BODKIN LEASING CORPORATION v MIGHTY MOOSE HOLDINGS LTD

The Plaintiffs commenced an Action against the Defendants due to the Defendant’s default of a financing lease for a semi-trailer truck. The Plaintiffs had seized and sold the vehicle and applied the net proceeds to the debt, and then sued for the balance owing. The Defendant lessees were noted in default. The Plaintiff applied ex parte to the Court for Judgment pursuant to Rule 3.37. The Court adjourned the ex parte Application and requested written argument on the issue of whether a portion of the amount being claimed was an unenforceable penalty. Following a review of the written argument, and citing prior Alberta case law, Master Prowse held that the acceleration clause was arbitrary, unconscionable, and an unenforceable penalty. The Application was dismissed.