Moore, Re

Moore, Re

On the balance of the evidence the court found Dale acted as agent for a business operated jointly with Joan and that Joan, by her conduct and participation in repayments, ratified Dale's borrowing; therefore she is liable for the outstanding loan balance which is provable in her consumer proposal; pre-judgment interest was refused because it only accrues upon a court judgment and cannot be allowed in this proposal context; costs of $2,000 are provable and added to the claim.

Citation
2006 NSSC 216
Parties
Claimant/appellant: Margaret McLellan; Debtor/respondent: Joan Marie Moore T/A Colchester Auto Services/Colchester Auto Body; Administrator/respondent: Venner & Associates (Administrator)
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
5 July 2006
Procedural Posture
Appeal of Disallowance of Proof of Claim in Consumer Proposal (bankruptcy and Insolvency) / Decision on Appeal Following Hearing
Outcome
Appeal allowed in part; claim against debtor allowed; pre-judgment interest disallowed; costs allowed.
Legal Topics
Consumer Proposal, Proof of Claim, Agency by Ratification, Pre Judgment Interest, Provable Costs
Source Language
English
Bankruptcy and Insolvency Agency Law Civil Procedure Debtor Creditor Law Consumer Proposal Proof of Claim Agency by Ratification Pre Judgment Interest +1 more

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Parties

Margaret McLellan

Claimant/appellant

Joan Marie Moore T/A Colchester Auto Services/Colchester Auto Body

Debtor/respondent

Venner & Associates (Administrator)

Administrator/respondent

Procedural Posture

Appeal of Disallowance of Proof of Claim in Consumer Proposal (bankruptcy and Insolvency) / Decision on Appeal Following Hearing

Legal Issues

  1. 1 Whether the debtor (Joan Moore) is liable for loans advanced to the business or to her late husband Dale
  2. 2 Whether Dale acted as agent for Joan and whether Joan ratified his acts, creating liability
  3. 3 Whether pre-judgment interest is allowable in the consumer proposal context

Ratio Decidendi

On the balance of the evidence the court found Dale acted as agent for a business operated jointly with Joan and that Joan, by her conduct and participation in repayments, ratified Dale's borrowing; therefore she is liable for the outstanding loan balance which is provable in her consumer proposal; pre-judgment interest was refused because it only accrues upon a court judgment and cannot be allowed in this proposal context; costs of $2,000 are provable and added to the claim.

Court Disposition

Appeal allowed in part; claim against debtor allowed; pre-judgment interest disallowed; costs allowed.

Orders

  • Appeal granted.
  • Administrator directed to allow Margaret McLellan's claim in the consumer proposal for the unpaid principal balance of $72,250 plus costs of $2,000, total $74,250.