Fougere (Re)

Fougere (Re)

The Registrar refused to approve the Division I proposal without an open and accessible hearing because the open court principle requires affected parties and the public have the ability to participate and because the trustee did not demonstrate the matter falls within the narrow 'urgent or essential' exception under the pandemic model; the application is adjourned without day and the trustee must bear costs of any required submissions and notice.

Citation
2020 NSSC 129
Parties
Proposed Debtor/applicant: Rene Richard Fougere; Proposed Trustee: Powell Associates Ltd.
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
6 April 2020
Procedural Posture
Bankruptcy and Insolvency Division I Proposal / Application to Approve Division I Proposal; Hearing Requested to Proceed Without Trustee Attendance; Matter Adjourned Without Day
Outcome
Application adjourned without day; request to approve on a desktop basis denied
Legal Topics
Division I Proposal Approval, Open Court Principle, Essential Services/urgent Hearings, Notice to Creditors, Adjournment, Jurisdiction Under BIA Ss.192(1)(d) and 192(1)(j)
Source Language
English
Bankruptcy and Insolvency Procedural Law Administrative Law Access to Justice/open Courts Division I Proposal Approval Open Court Principle Essential Services/urgent Hearings Notice to Creditors +2 more

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Parties

Rene Richard Fougere

Proposed Debtor/applicant

Powell Associates Ltd.

Proposed Trustee

Procedural Posture

Bankruptcy and Insolvency Division I Proposal / Application to Approve Division I Proposal; Hearing Requested to Proceed Without Trustee Attendance; Matter Adjourned Without Day

Legal Issues

  1. 1 Whether a Division I proposal can be approved without an open hearing or trustee attendance during the pandemic
  2. 2 Whether the matter qualifies as urgent or essential under the pandemic essential services model
  3. 3 Whether the court has jurisdiction to adjudicate absent consent or where objecting creditors may exist

Ratio Decidendi

The Registrar refused to approve the Division I proposal without an open and accessible hearing because the open court principle requires affected parties and the public have the ability to participate and because the trustee did not demonstrate the matter falls within the narrow 'urgent or essential' exception under the pandemic model; the application is adjourned without day and the trustee must bear costs of any required submissions and notice.

Court Disposition

Application adjourned without day; request to approve on a desktop basis denied

Orders

  • Application adjourned without day
  • Trustee to bear costs of any submissions and of providing notice and participation arrangements; such costs are not recoverable from the proposal or estate