Ted Leroy Trucking Ltd. v. Century Services Inc.

Ted Leroy Trucking Ltd. v. Century Services Inc.

The Court held that the WEPPA definition of 'wages' (including 'compensation for services rendered') reasonably and properly encompasses employer payments to third-party benefit providers made pursuant to employment contracts or collective agreements; read in context with BIA s.81.3, legislative intent and practical workplace realities, such payments are part of employees' compensation and thus entitled to WEPPA entitlement and the BIA priority; the statutory limits ($3,000 cap and $2,000 secured priority) preserve the balance with secured creditors; appeal dismissed.

Citation
2010 BCCA 223
Parties
Respondent/petitioner: Ted Leroy Trucking Ltd. and 383838 B.C. Ltd.; Appellant/respondent: Century Services Inc.
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
6 May 2010
Procedural Posture
Appeal Bankruptcy and Insolvency; Employment/wage Protection / Court of Appeal Judgment on Appeal From Supreme Court of British Columbia
Outcome
Appeal dismissed
Legal Topics
Wage Earner Protection Program Act, BIA S.81.3 Superpriority, Definition of Wages, Third Party Benefit Payments, Priority of Secured Creditors
Source Language
English
Bankruptcy and Insolvency Employment Law Labour Law Statutory Interpretation Wage Earner Protection Program Act BIA S.81.3 Superpriority Definition of Wages Third Party Benefit Payments +1 more

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Parties

Ted Leroy Trucking Ltd. and 383838 B.C. Ltd.

Respondent/petitioner

Century Services Inc.

Appellant/respondent

Procedural Posture

Appeal Bankruptcy and Insolvency; Employment/wage Protection / Court of Appeal Judgment on Appeal From Supreme Court of British Columbia

Legal Issues

  1. 1 Whether WEPPA and BIA s.81.3 protections extend to payments made by an employer to third parties under employment contracts or collective agreements
  2. 2 Whether amounts remitted to third-party benefit providers constitute 'wages' or 'compensation for services rendered'
  3. 3 Whether including third-party payments as wages improperly disturbs the statutory balance with secured creditors

Ratio Decidendi

The Court held that the WEPPA definition of 'wages' (including 'compensation for services rendered') reasonably and properly encompasses employer payments to third-party benefit providers made pursuant to employment contracts or collective agreements; read in context with BIA s.81.3, legislative intent and practical workplace realities, such payments are part of employees' compensation and thus entitled to WEPPA entitlement and the BIA priority; the statutory limits ($3,000 cap and $2,000 secured priority) preserve the balance with secured creditors; appeal dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Declaration upheld that employee benefits under the collective agreement constitute 'wages' within the meaning of the WEPPA and are entitled to the priority provided by BIA s.81.3