Pemberton Music Festival Limited Partnership (Re)

Pemberton Music Festival Limited Partnership (Re)

The application is dismissed because although the estates were enriched and purchasers deprived, there was a clear juristic reason for the debtors to receive the net ticket proceeds under the Services Agreement and the applicants failed to establish debtor misconduct or the high threshold required to impose a...

Source-derived case information.

Citation
2017 BCSC 2398
Parties
Debtor/bankrupt: Pemberton Music Festival Limited Partnership; General Partner/debtor: 1115666 B.C. Ltd.; Trustee: Ernst & Young Inc.; Applicant/ticket Seller: Ticketfly, LLC; Applicant/credit Card Processor: Ticketfly Canada Services Inc.; Assignee of Applicant: Pandora Media Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
29 December 2017
Procedural Posture
Bankruptcy and Insolvency Contested Application / Judgment on Application Re Constructive Trust and Subrogation (dismissed)
Outcome
Application dismissed; no constructive trust declared
Legal Topics
Constructive Trust, Unjust Enrichment, Subrogation, Chargebacks, Assignment, Debtor Misconduct
Source Language
english
Bankruptcy and Insolvency Equity Restitution Contract Law Constructive Trust Unjust Enrichment Subrogation Chargebacks +2 more

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Parties

Pemberton Music Festival Limited Partnership

Debtor/bankrupt

1115666 B.C. Ltd.

General Partner/debtor

Ernst & Young Inc.

Trustee

Ticketfly, LLC

Applicant/ticket Seller

Ticketfly Canada Services Inc.

Applicant/credit Card Processor

Pandora Media Inc.

Assignee of Applicant

Procedural Posture

Bankruptcy and Insolvency Contested Application / Judgment on Application Re Constructive Trust and Subrogation (dismissed)

Legal Issues

  1. 1 Whether ticket sale proceeds are subject to a constructive trust for unjust enrichment
  2. 2 Whether constructive trust should be imposed to remedy debtor misconduct
  3. 3 Whether ticket sale proceeds are identifiable property for proprietary remedy

Ratio Decidendi

The application is dismissed because although the estates were enriched and purchasers deprived, there was a clear juristic reason for the debtors to receive the net ticket proceeds under the Services Agreement and the applicants failed to establish debtor misconduct or the high threshold required to impose a constructive trust in bankruptcy; accordingly no proprietary trust was declared (while Ticketfly Canada would be subrogated to purchasers if a trust had been found and Pandora holds an assignment of Ticketfly's claims).

Court Disposition

Application dismissed; no constructive trust declared

Orders

  • The application of Ticketfly, Ticketfly Canada and assignee Pandora for a declaration that ticket sale proceeds are held by the Trustee pursuant to a constructive trust is dismissed
  • All other relief sought by the applicants on this application is dismissed