Marcel Desrochers endured several years of stress and mounting legal bills to keep his homestead and a quarter section of land near Pilot Mound, Man.
He was convinced that the Manitoba Agricultural Credit Corporation had sidestepped the law in its bid to foreclose on his farm. And he wasn’t prepared to walk away without a fight.
Although the battle went all the way to the Supreme Court of Canada, Desrochers got what he was looking for.
The Supreme Court has ruled that MACC disregarded the law by failing to honor a 30-day stay granted to Desrochers by the federal Farm Debt Review Board.
Read Also
Powdery mildew can be combine fire risk
Dust from powdery mildew can cause fires in combines.
The stay, issued in January 1994, was meant to keep creditors at bay while Desrochers tried to sort out his financial affairs. But MACC took the first steps toward foreclosure within two weeks of the stay being granted.
The Supreme Court ruling put ownership of the homestead and 160 acres back in Desrochers’ hands. MACC must also cover part of the farmer’s legal costs, which rose to more than $100,000 during the five-year battle.
“It’s cut and dried,” said the Pilot Mound farmer. “The law is the law and they’ve got to comply.”
The Supreme Court gave its judgment last January. Its reasons were released this month.
MACC general manager Gill Shaw was not available for comment.
Setting precedent
Desrochers’ lawyer believes the case offers a landmark ruling for farmers in similar circumstances across Canada. John Myers said it makes clear to banks and other creditors what they can and cannot do once a stay has been granted.
Desrochers plans to pay back the $14,250 in principal owed to MACC. However, he does not feel responsible for the interest that accrued while his case wound its way through the courts.
“I guess that’s theirs to swallow.”
Desrochers said he will now turn his attention to other matters. He wants to win back 480 acres of land that was foreclosed on by a second lender. That land has since been sold to another area farmer.
