Asian Concepts Franchising Corporation (Re)

Asian Concepts Franchising Corporation (Re)

Because the Trustee improperly abdicated its statutory duty to independently assess Heartland's claim and adopted an adversarial role supporting ACFC and Heartland, the Court ordered that Adrenaline be awarded its costs and that special costs be paid personally by the Trustee; costs were also awarded against Heartland and ACFC and all costs are to be assessed before the Registrar.

Citation
2018 BCSC 1464
Parties
Debtor: Asian Concepts Franchising Corporation; Creditor/applicant: Adrenaline Drive Inc.; Proposal Trustee: Grant Thornton Limited; Creditor: WB Heartland Restaurant Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
29 August 2018
Procedural Posture
Proposal Proceedings Under the Bankruptcy and Insolvency Act / Costs Application Following Earlier Ruling (2018 BCSC 1022)
Outcome
Adrenaline awarded its costs; special costs awarded personally against the Trustee; costs awarded against Heartland and ACFC; all costs to be assessed before the Registrar.
Legal Topics
Proposal Trustee Liability, Trustee Duties and Impartiality, Personal Liability for Costs, Special Costs (solicitor and Client), Section 197 BIA
Source Language
English
Bankruptcy and Insolvency Civil Procedure Costs Proposal Trustee Liability Trustee Duties and Impartiality Personal Liability for Costs Special Costs (solicitor and Client) Section 197 BIA

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Parties

Asian Concepts Franchising Corporation

Debtor

Adrenaline Drive Inc.

Creditor/applicant

Grant Thornton Limited

Proposal Trustee

WB Heartland Restaurant Inc.

Creditor

Procedural Posture

Proposal Proceedings Under the Bankruptcy and Insolvency Act / Costs Application Following Earlier Ruling (2018 BCSC 1022)

Legal Issues

  1. 1 Whether costs should be awarded personally against the proposal trustee
  2. 2 Whether special costs (solicitor and client) should be awarded
  3. 3 Whether costs should be awarded against other parties (ACFC and Heartland)

Ratio Decidendi

Because the Trustee improperly abdicated its statutory duty to independently assess Heartland's claim and adopted an adversarial role supporting ACFC and Heartland, the Court ordered that Adrenaline be awarded its costs and that special costs be paid personally by the Trustee; costs were also awarded against Heartland and ACFC and all costs are to be assessed before the Registrar.

Court Disposition

Adrenaline awarded its costs; special costs awarded personally against the Trustee; costs awarded against Heartland and ACFC; all costs to be assessed before the Registrar.

Orders

  • Adrenaline awarded its costs of the earlier application and of this costs application against WB Heartland Restaurant Inc.
  • Adrenaline awarded its costs of the earlier application and of this costs application against Asian Concepts Franchising Corporation