In the Matter of the Bankruptcy of Martin Wirick

In the Matter of the Bankruptcy of Martin Wirick

Where the court had previously found the bankrupt guilty of fraudulent breach of trust on undisputed facts, and balancing public interest and the bankrupt's circumstances, the proper disposition was a conditional discharge: the bankrupt was ordered to consent to a judgment of CAD 500,000 in favour of the Law Society and the discharge was suspended for three months, with the additional provision that failure to consent within 45 days would result in refusal of discharge.

Citation
2006 BCSC 1273
Parties
Bankrupt: Martin Keith Wirick; Creditor: Vancity Savings Credit Union; Creditor: Law Society of British Columbia; Creditor: HSBC Bank of Canada
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
27 June 2006
Procedural Posture
In Bankruptcy / Application for Discharge
Outcome
conditional discharge granted
Legal Topics
Fraudulent Breach of Trust, Discharge From Bankruptcy, Suspension of Discharge, Consent to Judgment, Public Interest in Professional Trust
Source Language
English
Bankruptcy and Insolvency Trusts Professional Discipline Fraudulent Breach of Trust Discharge From Bankruptcy Suspension of Discharge Consent to Judgment Public Interest in Professional Trust

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Parties

Martin Keith Wirick

Bankrupt

Vancity Savings Credit Union

Creditor

Law Society of British Columbia

Creditor

HSBC Bank of Canada

Creditor

Procedural Posture

In Bankruptcy / Application for Discharge

Legal Issues

  1. 1 Whether a court hearing a discharge application can find fraud or fraudulent breach of trust absent prior civil or criminal adjudication
  2. 2 Whether the bankrupt's conduct warrants absolute refusal of discharge or a conditional/suspended discharge under ss.172-173 of the Bankruptcy and Insolvency Act
  3. 3 Appropriate terms and amount of consent judgment as condition of discharge

Ratio Decidendi

Where the court had previously found the bankrupt guilty of fraudulent breach of trust on undisputed facts, and balancing public interest and the bankrupt's circumstances, the proper disposition was a conditional discharge: the bankrupt was ordered to consent to a judgment of CAD 500,000 in favour of the Law Society and the discharge was suspended for three months, with the additional provision that failure to consent within 45 days would result in refusal of discharge.

Court Disposition

conditional discharge granted

Orders

  • Discharge suspended for three months
  • Bankrupt must consent to judgment in favour of the Law Society in the amount of CAD 500000 as a condition of discharge