Jameson House Properties Ltd. (Re)

Jameson House Properties Ltd. (Re)

The pre-sale purchasers are not creditors under the plan because their asserted rights arise either as proprietary claims for return of deposits governed by BIA s.81 or as statutory defences under REDMA (s.23) rather than debts provable in bankruptcy under the CCAA/BIA; no triggering event required a new disclosure statement and the April 2007 disclosure was not a misrepresentation establishing a provable debt, therefore the purchasers are not entitled to make claims under the claims process order.

Citation
2009 BCSC 844
Parties
Petitioner: Jameson House Properties Ltd.; Co Petitioner: Jameson House Ventures, Ltd.; Applicants/purchasers: Pre-sale purchasers; Regulator: Superintendent of Real Estate; Creditor/interested Party: Quest Capital; Court Appointed Monitor: Ernst & Young
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
26 May 2009
Procedural Posture
CCAA Application (claims Determination) / Application Oral Reasons in Chambers (may 26, 2009)
Outcome
Application dismissed. Pre-sale purchasers are not creditors as defined in the plan and are not entitled to make claims under the claims process order in respect of the deposits.
Legal Topics
Creditor Status Under CCAA, REDMA Misrepresentation and Rescission, Provable Claims in Bankruptcy, Enforceability of Purchase Agreements, Trust Deposits
Source Language
English
Insolvency Real Estate Law Statutory Interpretation Contract Law Bankruptcy Creditor Status Under CCAA REDMA Misrepresentation and Rescission Provable Claims in Bankruptcy +2 more

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Parties

Jameson House Properties Ltd.

Petitioner

Jameson House Ventures, Ltd.

Co Petitioner

Pre-sale purchasers

Applicants/purchasers

Superintendent of Real Estate

Regulator

Quest Capital

Creditor/interested Party

Ernst & Young

Court Appointed Monitor

Procedural Posture

CCAA Application (claims Determination) / Application Oral Reasons in Chambers (may 26, 2009)

Legal Issues

  1. 1 Whether pre-sale purchasers are creditors under the CCAA/plan and entitled to make claims under the claims process order
  2. 2 Whether REDMA required a new disclosure statement triggering rescission rights
  3. 3 Whether the April 2007 disclosure amendment constituted a misrepresentation giving rise to damages

Ratio Decidendi

The pre-sale purchasers are not creditors under the plan because their asserted rights arise either as proprietary claims for return of deposits governed by BIA s.81 or as statutory defences under REDMA (s.23) rather than debts provable in bankruptcy under the CCAA/BIA; no triggering event required a new disclosure statement and the April 2007 disclosure was not a misrepresentation establishing a provable debt, therefore the purchasers are not entitled to make claims under the claims process order.

Court Disposition

Application dismissed. Pre-sale purchasers are not creditors as defined in the plan and are not entitled to make claims under the claims process order in respect of the deposits.

Orders

  • Dismissal of the purchasers' application