18 Jul 2024
Royal Bank of Canada v. Sakthivel
Key Facts:
- RBC filed a motion for the release of funds up to $812,000 from a BMO account.
- RBC claims ownership of these funds, asserting they should be released without the usual judgment enforcement processes.
- RBC has a judgment against Justwing and Terra Metals Inc. for $966,658.19 plus costs.
Background:
- Sakthivel, the sole director of Terra Metals, deposited four dishonored cheques into an RBC account and transferred the proceeds to other accounts, including the BMO account.
- RBC claims Sakthivel controls both Terra and Justwing.
Legal Arguments and Findings:
- RBC argues for a consent motion but provides no evidence of consent from the Defendants.
- RBC has frozen the BMO account funds but acknowledges this does not grant them rights to the funds.
- RBC lacks statutory or common law authority to claim the funds exclusively.
- No execution search evidence was provided to show other potential claims against the funds.
- RBC's approach bypasses the usual judgment enforcement process, which includes seizure and garnishment.
Decision:
- The motion for releasing the funds to RBC is dismissed.
- Justice Kurz highlights the absence of evidence and authority supporting RBC's claim to bypass standard procedures.
Conclusion:
- RBC must follow the ordinary process for enforcing its judgment, including serving a writ of seizure and sale or a notice of garnishment on BMO. The motion was dismissed due to insufficient evidence and lack of legal authority to claim the funds directly.
- No additional monetary award or costs were granted/ordered in the dismissal of this motion.