Brad Paddison Contracting Ltd v Minto Metals Corp
MINTO METALS CORP.
Law Firm / Organization
Unrepresented
BRAD PADDISON CONTRACTING LTD.
Law Firm / Organization
Dentons Canada LLP
Lawyer(s)

Morgan Burris

Sumitomo Canada Limited
Law Firm / Organization
Fasken Martineau DuMoulin LLP
Lawyer(s)

Kibben Jackson

  • Case Background: Brad Paddison Contracting Ltd (BP Contracting) filed a petition against Minto Metals Corp due to unpaid work amounting to $404,291.39 at the Minto mine. BP Contracting had placed a lien on the copper ore concentrates, which were sold to Sumitomo Canada Limited, a third party that also held a secured lending position with Minto Metals.

  • Legal Issues:

    1. Whether BP Contracting's lien had priority over Sumitomo’s ownership interest, given the concentrates were sold after the lien was registered.
    2. If Sumitomo, who bought the concentrates without notice of the lien, could be considered a bona fide purchaser, thus discharging the lien.
    3. The interpretation of specific terms of the Miner’s Lien Act, particularly regarding the effects of lien registration and the rights of subsequent purchasers.
  • Court's Findings:

    • The lien was valid and did attach to the concentrates while under Minto Metals’ control.
    • Sumitomo was deemed a bona fide purchaser for value without notice of the lien, primarily due to insufficient notice from BP Contracting. As such, the lien was discharged upon the transfer of title to Sumitomo.
    • The court did not need to determine which specific 60-day period applied for calculating the amounts owed under the lien due to the resolution of the other issues.
    • The decision on costs was deferred.
  • Conclusion: The court resolved the competing claims by upholding the bona fide purchaser defense, favoring commercial certainty and investment protection over the lien claim due to notification shortcomings.

Supreme Court of Yukon
22-A0125
Civil litigation
Other