Background:

• The Applicants, creditors of a failed brewery, Inner City Brewing Company Inc. (ICB), purchased the secured debt owed by ICB to Bank of Montreal (BMO).
• They sought to enforce their security under s.62 of the Personal Property Security Act (PPSA) by taking and selling ICB’s equipment.
• Before the equipment was removed, the Respondent, ICB’s landlord, seized it for unpaid rent (distraint).

Key Legal Issues:

1. Validity of the Applicants' Claim under s.62 of the PPSA:
   • The Applicants failed to involve a civil enforcement agency as required by the PPSA, rendering their attempt to seize and sell the equipment invalid.
2. Landlord’s Right to Distraint:
   • The court held that the Respondent was entitled to seize the equipment to recover rental arrears as the Applicants' actions were invalid under the PPSA.

Decision:

• The Applicants' application to set aside the Respondent’s distraint was dismissed. The Respondent may proceed with distraint in accordance with the PPSA.
• There is no specific amount for costs awarded in the decision.

Conclusion: The Applicants' attempt to enforce their security interest without using a civil enforcement agency was invalid under Alberta law. The landlord’s distraint for rental arrears took precedence.