J.W. Mason & Sons Ltd. (Re)

J.W. Mason & Sons Ltd. (Re)

The Court held the billed work was properly required for preparing restructuring proposals and thus fell within the scope of the Administration Charge and the accounts were entitled to be taxed as presented; objections about double payment and allocation of the charge were reserved for later proceedings.

Citation
2014 NSSC 409
Parties
Debtor / Proponent: J. W. Mason & Sons Limited; Debtor / Proponent: Mountain Crest Farm Limited; Debtor / Proponent: Solar Vale Farm Limited; Trustee / Applicant: BDO Canada Limited; Solicitors / Applicant: Burchell MacDougall; Secured Creditor / Respondent: Nova Scotia Farm Loan Board
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
21 November 2014
Procedural Posture
Bankruptcy and Insolvency / Taxation of Trustee and Solicitor Accounts After Deemed Assignments Following Rejected Division I Proposals
Outcome
Accounts of BDO Canada Limited and Burchell MacDougall taxed as presented; applicants entitled to have accounts taxed.
Legal Topics
Division I Proposal, Administration Charge, DIP Financing, Taxation of Accounts, Priority of Security
Source Language
English
Bankruptcy and Insolvency Civil Procedure Security and Priority Division I Proposal Administration Charge DIP Financing Taxation of Accounts Priority of Security

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Parties

J. W. Mason & Sons Limited

Debtor / Proponent

Mountain Crest Farm Limited

Debtor / Proponent

Solar Vale Farm Limited

Debtor / Proponent

BDO Canada Limited

Trustee / Applicant

Burchell MacDougall

Solicitors / Applicant

Nova Scotia Farm Loan Board

Secured Creditor / Respondent

Procedural Posture

Bankruptcy and Insolvency / Taxation of Trustee and Solicitor Accounts After Deemed Assignments Following Rejected Division I Proposals

Legal Issues

  1. 1 Whether the fees billed by the Trustee and solicitors were for work within the scope of the Court-approved Administration Charge under the Order and s.64.2 BIA
  2. 2 Whether secured creditor would be subject to double payment for fees it already paid in a sale of real property
  3. 3 Whether rejection of proposals (failure to secure creditor acceptance) warrants reduction of billed accounts

Ratio Decidendi

The Court held the billed work was properly required for preparing restructuring proposals and thus fell within the scope of the Administration Charge and the accounts were entitled to be taxed as presented; objections about double payment and allocation of the charge were reserved for later proceedings.

Court Disposition

Accounts of BDO Canada Limited and Burchell MacDougall taxed as presented; applicants entitled to have accounts taxed.

Orders

  • Accounts of BDO Canada Limited and Burchell MacDougall are taxable as presented and are payable pursuant to the Administration Charge granted by the Court Order of Sept 6, 2012
  • Further proceedings are reserved to determine allocation of the Administration Charge and any issue of double payment and access to DIP financing