Ted Leroy Trucking Ltd. and 383838 B.C. Ltd. (Re)
The court held that 'wages' in the WEPPA and for the purposes of s.81.3 of the BIA is broad enough to include amounts earned by an employee that are directed to be paid to third parties on the employee's behalf (including payments under collective agreements such as benefit contributions and union dues), and is not limited to amounts payable directly to the individual employee.
- Citation
- 2009 BCSC 41
- Parties
- Applicant (union): United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union Locals 1-80, 1-363 and 1-2171; Secured Creditor / Interested Party: Century Services Ltd.; Interested Creditor/party: Timberwest; Interested Creditor/party: Western Forest; Interested Creditor/party: Timberlands; Receiver and Trustee: PricewaterhouseCoopers Inc.; Debtor: Ted Leroy Trucking Ltd.; Associated Corporate Debtor: 383838 B.C. Ltd.
- Court
- Supreme Court of British Columbia
- Jurisdiction
- Canada
- Judgment Date
- 23 January 2009
- Procedural Posture
- Interpretation of WEPPA and BIA in Insolvency Context / Application for Directions/hearing and Reasons for Judgment
- Outcome
- Application for directions granted in favour of the Union; 'wages' construed to include third-party payments made on behalf of employees under collective agreements and employee direction
- Legal Topics
- Wage Earner Protection Program Act, BIA S.81.3 Wage Priority, Definition of "wages", Collective Agreements, Third Party Payments, Priority of Employee Claims
- Source Language
- English
Case Brief
Summary, issues, holding and outcome
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Parties
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union Locals 1-80, 1-363 and 1-2171
Applicant (union)
Century Services Ltd.
Secured Creditor / Interested Party
Timberwest
Interested Creditor/party
Western Forest
Interested Creditor/party
Timberlands
Interested Creditor/party
PricewaterhouseCoopers Inc.
Receiver and Trustee
Ted Leroy Trucking Ltd.
Debtor
383838 B.C. Ltd.
Associated Corporate Debtor
Procedural Posture
Interpretation of WEPPA and BIA in Insolvency Context / Application for Directions/hearing and Reasons for Judgment
Legal Issues
- 1 Whether 'wages' under the WEPPA includes amounts payable to third parties on behalf of employees (eg. union dues, benefit trust contributions)
- 2 Whether s.81.3 of the BIA's definition and priority for 'wages' extends to amounts remitted to third parties pursuant to collective agreements or employee direction
- 3 Whether payments to third parties are eligible for WEPPA payments and BIA super-priority
Ratio Decidendi
The court held that 'wages' in the WEPPA and for the purposes of s.81.3 of the BIA is broad enough to include amounts earned by an employee that are directed to be paid to third parties on the employee's behalf (including payments under collective agreements such as benefit contributions and union dues), and is not limited to amounts payable directly to the individual employee.
Court Disposition
Application for directions granted in favour of the Union; 'wages' construed to include third-party payments made on behalf of employees under collective agreements and employee direction
Orders
- Declaration that 'wages' under the Wage Earner Protection Program Act and s.81.3 of the Bankruptcy and Insolvency Act include amounts payable to third parties on behalf of employees (eg. benefit trust contributions and union dues)
- Receiver's rejection of the Union's claim set aside and Receiver directed to treat such amounts as wages for the purposes of WEPPA and BIA priority
Full Case Text
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