Background: This involved entitlement to proceeds from an auction sale of cattle based on ownership and secured creditor interests.

Legal Issues: The court determined if sales were in the ordinary course of business, the validity of security interests under the Personal Property Security Act (PPSA), and the identification of cattle owned by various parties. JGL obtained a Mareva injunction in October 2022, freezing the defendants' assets and leading to the auction of 1,265 cattle with net proceeds of about $1.2 million. This auction followed disputes over transactions where cattle were allegedly sold by the defendants, many of which did not exist.

Ownership Claims: JGL claimed proceeds for 612 cattle, including 116 third-party cattle. Martin Livestock Ltd. claimed ownership of 142 branded cattle and 89 unbranded heifers. Titan Livestock Inc. and Bear Spring Ranch Ltd. claimed ownership of branded and unbranded cattle, including calves. Secured creditors Royal Bank of Canada (RBC) and Fusion Credit Union opposed other claims, asserting their security interests.

Court Findings: The court deemed sales to JGL in the ordinary course of business. JGL proved ownership of 116 third-party cattle, 117 mixed cows/yearlings, and 20 cows from Reedy Creek Pasture. Martin Livestock proved ownership of 142 branded cattle and 89 unbranded heifers. Titan Livestock and Bear Spring Ranch proved ownership of branded and certain unbranded cattle. Calves were allocated proportionally to the proven ownership of cows.

Total Amount of Costs/Awards: Amounts were not detailed, but the court allocated proceeds based on ownership claims and proportional distribution of calves.