Summary:

• Receivership: MNP Ltd. appointed as Receiver over FMPC and related companies. Assets were sold, with proceeds used to repay creditors.
• Claims Procedure: A Claims Procedure Order was authorized to manage creditor claims on the companies' personal property.

Key Issues:

1. Priority of Claims on Leased Equipment: Determination of whether RBC or Patterson Dental Canada Inc. (Patterson) has priority over the sale proceeds from equipment leased by 52 Dental.
2. Nature of the Master Lease Agreement: Assessment of whether the lease between Dr. Mouhamad and 52 Dental is a true lease or a financing lease.
3. Advantage Credits Ownership: Clarification of whether the loyalty credits used by Dr. Mouhamad for equipment purchase belonged to FMPC and were improperly transferred.

Court's Findings:

• Priority Claims: Patterson’s security interests, perfected in May 2022, have priority over RBC’s interests.
• Master Lease Agreement: Determined to be a true lease. The equipment remains Dr. Mouhamad's property, and Patterson retains its security interests.
• Advantage Credits: The credits were FMPC's property, improperly used by Dr. Mouhamad. $51,823.59 from the sale proceeds must be paid to RBC.

Outcome:

• RBC to pay costs to Patterson under schedule C of the Rules of Court.

Summary of Monetary Awards

• Total Sale Proceeds: $417,000
• RBC Award: $51,823.59 (related to the Advantage Credits improperly used by Dr. Mouhamad)
• Patterson Award: $365,176.41 (balance of the sale proceeds after payment to RBC)
• Additional Costs: RBC to pay Patterson’s legal costs (amount not specified in the document).