Executive Summary: Key Legal and Evidentiary Issues

• Honda Canada Finance Inc. sought revendication of a Honda CRV from TVN Transport Inc. under an instalment sale contract originally entered into with Openroad Honda.
   
• Publication of the plaintiff's rights with the Register of Personal and Movable Real Rights on December 22, 2025 supported the ownership claim.
   
• Service of the originating application by public notice occurred roughly one month after the prejudgment seizure, exceeding the five-day deadline under article 521 of the Code of Civil Procedure.
   
• No explanation for the delay was pleaded in the originating application, contrary to the usual requirement to allege and seek relief from such a default.
   
• An Ontario bailiff's report showing the defendant could not be located supported relieving the plaintiff of its procedural default.
   
• TVN Transport Inc. did not respond to the proceeding, resulting in an application for default judgment.

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Facts of the case

Honda Canada Finance Inc. brought a revendication application against TVN Transport Inc. concerning a Honda CRV purchased under an instalment sale contract, Exhibit P-1, originally entered into between Openroad Honda and TVN Transport Inc. in Ontario. Openroad Honda's rights under the contract were assigned to Honda Canada Finance Inc., and those rights were published with the Register of Personal and Movable Real Rights on December 22, 2025, Exhibit P-2. A prejudgment seizure of the vehicle was carried out on February 19, 2026 and filed with the Superior Court registry on March 18, 2026 [source states the originating application was served on the defendant by public notice one day earlier, on March 17, 2026 — the source does not explain this sequencing]. TVN Transport Inc. was served with the originating application by public notice on March 17, 2026. TVN Transport Inc. did not respond, and Honda Canada Finance Inc. filed an application for entry of default judgment on May 27, 2026.

Policy and legislative provisions at issue

The contract, Exhibit P-1, gave Honda Canada Finance Inc. (as assignee of Openroad Honda's rights) ownership of the vehicle until full payment of the debt. The central procedural provision was article 521 of the Code of Civil Procedure, which requires that notification of an originating application follow within five days of a prejudgment seizure. Here, the delay between the seizure and notification by public notice was approximately one month, and the originating application contained no allegation explaining the delay or seeking relief from the resulting default, a gap the court noted is normally required and referenced the precedent in Groupe Rovin inc. c. Gestion Moisandré inc., 2019 QCCA 1680.

Reasoning and analysis

The special clerk found that TVN Transport Inc. was in default of its obligations under the instalment sale contract, based on the sworn statement submitted. Despite the absence of a pleaded explanation for missing the five-day deadline under article 521, the court relieved Honda Canada Finance Inc. of this default on her own initiative, relying on the Ontario bailiff's report indicating that TVN Transport Inc. could not be located. The court nonetheless flagged the procedural gap, reminding the plaintiff that future applications must include an allegation and a conclusion seeking relief from default whenever the five-day notification deadline is not met.

Ruling and overall outcome

The court granted the originating application in favour of Honda Canada Finance Inc., relieved it of its default under article 521 of the Code of Civil Procedure, and declared the prejudgment seizure good and valid. The court declared Honda Canada Finance Inc. the sole and exclusive owner of the Honda CRV bearing serial number 2HKRS6H78SH223723. The judgment awarded legal costs to Honda Canada Finance Inc. without specifying a dollar amount.