Contract - Conditional Sale - Farm Equipment, Contract - The Saskatchewan Farm Security Act
The Shewchuks entered into a conditional sales agreement (CSA) to purchase a combine and header (equipment). The seller assigned all rights under the CSA to De Lage Landen Financial Services Ltd. (DLL). The Shewchuks fell into arrears in their payments, and DLL sought to take possession of the equipment. In compliance with The Saskatchewan Farm Security Act (SFSA), DLL served the Shewchuks with notice of its intention. As allowed by the SFSA, the Shewchuks applied to the court for relief. The sale price for the equipment under the CSA was $115,000.00. At the time of the application, the Shewchuks owed DLL $79,000.00 and were in arrears in the amount of $26,000.00.
HELD: The chambers judge was required to apply s. 53 of the SFSA, which broadly allowed him to do what was just as between DLL and the Shewchuks, including ordering that DLL take possession of the equipment, but suspending the effect of the possession order pending payment of an amount by the Shewchuks. The Shewchuks were required to pay $10,000.00 to DLL before the expiry of two months, failing which the possession order would be executable without further process. If the payment were made, the matter was to be brought back before the chambers judge, and the Shewchuks would be required to convince him that they had a concrete plan to make the contracted payments and so stave off the loss of the equipment. The chambers judge was guided by the authority of Naber v John Deere Financial Inc., 2020 SKCA 94, which adopted the reasoning in Bartko v Odnokon Holdings Ltd., 2012 SKQB 262.