Botterill v. Schuringa

Botterill v. Schuringa

The Court concluded there was ample evidence of a trust arrangement and that the appellant, as directing mind, transferred trust monies into the general account while contemplating bankruptcy, obtaining a substantial personal benefit and thereby knowingly exposing the respondent to risk; consequently the appellant...

Source-derived case information.

Citation
C24822
Parties
Plaintiff/respondent in Appeal: Brian Botterill; Defendant/appellant: Frederick John Schuringa
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
10 December 1998
Procedural Posture
Civil Appeal / Court of Appeal Decision
Outcome
Appeal dismissed with costs
Legal Topics
Constructive Trustee Liability, Directing Mind Doctrine, Breach of Trust, Trust Claimant Status, Transfer of Trust Funds, Personal Liability of Corporate Officer
Source Language
english
Trusts Bankruptcy Agency Civil Procedure Constructive Trustee Liability Directing Mind Doctrine Breach of Trust Trust Claimant Status +2 more

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Parties

Brian Botterill

Plaintiff/respondent in Appeal

Frederick John Schuringa

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Decision

Legal Issues

  1. 1 Whether the respondent was a trust claimant of the bankrupt corporation
  2. 2 Whether the appellant, as directing mind of the corporation, was personally liable as a constructive trustee for breach of the trust agreement
  3. 3 Whether the transfer of trust funds into the corporation's general account while contemplating bankruptcy, and the personal benefit to the appellant, supports imposition of personal liability

Ratio Decidendi

The Court concluded there was ample evidence of a trust arrangement and that the appellant, as directing mind, transferred trust monies into the general account while contemplating bankruptcy, obtaining a substantial personal benefit and thereby knowingly exposing the respondent to risk; consequently the appellant is personally liable as a constructive trustee (citing Re Air Canada).

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs