Non-payment by Dealers

The Livestock Identification and Commerce Act requires purchasers and livestock dealers to pay for livestock within two business days of price discovery or possession, whichever is later. Unfortunately, not all of them will pay within this timeline. The civil law provides remedies for non-payment by purchasers, and LICA includes remedies for sellers in the event of non-payment by livestock dealers, and remedies for livestock dealers in the event of non-payment by unlicensed purchasers.

If you supplied or sold livestock to a livestock dealer or a livestock dealer's agent and did not receive payment of the sale proceeds, then you must contact LIS as soon as is reasonably possible, and provide us with any information we require in respect to of the transaction.

Default by a Livestock Dealer

LIS will do an investigation as to whether the non-payment is a result of a default on the part of the livestock dealer. When there is a contractual dispute, we will not proceed our investigation further until the person supplying or selling livestock to the dealer has obtained a final Court judgement against the livestock dealer for the non-payment.

If we are satisfied that a default has occurred, then we will do one or both of the following:

• Suspend or cancel the license of the livestock dealer.
• Publish a notice about the default to get the attention of any people who may supply or sell livestock to the livestock dealer or to the livestock dealer's agents.

Making a Claim

Every person who makes a claim against the livestock dealer must provide a statement outlining the default, a statement of account showing the amount owing and any other supporting documentation by which the default and the amount owing can be verified. Once all claims are submitted, LIS will make a decision on who is entitled to share in the proceeds of the security provided by the dealer and the amount of each person's claim, as well as pay the proceeds.

A person whose claim against the livestock dealer's security is refused by LIS may appeal the decision to the Livestock Assurance Fund Tribunal. If the claimant disagrees with the decision of the Tribunal, then they have a further right to appeal to the Court of Appeal of Alberta.