Thibodeau v. Thibodeau

Thibodeau v. Thibodeau

An arbitration award directing payment of an equalization amount from the payor spouse’s share of matrimonial home sale proceeds, without an express order under s.9(1) creating a transfer, vesting, security, charge or trust, does not create a proprietary interest enforceable against the trustee in bankruptcy;...

Source-derived case information.

Citation
2011 ONCA 110
Parties
Applicant (respondent in Appeal): Darlene Joyce Thibodeau; Respondent (appellant): Rodney Blair Thibodeau; Respondent (appellant): The Bank of Nova Scotia, as assignee of Cyril Sapiro & Co. Ltd., Trustee of the Estate of Rodney Blair Thibodeau, a bankrupt
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
10 February 2011
Procedural Posture
Appeal From Superior Court Order Concerning Enforcement of Family Arbitration Award and Bankruptcy Priority / Court of Appeal Decision
Outcome
Appeal allowed; set aside paragraphs 5 and 7 of the May 11, 2009 order; Mr. Thibodeau’s share of the net proceeds of sale of the matrimonial home vests in the bankrupt estate to be distributed under BIA s.136; RRSP transfer order set aside
Legal Topics
Equalization Payments, Priority of Creditors, Equitable Trust and Equitable Assignment, S.9(1) Family Law Act Remedies, RRSP Exemption and Enforcement, Arbitration Award Enforcement
Source Language
english
Family Law Bankruptcy/insolvency Equity/trusts Civil Procedure Equalization Payments Priority of Creditors Equitable Trust and Equitable Assignment S.9(1) Family Law Act Remedies +2 more

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Parties

Darlene Joyce Thibodeau

Applicant (respondent in Appeal)

Rodney Blair Thibodeau

Respondent (appellant)

The Bank of Nova Scotia, as assignee of Cyril Sapiro & Co. Ltd., Trustee of the Estate of Rodney Blair Thibodeau, a bankrupt

Respondent (appellant)

Procedural Posture

Appeal From Superior Court Order Concerning Enforcement of Family Arbitration Award and Bankruptcy Priority / Court of Appeal Decision

Legal Issues

  1. 1 Whether an arbitration award directing payment of an equalization amount from the payor spouse’s share of matrimonial home sale proceeds creates a proprietary interest (trust/charge/equitable assignment) effective against the trustee in bankruptcy
  2. 2 Whether the motion judge erred in ordering transfer of the bankrupt’s RRSP to the payee spouse to satisfy costs and claims

Ratio Decidendi

An arbitration award directing payment of an equalization amount from the payor spouse’s share of matrimonial home sale proceeds, without an express order under s.9(1) creating a transfer, vesting, security, charge or trust, does not create a proprietary interest enforceable against the trustee in bankruptcy; consequently the payor’s share of the proceeds vests in the bankrupt estate to be distributed under BIA s.136; the motion judge also erred in ordering transfer of the RRSP because such proprietary relief was not granted by the arbitrator and could not be grafted onto an enforcement proceeding under s.59.8 or Rule 59.06(2)(a) in the absence of proper application and justification.

Court Disposition

Appeal allowed; set aside paragraphs 5 and 7 of the May 11, 2009 order; Mr. Thibodeau’s share of the net proceeds of sale of the matrimonial home vests in the bankrupt estate to be distributed under BIA s.136; RRSP transfer order set aside

Orders

  • Set aside paragraphs 5 and 7 of the May 11, 2009 order
  • Order that Mr. Thibodeau’s share of the net proceeds of sale of the matrimonial home vest in the bankrupt estate to be distributed in accordance with s.136 of the BIA