Seizure of RRSP (Enforcement Proceeding)

Collins Barrow Leamington LLP v Tiessen, 2014 CanLII 72252 (ON SCSM)

53. I find that an RRSP investment does not constitute a debtor-creditor relationship, but it is personal property of the beneficiary. For the foregoing reasons, I must regrettably find that an RRSP cannot be seized by a Notice of Garnishment, but that any such seizure must take place by way of a Writ of Seizure and Sale of Personal Property.

55. Small Claims Court Rule 20.08(17) provides:

If the garnishee does not pay to the clerk the amount set out in the notice of garnishment and does not send a garnishee’s statement, the creditor is entitled to an order against the garnishee for payment of the amount set our in the notice, unless the court orders otherwise. (emphasis added)

56. Application of the Rule and corresponding caution is not absolute. It is expressly subject to the discretion of the Court which is able to order otherwise. In exercising such discretion, the Court can and should look at the conduct of the parties and make such order as is considered just and agreeable to good conscience.

57. In doing so, I have particular regard to the 3 letters from the Garnishee which I have included as Appendices to these Reasons. The Garnishee submits that the letter dated September 4, 2013 is a substitute for or constitutes sufficient and substantial compliance with the requirement to provide a Garnishee’s Statement after being served the Notice of Garnishment dated August 16, 2013. I simply cannot agree with this position.