Nov 18, 2014

Summary of Robie Financial Inc. v. Pye

Robie Financial Inc. v. Pye, 2009 NSSC 397 (CanLII)

On May 15, 2008 Sunset leased an all-terrain vehicle to Mr. Pye. On March 19, 2008 Sunset assigned the lease to the applicant who proceeded to register a financing statement pursuant to the PPSA under the name “Pye, Barry,” and included the vehicle’s serial number. A search made on October 1, 2009 using the search criteria “Pye, Barry Kevin” gives no results. The collateral is serial-numbered consumer goods; the VIN number was registered correctly pursuant to the financing statement. Is there a dual search requirement when dealing with serial-numbered consumer goods under the NS PPSA? Yes.

The scope of defects that can be seriously misleading is wide. However, is one searches the correct name for registration purposes in the registry and it produces neither an exact nor a near match, then the defect is seriously misleading. The proper name for the debtor is “Pye, Barry Kevin.” A search under this name does not produce a financing statement re the vehicle in question, nor were there any near matches given. A reasonable searcher would not take any additional steps in NS after the name search does not produce any results when the collateral is serial-numbered consumer goods.

In NS, the dual search requirement for serial-numbered consumer goods is rejected. If the name is registered incorrectly and does not yield any near results, then the defect would be seriously misleading to the reasonable person.