a district other than that in which the judgment was rendered. — Mathewson v. Bush, J8 R. L. 7 Q. B. 1883. (Dorion C. J. gnee d'un bref de capias ad respondendum, p^'ut. dans le.s huit jours du jugement, demander la revWion titttui decision, sur une requete du defendeur, faito tiom I'ftrtiole 819 C. P. C. ordonnant sa liberation, quoiqu'il u\int pas de- clare de suite, aux termes de I'articlo H2'i (', V. C. qu'il entendait faire reviser la decision, et iU*\t(rM', \(', rr vntant requis par I'article 497. Channel vs. HenkiUl 17 It. L. 678, S. C. 1888. 3. The immediate declaration by th« plfiintjff', required by art. 823, does not prevent him fioiu inscribing for review in the ordinary way. — liichardaon V9. For tin, 17 Q. L. R. 18, S. C. R. 1886. 824. The defendant maj^ obtain liin discharge upon giving two good and sufficient Hurcti(!S, that he will not leave the province of (Janada, and that, in case he does so, such suretien will pay the amount of the judgment that nmy be rendered, in principal, interest and costs, or the amount fixed by the judge in the case of article 801, — But this bail cannot be received after the expi- 'om f 30 Insolvency Manual, I ration of the eif^lith day fi'Oin thd i\n.y I1x(h1 for the return of the writ of capiiiH, umIcwm with leav<^ of the court expressly ^ranttul upon Hiillioicnt cause shown. Decisions. — I. Even a temporary iiljwtirMio n\vr\n right r»r action against sureties. — Thompmm ph, LacroU, 'I Q. L 11.312,8.0. 1878. 2. Where a capias has been dnoMriu] ^nod ntifl valid, and the defendant in appealinf^ Crom mik'Ii Jiidgmont gives security for costs only, and lili'h a difcjiinitioii that lie does not object to the execution of thd JudgnifMit, tlio apix^'d does not suspend proc(M, (,|, II, IH70. 3. Une femme majeure et non paw «oum pnl«wa»i('o de jnari, pent logalement etre offorte coimihm «'autlouJudi- tiiairo. Slessor vs. D6sileta, 1 M. I.. U, \m. H. (!. IHH4. Civil Code, article 1938— "The debtor who h bound to " linil a surety must otter one, vvlio ha« Mim niipacity of "contracting, who has nutticiont jiroiHirty in bower " Ciinada, to answer the obligation, and who<^M doMiicHo " is within the limits of Canada." — Art. 'J,Xl'^\\,\m^ oxaots that any person indebted as ajudioial wurnty In liable to imprisonment. W25. The defendant may hIho ohtaiii his discharge, at any time before jiidj^iiHtid-, hy giv- ing good and sufficient suretittH to the Hatis- t'action of tlie court, or judge, or pi'othoiiotary, tliat lie will surrender himself into the handH of the sheriff, when required to do ho hy an onhn* of the court or judge, within one inotith from the service of such order upon hint or upon liin Hurcities, and that in default they will pay the amount of the judgment in prineipnl, IntereHt and costs, or the amount fixed hy the judge iu th(^ case of article 801. Of dhHchanjc upon Bail. 31 Decision. — I. (Ju'im y jjjivin;jf ^'ood juid suni(*i(!Mt stireti(!s to the sherill', to tlie satis- faction ol' i\u) latter, lud'ore tlui return (hiy ol' the wiit, that h(( will pay the amount of the judg- ment that may he ren(h;re(l upon the demand, in principal, ird/(!n ,",t and costs, if he fails to ;^ive hail pursuant to article «S24 or to article 825. — Deolslons.— I. On oaiiHO nhown, tho doiondant, after a jud^inont inaiidaitiing a oapiaH, and condpinning liitu to jmy tho dol»t, will \m portnittecl to pat in bail or Hooui'ity that ho will Hurroncior hiniHolf in torniH of tho law in })laoo of tlm hail givon to tho Hhoriff. IIo will also aftor jiulji^mont, on Hhowing cause, he porniittod to fylc tho Htatonuujt of his allairH required by C. S. L. C, c. 87, s. 12, (arts: 70l{ et Heq. of thin codo)./and plaintiff's petition for inipriHonrnJMit will ho dismissed in consequence of of such pormlti««ion. — Henderson vs. Lamoureux, 17 L. C. H.4I4. 2. Que loH cantionH ) thai tlie. (Ici't-ndant absconds oris ab(Mit iiiniiedia,tely to leave tlic ))rovinee, or (c) is seci'el,iMnt (^f his property for till' beuelitofhis creditors; and, (e) in either case, (hilt the (htpoumt verily believes that with- out the Itenefit of th(i attachment, the plaintiff will lose his del»t or sustain damage. Decisions. — 1. (i'un cr6ancier peut saisir avant juge- ment «Mitr(i hoh jtroprcs iimin-". Qae (laiiH hiih acLion (Mi ri^ddition de compte, il n'y a pas lieu ii uiio Haisio-anvt avaat jugement. Que, pour Uih Iuih d'umi saiHie-airet avant jugement, il faut (]Uo 1<^ (h't'ciKUnir rtuioUi [•j'oaenteinent lors de la date do rallMiivit, ou (iii'il Hoit sur le puint de receler. — Dorion k JJorion, M. L. U., 3 Q. B., 155 ; 1887. 2. An immoveable oimnot he attached before judg- ment. — Corbeil & Churbonneau, 4. L. N., 277. 3. By " the province " io meant the heretofore Province 1 Soo Form M. Attachment before judgment. 35 of Lower Canada. — Beaulieu vs. Linklafer, 17 L. C. R. 4UG. Hli^» It' the claim is founded on unliquidated damages, the writ of attachment cannot issue without the order of a judge after examining into the sufficiency of the affidavits, which, moreover, must state the nature and amount of the damages claimed and the facts which gave rise to them, and the judge may in his discretion either grant or refuse the writ, and fix the amount of the bail upon giving which the pro- perty may be released. S3G. Simple attachment is effected by means; of a writ addressed, both in the Superior Court, and in the Circuit Court, to the sheriff' or a bailiff of the district in which such writ issues, who may execute it in such district or in any other district ; or to the sheriff or a bailiff' of the district in which it is to be executed and, when in any other co\irt, to any bailiff, requir- ing such sheriff* or bailiff to seize the moveables and effects of the defendant, and to summon him to appear on a day fixed at the office of the prothonotary or clerk, to answer the demand and shew cause why the attachment should not be declared valid. Hi%7» The amount of the plaintiff's claim must be endorsed upon the writ, or the sum for which security may be given. H3S. The writ is issued by the prothonotary or by the clerk of the Circuit Court, as the case may be, upon a written requisition from the plaintiff. 86 Insolvency Manual. ¥ %)' It may be either in the French or English language. It is tested in the same manner as writs of summons. H30. The writ may also be issued for the Superior Court, according to the amount claimed, by any cleik of the Circuit Court, who, in such case, may likewise receive the necessary affidavit. ^40. The provisions contained in articles 81 and 811 concerning wiits of capias, apply like- wise to simple attachment. S4I. The seizure of th(3 goods of the defen- dant is effected in the same manner, as upon the execution of a judgment. The sheriff or bailiff may make the seizure in another district, if the debtor has conveyed his property there, or has withdrawn there himself. 842. A warrant of attachment may also be issued, in the case of article 884, by any Com- missioner of the Superior Court, addressed to the sheriff of the district where the warrant is to be executed, or to the bailiff or peace officer nearest to his residence, commanding him to seize and detain the effects of the debtor. H45i. This warrant of attachment is in the name of the commissioner who issues it ; it orders the moveables and effects of the defendant to be attached, with the ordinary formalities of seizures, and that they be kept and detained for the period of twelve days from the seizure, and no longer, unless before the expiration of such twelve days, a writ of attachment, pursuant to A ttachment before judgment. 37 the above provisions, issues from the proper court. 844* The effects so seized cannot be detained for a longer period than twelve days, under such warrant of a commissioner. 845, The commissioner wlu) granted such warrant must, without delay, transmit a dupli- cate thereof, together with the original affidavit upon which the warrant was granted, and a cer- tificate of his proceedings, to the prothonotary, or clerk of the Circuit Court, who must file and keep the same as part of the record in the case. H40. When in tlie 8u[)erior Court the writ or the warrant is addressed to a bailiff or any other officer than the sheriff, such bailiff or other officer is bound to make a return of his proceed- ings to the sheriff, and to deliver to him the effects seized, in order that they may be disposed of by the court, according to law. H47. The sheriff or ))ailiff may also demand in advance from the party suing out the writ, or his attorney ad litetn, such sum as may be deemed sufficient by the judge or the prothono- tary of tlie Superior Court from which the writ issued, for the safe-kee[)ing of the effects seized. H48. The sheriff or bailiff may renew such demand, as often as the sum so advanced is ex- ])ended, by presenting a petition, of which notice has been given to the party seizing or his attor- ney ad litem ; and if the amount fixed by the judge or prothonotary is not paid within twenty- four hours, the seizure is discharged, and the ■ 1 : 38 Insolvency Manual. I sheriff or bailiff' is exonerated from any liability whatever. S4f>. The writ of attachment must be re- turned with an inventory of the seizure, and a certificate of service both of the writ and of the declaration, in the same manner as upon a writ of capias. S50. A copy of the writ of attachment muis^t be left with tlie defendant, as well as a duph- eate of the inventory of the seizure, as soon as it is completed. As rep^ards the declaration, it may either be served at the same time as the writ, or within the three days which follow the seizure, by leaving a copy thereof either with the defendant or at the prothonotary's or clerk's otiice. H*>l. The effects seized must, in every case, be placed in the custody of a responsible persoi\ offered by the defendant, or, in default of such offer in the custody of a responsible person ap- pointed by the sheriff, bailiff, or other officer making the seizure, subject to the provisions re- specting guardians and depositaries in cases of execution against moveables. 852. If the defendant is absent from Lower Canada, or conceals hiniself, so as to prevent the service of the writ of attachment, the court, or a judge, upon proof of the fact by one credible witness, may dispense with the service, and or- der the defendant to be summoned in the man- ner provided in article 68. 855^. A defendant whose effects have been seized may get them restored to him by the Attachment hy ■■ :ii r tlieir declaration, and summoning the defendant to answer the demand of the plaintiff. Decisions. — I. That the garnishee who is in possession of moveables belonging to defendant is, by the service of the writ of attachment, constituted judicial guardian of them. That where the garnishee makes default to declare, and is insolvent, the plaintiff is entitled to a rule nisi to prove that the garnishee is in possession of the move- ables, and to have him condemned to deliver them to the bailiff* charged with a writ de venditioni exponas. — Rertrand & Metinier d^ McKihbin, 16 R. L, 266, C. C. 1888. 2. Where the garnisliee has declared that he owes the defendant nothing, but in answer to questions put by the judgment creditor, under C. C. P., 619, has made admissions which apparently show that he has a sum in his hands belonging to the defendant, that the proper course is to contest the declaration, an i not to inscribe for judgment ex parte on such statements Grant v. Federal Bank of Canada, M. L. R., 2 Q. B., 4; 1885. 3. Judgment on the declaration of a garnishee, oper- ates a judicial assigtunont to the plaintiffs, and an opposition subsequently filed by another creditor, alleg- ing insolvency of the defendant (as of writ issues from the Superior or the Circuit Court, it may be addressed either to the sheriff or to a bailiff of the district iu which such writ issues, and be by him executed, in such district, or in any other district, or to A ttachment by garnishment. 41 the sheriff or a bailiff of such other district, ia which such writ is to be executed, and in anj other court, to a bailiff. 85S. It is clothed with all the formaliticM required for ordinary writs of summons, and is subject to the provisions of articles 838, 839, 840, 842, 845, 846, in so far as they can be applied. 851K A statement of the amount for which the attachment is made or authorized is, more- over, endorsed upon the writ. SCO. The provisions contained in articles 614, t)i5, 616, 617, 618, 619, 620, 622, 623, 624, 625, 629, 630 and 631, are also applicable to cases (>f attachment by garnishment before judgment. 801. If the declaration of the garnishee is not contested, the court or judge, in rendering judgment upon the principal d'iiiand, adjudicates also upon the attachment, and the declaration of the garnishee. H^H, The plaintiff or the defendant may eon- tt^st the declaration of the garnishee, upon leave <»f the court to that effect. Such contestation is served upon the garnishee, together with a summons to appear on a day Hxed to answer the same, the ordinary delays for summoning being observed. S03. In other respects the contestation is fsubject to the rules of ordinary procedure. M64* If the plaintiff fails to contest the decla- ration of the garnishee within eight days after the principal judgment, he is foreclosed from 42 Insolvency Manned. courf ^""^ """^^^^ *^^ ^^^^^ '^ extended by the mo^?^' 7^^ defendant may contest the attach- ment made upon him, or in the hands of a garnishee, in the manner provided for cases of i. t y OF ATTACHMENT IN REVENDICATION. H06. Whoever has a riglit to rcvcwVicntfi A moveable, may obtain a writ for fch'M/;«rr («x(M'()Im(),staiit I'appol. - H'/M7<'//rvi(/ tls. Kir/lcr ef («/. ot H7///c, I M. L. U. 2H7.H.C., IHM4. 8. DanH tino MaiHiofovondication, lo doiuandetir pent f6giilior('innd«M' la (h'Miiriptioii dcs oflotn saisis nioin(^ avant lo jotir (hi rotonr do rac.tion, on on donnant avis aiix aiittoH parlioH — Lrifru vh, Dn/'resne, t^i liijan, I M. I,. |{.,;n;)S. ('. IKHf) 9. Although a voluntary /^iiiirdiim haHOonHontodtoloavo HiToctH Hoi/nd, in dnl'otidant'.s jxvsHossion, lio can novor- thoh'HH roolaiin tlmm hy HuiHierevendicafion if ho havr jtist roavoiiH ♦() I'oar that tho ^oods nnty dis»ii)|'oar and if delondant rtn'' ;irvontion. Ibid, 11. In tho ahMcujco of I'ratid or colluHion, the owtior ot niovoahloH cannot rovondicato thom from tho pmchaHOf at a judicial Halo. JlliH rocotirHO iw on tho pric«», or againnt I he Hoizing party.— vf/acA'/e V9. Viyeant, 1 M. L. U. •'JH2, S. C. IHSf). 12. A indicial nalo may he Hot anido for irrognlaritiofi in the | rocoodii>gH iih w«dl hh for fiand or oolhiBion ; and where a piano not tho property of defendant was Hoiae(i and Bold aa belonging to him, for an inHigniticant part ot ,1 I 46 Insolvency Manual. its value ; and it further appeared that there was no bidder at the i-aln, except the person who purchased the piano, it was held that the sale was a nullity, and that the owner was entitled torovendicate the property. — Nordheimer vs. Leclaire, 2 M. L. R. 446 ) Q. B. 1886. 867- The writ of attaclinient in revendication orders the seizure ot* the efleets revendicated, and that they be placed in tlu^ hands of guardians until judgment is rendered upon the revendi- cation. The name of tlie person upon whose affidavit the writ issues, is mentioned upon the back of the writ. SOS- The formalities j)rescribcd in articles 809, 836, 88(S, 847, 848, 841), 850 and 851, are observed in attachments in revendication, in so far as they can ap[)ly. . " GUYOT justifies this legal remedy in the fol- lowing terms : " Un immcuble ne pent pas soustrait aux re- " cherches de celui (jui le revendique, quand la " demande est legitime; mais il en est autrement " d'un nuaible, celui (^ui le possede pent ais^ment " le detourner ; il est done juste que celui qui " s'en pretend proprietairo puisse faire les actes " conservatoires convenables pour s en assurer la " restitution quand il aura justifiersa demande." 1 Rep. Vo. Actes conservatoires, p. 148. Civil Code, Article 1543. " In the sale of move- " able things, the right of dissolution by reason " of non-payment of the price can only be exer- Conservatory A ttachment. 49 " cised while the thing sold remains in the pos- " session of the buyer, without prejudice to the " seller's right of revendication as provided in the " title of Privileges and Hypothecs. In the " case of insolvency such right can only be exer- " cised during the fifteen days next after the " delivery." Coutume de Paris, Article 176. " Qui vend au- " cune chose mobiliere sans jour et sans terme, " esp^rant etre pay6 promptement, il pent sa " chose poursuivre, en quelque lieu qu'elle soit " transportee, pour etre paye du prix qu'il soit " transportee, pour etre pay^ du prix qu'il I'a " vendue.'" Coutume de Paris, Article 177. " Et neanmoins " encore qu'il eut donne terme si la chose se " trouve saisie. sur le debiteur par autre cr^an- " cier, il peut empecher la vente ; et est pr^f^re " sur la chose aux autres creanciers." Decisions. — I. The legality of a saisie-conservatoire ci\n- not be attacked by petition to quash ; the proper proceed ing is by way of exception Torrance vs. Thomas 2, L. C. J. 98;S. C. 1857. 2. An affidavit is not necessary to obtain the benefitof aconservatory attachment, which is based on the author- ity of article 177 Coufume de Paris and was not affected by the Ordonnances 1777 and 1795 which required affida- vits for the special seizures therein specified. Motions to quash,and an exception d la forme containing the same moyens, were rejected as illegal methods of attack, as against a conservatory attachment.— (Sinclair vs. Fergu- son ; Robertson vs. Ferguson ; Mills vs. Ferguson, 2, J. 101, S. C. 1857. 1. Civil Code, arts. 1998, 1999 cited supra p. 43-4. 50 Insolvency Manual. 3. The right to a conservatory attachment, in virtue of the Coutume de Paris, — not abrogated by Statute. Affidavit not necessary. — Leduc v. Tourigny, 5 L. C. J., 123. 8. C, 1861. 4. In an action by the vendor of goods sold and delivered, for the recovery of the price of sale, accom- panied by a saisie conservatoire of such goods, the Plain- tift" has a right to demand by the conclusions of his declaration, that the Defendants be condemned to pay the price of sale ; that the goods seized be declared sub- ject to a privilege in favour of the Plaintiff, as vendor, for such pi ice of sale, and that the goods be sold in due course of law and the proceeds paid to the Plaintiff' in satisfaction pro tanto of his claim as vendor. That where goods so seized, have been delivered to Plaintiff during the pendency of the suit, on his giving security that they will be forthcoming to abide the futur« order of the court, or the value thereof accounted for by Plaintiff, such value shall be held to be the value of the goods at the time of their deliveiy to the Plaintiff, from which date the Pluintiflf shfdlbe accountable, with inter est Baldwin v. Binmore, G L. C. J., 297. S. (;., 1861. The unpaid ven(lor who has sold for cash, has a right, under article 176, Coutume de Paris, to follow the thing sold wherever he can find it, if the purchaser fail to i)ay as agreed ; and that ni such a case a saisie conservatoire is a lawful remedy. — Duchesnay v. Wait, 8 L. C. J., 169, S. C, 1864. 6. L'ouvrier employe dans les chantiers de bois, en Canada, a un privilege sur le bois ainsi confectionne, et a droit a la saisie-conservatoire surles radeaux formes de ce bois Cot^ v. Graham, 3 R. L., 571. S. C. j 4 R. L., 3; v^. B., 1872. 7. Que le Code de Procedure civile, en dormant les moyens d'obtenir certains brefs, pour saisir avant juge- ment, ne limite pas les cas dans lesquels Ion pent ainsi Baisir j et n'empeche pas de recourir a la saisie conserva- toire pour saisir et arreter !'objet sur lequel la loi donne droit de gage et de retention. — Trudel v. Trahan, 7 R. b., 177. S. C, 1874. Conservatory Attachr)unt. 51 en 8. The unpaid vendor of moveables has a right, under article 1543 of the Civil Code, to deman'l the resolution of the sale, under the circumstances stated in that article, even after the expiration of the eight days allowed for revendication by article 1999. (But vide amendment to C.C, 1543 suprd.) In an action claiming such resolution, the plaintiff has a right to attach the moveables by a saisie conservatoire and, although his attachment may be in the nature of a saisierevendication, it will nevertheless avail to him as a saisie-conservatoire — Henderson y. Tremhlay, 21 L. C.J., 24; Q. B., 1876. 9. The holder of railway bonds, constituting a privi- leged claim on the moveable property of the company, may, for the protection of his rights, proceed against such property by an attachment in revendication in the nature of a saisie conservatoire. — Wyatt v. Sen4cal et al.. 4Q. L. R., 76; S. C, 1878. 10. The unpaid vendor has a right of action, under C. C. 1543, to rescind a sale of 473 half-chests of tea, for non-payment of the price, and to accompany his action bv a saisie conservatoire.— Lambe v. Hartlauh 4 L. N., 138; S. C, 1881. 11. The action began by saisie-conservatoire. Defen- dant met the affidavit by exception d Za ybrme, which was dismissed as not bfing the mode indicated by the Code for attaking the affidavit. The party moving cited Leslie & Molsoji^s Bank, 12 L. C. R., p. 205. The Court, without expressing atty opinion as to whether the Code had alteied the law since the decision referred to, refused leave to appeal, on th»^ ground that the party moving had a more expeditious mode of pri)- ceeding than by exception a la forme, fmd that therefore nothing but delay would result from granting the appeal. —Lebel vs. Pacaud, 2 L. N., 202 ; Q B., 1879. 12. An affidavit such as is required by the Coie for a aaisiearrH before judgment, is not necessary for a saisie- arrit conservatoire, which is a common law process, and cannot be attacked by petition to quash. — Burnett Vi. Pomeroy ei al.t 7 L. N., p. 110, S. C. 1884. 62 Insolvency Manual. 13. Aucune loi positive n'exige la production d'une deposition pour obtenir un bref de saisie conservatoire, dans les cas oii ce bref peut emaner ; et celui qui se pre- tend proprietaire d'actions de banque, et qui a raison de craindre qu'on ne fasse disparaitre ces actions, peut join- dre a une demande pour etre declare proprietaire de ces actions, une saisie-arret conservatoire. — Eraser vs. Mc- Tavish & Bank of Montreal, 15 li. L., 200, S. C. 1887. 14. Where the action r4solntoire exists, it may be exer cised quoad any portion of the goods remaining in the possession of the ven he drrnrn in duplicate nnM. 57 r. FORM C Notice o ihandownie'id (Art. 705), I For advertisement.! Province of Quebec, District of > Sujjerior (/Oiirt, Creditor, va. !'■, . /Jehtor. Notice is hereby given that I, tUtt under- ^igried of in tlie District of , did. on tJie day of 188 , in the office of the prothofiotary of the Superior Court in the District of , make a judicial abandoniii<*nt ,>f my property for the benefit of my creditorn, , this day of \HH . Signed at Note : In default of this notice being givftn hy the debtor, any creditor may give it himself. Art, 7«/>, nupra. {Signature of tUhUrr,) ■ I 68 Insolvency Mamud. FORM D D('7tui7)il of Ahawhmmpitt. (Ai't 70(1). c 1 ' [■ Snprnor (\»in't, A. R, Phnnt'iff, Provincr of Quohec, DiHtricfc of fs. G. I)., Defnnlunt. To ('. I), tlu' said DetVinlant. Hill. Thc! ii, n }nl Ji rtii nume nf pet ilia uer), Fotitionor. To any ot* tlio lloiioiiraldc .lud^^'cs of this com-t, tlic petition of tiu! said pptitioiicr hnnibly sliowoMi. Tlwit on tilt' .Iny of instatit 188 , the said debtor did mnUc^ an alumdonnH'iit of his property, for th(< hcncHt of his creditors. That it is advi.sahh^ tiuit a nu^ctinnf of tlu< said cri'ditors Uv. forthwith held, to advise as to tho a])pointiuent of a curntoi-, and inspectc/rK and advisers, nccoi'dinjn* to hiw. Wherefoj-e petitionei' prnys, lluU a meeting of the creditors of the smd dehtor. he Forthwith caHed, to appoint the sni»l curMtor, and if deoinod advisahle, insijectors or advisers, th*' wlioU^ in such manner as to yonr lionour may seem fit, with costs of thesis pi-esents (tlstndtn to the un(hM*- signed attorney. 188 . A ttorneif for petitiotifv. i^ > 60 hmolvency Manual. FOR.Vt F Notice of Meeting of Creditors (Art. 768). ' [ Superior Court. Province of Quebec, District of Debtor. and Petit ion ev. The said debtor, having made a judicial aban- donment of his property for the benefit of his creditors on the day oi 188 , the creditors of the said debtor, are notified to aieet in the office of the undtTsigned prothonotary, on the day of 188 , at o'clock in the noon to advise as to the appointment of a curator, and inspectors or advi- sers herein. Signed at , this day of 188 . {Signature of prothonotary). \\ A ppendix. — Fornif*. 61 FORM G Notice, to .nclzl'fK) Creditor, It is Attorveu or Bailijf (Art. 769). Province of Quchec, District of No. ' \ Superior Couit. ?;.s. Plaintiff'. Defendant. You are hereby notified, in accordance with article 709 of the Code of Civil Procedure, that on the day of 188 , the said E. F., of {state narn,e, address, and occupation of curator) was by judgment of {name court or judge), duly appointed curator to the property of the said C. D., of {residence or domicile, and occupation of the debtor) defcmdant herein, abandoned by the said C. D., for the benefit of his creditors, the whole as by said Code provided. And you are hereby notified and required to govern yourself in the premises accordingly. Signed at , this day of 188 . E. F., Curator. f w 'iinii' 62 Insolvency Man nul. FORM H Notice of Appointment hy Curator (Art. 770). ^' [ Superior Court. No. Province of Quebec, District of and Debtor. and Petitioner. Curator. Notice is hei'eijy oiven, in pursuance of article 770 of the Code of Civil Procedure, that on the (hxy of 188 . 1 the said E. F., of {descrilte, curator), was by judgment of {des- cribe coiirt or jud(je in question), appointed curator to the property of the said C. D., of {residence or donncUe, and occupation of the debtor), debtor in this matter, the whole as by said Code provided. The creditors of the said are hereby notified to file their claims with me, within a delay of thirty days. Signed at , this day of 18 . E. F. Curator. I m Ap2)eii dix. — Forms. G3 FORM I Curator's Warrant to Sheriff {Art. 772). Province of Quebec, ) o • ^ District of , j Superior Court. No. Debtor. »t and Petitioner. Curator. To -, Sheriff of the District of Sir, I, the undersigned , Curator duly ap- pointed, by order of {state court or judge), of date of the day of 188 , to the pro- perty of the said defendant of {residence or domicile, and occupation of debtor), and authorized {or commanded) by order of \state court or judge), do hereby require you, under Art. 772 of the Code of Civil Procedure, to seize and sell, in accordance with the provisions of the said Article 772 the following immoveables, heretofore the property of the said debtor. {Describe immoveables). Signed at , this day of 188 . E. F., Curat f)r. I I 64 Insolveney Manmd. Ih' FORM J Notice of prepartUion of dividend shfHs (Art. 772^/). ' {• Superior Court. Creditor. Province of QueV)ec, District of vs. Debtor. and E. F., Curator. I, the undersigned E. F., Curator, duly ap- pointed to the property of the said E. F., debtor, do hereby ^ive notice that a dividend sheet has been prepared in this matter pursuant to article 772a of the Code of Civil Procedure, payable within fifteen days from receipt of this notice and that all persons are required to govern themselves accordingly. Signed at , this day of 188 . E. F., Curator. •I ri! To fyle claincK. 65 Province of (Quebec, District of FORM K Fmin <>f(Jl(ilnt (Art. 770). i Superior Court. V8. and Petitioner. Debtor, and Curator. 1, G. H., of depoRo and say : Cldiviant, bein- of the return of said writ, to answ(u- the said plaintiti* of a certain debt, interest, and costs amounting to the sum of Given under my hand and seal, this )<;ftndant - .i^ and still is, well and truly and personally indebted to said Plaintifl' in a suin exceeding five dollars currency, to wit, in th- Hunj of dollars and cents currency, being as and for (Here state succinctly, the came of indebted- nebn) That the said Defendant is about immediately to leave the province of Quebec with intent to Aj^davit for Attach mejit. n dH and ^rff'ectH of the said Defendant, the sai<] PlaiiitiH' will lose his dcht and sustain damage. That said Defendant is secreting and makifig aWH; with or is about to secr«'te and niak** u^f,^y' with Ids goods and efiects, with ittUttd U) defraud his creo«i- H'-HHion, and in the hands and possession of ihc. Haid tiers saisi, said Plaintiff wiii be drprivc^l of his retnedy, will lose his debt, and ^-nntain great loss and damage, and dej)on«'iit hath >'ign(;d, Sworn, taken and acknow-1 h? H A, H. of «'tc. {Ih'srripfion) w. ( !. I), of etc. ( hcsiriptiou) lH how suspended 76!> ATTACHiMKNT HEFOIIK JUDGMENT. Siviple ultachvient (ar7'6t simple) how suspended 1 (i!) in what cases a creditor may cft'cct, and how 8.U if claim be for unliquidated diinuiges JudKc'!^ order reciuired SiJo atlidavil necessary 835 how elFected 83t< may issue during long vacat ion tenor of w. it 83fi amount r.iust bo oiidor.uid oti writ 837 by vvhou) ;at whose request is.'sutid, and how tested . 838 clerk of circuit court lUMy issiu! 839 how sei'.ure is elPected; muy be made in another district 841 warrant .)f atta()iutcd 851 service if defendant be absent or concealed 852 how defendant may tjblain restoration within forty eight hours 853 ) 81() \ni not contoHtod, JudR- mcnt is ronderod oi> l)()t,h atta<-limcnt and it procoedin^H if tho pluintill' or dofundant con-) test declarat ion ' foroclosuro of plaint iir from contcstinK AiTACHMKNT IN KKVICNI)l(lATION:-Wlio may exercise riKht, atlldavit required tenor of writ ; ncc^ossary cndorHation formalities of issuing of execution ; of sorvlco and return 868 when efTects may be roturiu'd to poBHOHsion of defendant, and when may be delivered to plaintiff. 8fl9 inventory may be rociuired lutfore such delivery. . . 870 if neither party demand etrecits, they remain with guardian or sequestrator 871 if things seized bo of a perishable nature 872 Art. P»K«>. 856 39 856 39 855 39 858 41 859 41 860 41 861 41 882-6 41 819 28 864 41 866 43 867 46 3AlL-8 20 against trader who refuses to assign 7!>i> 23 t Index. CAPlAH.-iContinued.) ^^^ against debtor deteriorating iinmuveable SW) for unliquidated dainagea ,^(j, may be joined with summons or issued afterwards. 802 may issue after judgment ,j, amount demanded and name of deponent must be endorsed on writ gQo declaration may be served 3 days afterwards and ^«w 804 against whom it cannot issue §05 cannot issue for foreign debt gQ^j nor for any debt und«u- $10 ff^ affidavit may be made by several persons ; how and before whom ^q^ Superior Court alone has jurisdiction gog may be issued by Clerk of Circuit Court 810 addressed to sheriflF or bailiff : how executed 809 warrant of arrest by commissioner 312 only when established by affidavit that capias cannot be obtained from prothonotary 812 formalities attending warrant 313 imprisonTuent under warrant 814 duties of coumiissioner gjg Execution of Writ : -duties of bailiff or sheriff. 816. 818 Contestation of Cajjias ; —hy petition in term or vacation : contents of petition gig immediate return of writ u'ay be ordered 820 contestation how disposed of §21 appeal allowed g22 if discharge of debtor is ordered, the same may be suspended g23 plaintilt may appeal or have decision reviewed ... ib. Diac/Kt rye upon Bail how dcfeiulant may obtain 824-6 delay for receiving bail g21 notice of offering bail ^26 sureties must j ustif y, if required g27 provisional discharge, how obtained 828 liability of sheriff g2y how sheriff may free himself g^d sureties may arrest defendant 331 neriff may demand requisition , 832 if sureties foar resistance g33 CESSION DK BIENS-(Vide Abandonment) 77 HaKc. ■n ■'•^ ih. if^ 2/» '2!> 2.i ib 26 26 26 26 26 26 27 27 27 27-8 28 28 28 •28 29 ih. :«► 21) 31 31 31 32 32 32 32 32 lb i.i ; 78 Index. CIRCUIT COURT. Art. Page, clerk of, may issued capiaa 810 26 CIVIL CODE. Article 17 cited 1 *• 1036 " 17 •' 1092 '* 3 " 1543 " 48 " 1938 " 30 " UK)8 " 44 " 1999 " 45 " 2005 •' 26 " 2023 " 13 " 2272 " 10 CLAIMS. when filed 770 8 how filed Form K 65 COERCIVE IMlMlISONMENT-lVide Imprisonment) COLLOCATION. costs incurred after notice of abandonment, not col- located 769 7 COMMISSIONER. may is8\ie warrant of arrest 812 26 duties of, in Huch case 813 27 aflldav it for capias may be made before 807 26 may issue warrant of attachment 842 38 effect of warrant of attachment 843 36 CONSERVATORY ATTACHMENT. 48 based upon Coutume de Paris and Civil Code 1543. . 48 decisions 48 CONTESTATION. of claims or dividend sheet 772a 13 of statement 773 16 delay to file contestation ib 16 proof of 774 17 proceedings are summary 772o 13 COSTS. of attachment or seizure, after notice of abandon- ment 764 4 of abandonment, rank after lessor's privilege 14 tariffof 68 f 1 17 3 48 30 44 45 25 13 10 8 65 26 27 26 36 36 48 48 49 13 16 16 17 13 4 14 53 Index, 79 COUTUME DE PARIS. . , „ . . ^ Art. Paife. right to conservatory attachment based upon 4^ CREDITORS. convened to advise fi8 to curator 7gg must file claims within 30 days after notice... 770 h creditors may contest statement " '773 .<. unsecured for $200 may demand abandonment.'.'."."."! 763a 3 CURATOR. howappointed ^^ notice of Appointment ".'..''^.. . ! . . ." " Form H 62 may talto possession of goods seized 769 7 advertises his appointment ... '.".".'."" " 77,, ' registered notices to creditors ' ,7, ,, may bo required to give security . . ............'. . . .' 770^ y subject to imprisonment and summary jurisdic \ ib 10 tion of court ; duties and powers of i 7719 1,, may sell im ino veablea, and how 771..," j„ must prepare dividend sheets . . 772^" y^ notice of dividend sheets ',..,\ j-^ ,!> exercises rie-hts of debtor and creditors .... 772 in may sell debts, &c ' ^^ .^^ can revendicate CONTRAINTE PAR CORPS. {Yi^Q Imprisonment.) 776 17 DAMAGES, UNLIQUIDATED. capias may issue for gQj 23 attachment for g^^ „, DEBTOR. arrested under capias, may make a judicial aban- donment 7g, J must give notice of abandonment 765 5 admitted to bail, must lie statement 766 5 if in gaol,, may make abandonment at any time ... . 767 6 attachments against, suspended after abandon- ment ygg y entitled to notice of seizure of immoveables 772 10 must attend before court or iudge 775 17 DECLARATION. by debtor must accompany abandonment 64 4 in capias matters how served 804 26 IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 1.25 ^■^ 1^ I: 1^ 1 2.2 2.0 1.8 L4 lllill.6 V] <^ /^ ^;. V /A Photographic Sciences Corporation 4 •^ \ ,v 73 WEST MAIN STREET WEBSTER, N.V. 14580 (716) 872-4503 •^ \\ '<^ V >>^ «: i ' !' I (' ! , '^ < ;!■! 80 Index. DELAYS. Art. Page. to tile creditor's claims 77(» 8 preparation of dividend sheet 772(/ 13 to debtor admitted to bail, to file Rtatornent 776 17 to creditors to contest statement 773 16 to prove allegation of contestation : 4 months 774 17 may be extended two months 774 17 proceedings on contestations are summary 772a 13 DEMAND OF ABANDONMENT. when necessary , 763 2 766 6 iO(m of , Form D 58 DEi?i*i::ii EQUIPEUR. rifr*" to attachment before j udgment 834 34 DISCUSSION of debtor before demand of abandonmenf, in cer- tain cases 766 S DISTRIBUTION. of assets of debtor by v iirator 772 10 DISCHARGE. of debtor if contestation not proved 771 10 to what extent debtor is dischargfid by nbandon- ment 779 18 DISTRICT, where abandonment must be made 764 4 DIVIDEND SHEETS. when prepared and payable 772a 13 may be contested , ib ib contestation summary ib ib EXAMINATION. of debtor before court or judge 77.*) 17 EXEMPTION, of certain persons from arrest under capian .-. 805 25 EXECUTION. how suspended 769 7 of curators warrant against immoveable* 772 10-15 Index. 81 Art. Page. FORMS 55 FOREIGN DEBT. Capias cannot issue for 806 2f FRAUD. Btatoinent may bo contest ^d for fraudulf^nt n\isrep- rosontation 773 16 proforonco to one creditor amounts to 16 equivalent to secretion 16 (Vide Secretion) GARNISHEE. doclHlons as to 40 what writ requires of 856 39 GUARDIAN. GUYOT,