On June 5, 2003, the Supreme Court of Canada concurred with Fasken Martineau, represented by Christian Trépanier and P.-Michel Bouchard from our Québec City office, in a judgment that will have a considerable impact on the business community.
The highest court in the country ruled that financial institutions can pledge amounts held in a trust-style registered retirement savings plan as security. This possibility had been abolished by a judgment handed down by the Court of Appeal of Québec in January 2001. The Supreme Court's judgment will also allow any natural person who is not operating a business to grant a movable hypothec with delivery on claims, regardless of whether or not they are represented by a negotiable instrument (in this case, a certificate of deposit). This conclusion, which allows a claim not represented by a negotiable instrument to be pledged as security, has put an end to the debate that has been opposing Quebec authors of sureties and hypothecs.
The case was heard before the Supreme Court on November 6, 2002. Fasken Martineau represented the appellant, Caisse populaire Desjardins de Val-Brillant.
Caisse populaire Desjardins de Val-Brillant v. Blouin, 2003 SCC 31 (CanLII)