Giles v. Westminster Savings Credit Union

Giles v. Westminster Savings Credit Union

The appeal is dismissed: the trial judge's finding that there was no conventional trust or Quistclose trust is upheld; the arrangements are characterised as commercial debtor/creditor relationships with insufficient certainty of subject matter for a trust; even on the alternative fiduciary analysis the Credit Union and its manager are not liable as accessories because they lacked actual or constructive knowledge and reasonable inquiries would not have revealed a breach; additionally Land Title Act protections apply absent fraud.

Citation
2007 BCCA 411
Parties
Appellant/plaintiff: Laurie Giles and others; Respondent/defendant: Westminster Savings Credit Union; Respondent/defendant: Gary J. Thomas; Respondent/defendant: Taylor Ventures Ltd.; Respondent/defendant: Ralph Dennis Taylor; Respondent/defendant: Joanne Taylor; Respondent/defendant: Floyd Taylor; Respondent/defendant: Vince Taylor; Respondent/defendant: Michael G. Oliver; Respondent/defendant: Raymond E. Drabik; Respondent/defendant: Oliver, Drabik, Carruthers & Chalcraft (partnership); Respondent/defendant: Kenneth Rogers Appraisals Ltd.; Respondent/defendant: Kenneth N. Rogers
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
10 August 2007
Procedural Posture
Civil Appeal / Decision on Appeal From Trial Judgment
Outcome
Appeal dismissed
Legal Topics
Breach of Trust, Quistclose/purpose Trust, Fiduciary Obligations and Duty of Loyalty, Knowing Assistance, Knowing Receipt, Implied Contractual Terms, Land Title Act S.29, Accessory Liability
Source Language
English
Trusts and Equitable Remedies Fiduciary Duty Property Law Banking and Financial Institutions Civil Procedure Breach of Trust Quistclose/purpose Trust Fiduciary Obligations and Duty of Loyalty +5 more

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Parties

Laurie Giles and others

Appellant/plaintiff

Westminster Savings Credit Union

Respondent/defendant

Gary J. Thomas

Respondent/defendant

Taylor Ventures Ltd.

Respondent/defendant

Ralph Dennis Taylor

Respondent/defendant

Joanne Taylor

Respondent/defendant

Floyd Taylor

Respondent/defendant

Vince Taylor

Respondent/defendant

Michael G. Oliver

Respondent/defendant

Raymond E. Drabik

Respondent/defendant

Oliver, Drabik, Carruthers & Chalcraft (partnership)

Respondent/defendant

Kenneth Rogers Appraisals Ltd.

Respondent/defendant

Kenneth N. Rogers

Respondent/defendant

Procedural Posture

Civil Appeal / Decision on Appeal From Trial Judgment

Legal Issues

  1. 1 Whether investments created a trust or Quistclose/purpose trust
  2. 2 Whether TVL owed fiduciary duties to the investors
  3. 3 Whether Westminster Savings Credit Union and its manager Gary Thomas are liable as accessories for knowing assistance or knowing receipt

Ratio Decidendi

The appeal is dismissed: the trial judge's finding that there was no conventional trust or Quistclose trust is upheld; the arrangements are characterised as commercial debtor/creditor relationships with insufficient certainty of subject matter for a trust; even on the alternative fiduciary analysis the Credit Union and its manager are not liable as accessories because they lacked actual or constructive knowledge and reasonable inquiries would not have revealed a breach; additionally Land Title Act protections apply absent fraud.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Dismissal of action against Westminster Savings Credit Union and Gary J. Thomas upheld