Ridel v. e3m Investments Inc

Ridel v. e3m Investments Inc

The appellants failed to prove the necessary certainty of intention to create a trust over the Accumulating Account; although subject matter and object were satisfied the absence of intention, evidenced by ambiguous OSC documentation and OSC/IIROC ability to permit distributions, meant the funds remained part of the bankrupt estate; the Court of Appeal dismissed the appeal affirming that conclusion.

Citation
2016 ONCA 522
Parties
Applicant/appellant: Jean-Marc Ridel; Applicant/appellant: Nadine Suzanne Josephine Ridel; Applicant/appellant: Marc H. Ridel; Respondent/trustee: Schwartz, Levitsky, Feldman Inc. - Trustee
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
30 June 2016
Procedural Posture
Bankruptcy and Insolvency Appeal / Appeal to Court of Appeal From Superior Court Motion Under S.81 of the BIA
Outcome
Appeal dismissed
Legal Topics
Existence of Trust, Certainty of Intention, Regulatory Conditions by OSC, Preferential Treatment of Creditors
Source Language
English
Bankruptcy and Insolvency Trusts Securities Regulation Civil Procedure Existence of Trust Certainty of Intention Regulatory Conditions by OSC Preferential Treatment of Creditors

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Parties

Jean-Marc Ridel

Applicant/appellant

Nadine Suzanne Josephine Ridel

Applicant/appellant

Marc H. Ridel

Applicant/appellant

Schwartz, Levitsky, Feldman Inc. - Trustee

Respondent/trustee

Procedural Posture

Bankruptcy and Insolvency Appeal / Appeal to Court of Appeal From Superior Court Motion Under S.81 of the BIA

Legal Issues

  1. 1 Whether funds in the Accumulating Account constituted trust property for the judgment creditors
  2. 2 Whether there was certainty of intention to create a trust
  3. 3 Whether OSC terms and conditions created a preference for certain creditors and whether that affected trust analysis

Ratio Decidendi

The appellants failed to prove the necessary certainty of intention to create a trust over the Accumulating Account; although subject matter and object were satisfied the absence of intention, evidenced by ambiguous OSC documentation and OSC/IIROC ability to permit distributions, meant the funds remained part of the bankrupt estate; the Court of Appeal dismissed the appeal affirming that conclusion.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Costs awarded to the respondent in the sum of $17,000 inclusive of disbursements and applicable taxes