Smiley Farming Co. Ltd. v John Deere Financial Inc.
Smiley Farming Co. Ltd.
Law Firm / Organization
MacDermid Lamarsh
John Deere Financial Inc.

Background:
Smiley Farming Co. Ltd. (SFL) appealed a decision from the Saskatchewan Court of King’s Bench, where John Deere Financial Inc. (JDFI) was granted possession of a 2009 John Deere 9630T RW Track Tractor. The dispute arose over ownership claims and security interests, with SFL asserting a verbal rent-to-own agreement with the Palins, while JDFI claimed a registered security interest under The Personal Property Security Act (PPSA).

Legal Issues:
The key issues included:

  • Whether JDFI’s application for possession was time-barred under The Limitations Act.
  • Whether the matter required a trial or could be resolved summarily.
  • Whether SFL had established an enforceable agreement for the sale of the Tractor.
  • Whether JDFI held a perfected security interest.
  • The appropriateness of awarding costs to JDFI.

Court's Findings:
The Court dismissed the appeal, finding that:

  • JDFI’s application was not time-barred as the PPSA proceedings were exempt from the limitation period.
  • The Chambers judge correctly decided the matter summarily, given the thorough cross-examinations and lack of need for a trial.
  • SFL failed to prove the existence of a binding agreement for the Tractor’s sale.
  • JDFI’s security interest was valid, and whether it was perfected was immaterial.
  • Costs were appropriately awarded to JDFI, as SFL unnecessarily prolonged proceedings.

Costs Awarded:
The Court awarded JDFI costs on Column 2 of the Tariff, in line with standard calculations.

Court of Appeal for Saskatchewan
CACV4392
Corporate & commercial law
Respondent