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Holmes purchased a refrigerator and stove from Watts Electric Ltd. under a conditional sale agreement. Watts Electric Ltd. discounted the contract with Domestic Finance Co.

Holmes purchased a refrigerator and stove from Watts Electric Ltd. under a conditional sale agreement. Watts Electric Ltd. discounted the contract with Domestic Finance Co. Neither Watts Electric nor Domestic Finance registered the agreement. Several months later, Holmes sold the appliances to Fischer for cash, without disclosing that there was still an unpaid balance owing to Domestic Finance, and left the province. After Holmes defaulted payment, Domestic Finance discovered that Fischer had possession of the appliances and repossessed them. Fischer then sued Domestic Finance for wrongful seizure of the appliances.

State the arguments for the plaintiff and the defendant. What should the decision be?

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