Okanagan Credit Union v. Riebenstahl

Okanagan Credit Union v. Riebenstahl

The court granted a declaration that ss.69 to 69.3 do not bar the Credit Union from pursuing an action in fraud because, on the material before the court, the Credit Union established a prima facie case of fraudulent misrepresentation and reliance such that the fraud exception in s.178(1) applied and the stay under...

Source-derived case information.

Citation
2000 BCSC 1759
Parties
Creditor: Okanagan Savings Credit Union; Bankrupts: Wolfgang Frederick Paul Riebenstahl and Waltraud Lotte "Nancy" Riebenstahl
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
7 December 2000
Procedural Posture
Bankruptcy Application / Interlocutory Application for Declaration Under BIA Ss.69.4 and 178(1)(d),(e)
Outcome
Declaration granted that ss.69 to 69.3 of the Bankruptcy and Insolvency Act do not bar the Okanagan Savings Credit Union from bringing an action in fraud against the bankrupts; prima facie case established.
Legal Topics
Fraudulent Misrepresentation, Stay of Proceedings Under BIA S.69, Exceptions to Discharge (fraud), Secured Creditor Remedies, Prima Facie Entitlement to Proceed
Source Language
english
Bankruptcy Law Fraud Secured Transactions Civil Procedure Fraudulent Misrepresentation Stay of Proceedings Under BIA S.69 Exceptions to Discharge (fraud) Secured Creditor Remedies +1 more

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Parties

Okanagan Savings Credit Union

Creditor

Wolfgang Frederick Paul Riebenstahl and Waltraud Lotte "Nancy" Riebenstahl

Bankrupts

Procedural Posture

Bankruptcy Application / Interlocutory Application for Declaration Under BIA Ss.69.4 and 178(1)(d),(e)

Legal Issues

  1. 1 Whether ss.69 to 69.3 of the Bankruptcy and Insolvency Act bar the creditor from pursuing a fraud action against the bankrupts
  2. 2 Whether the creditor has established a prima facie case of fraudulent misrepresentation and reliance sufficient to invoke the fraud exception to discharge
  3. 3 Whether the creditor's choice to sue rather than seize collateral precludes reliance or causation

Ratio Decidendi

The court granted a declaration that ss.69 to 69.3 do not bar the Credit Union from pursuing an action in fraud because, on the material before the court, the Credit Union established a prima facie case of fraudulent misrepresentation and reliance such that the fraud exception in s.178(1) applied and the stay under s.69 did not preclude the fraud action.

Court Disposition

Declaration granted that ss.69 to 69.3 of the Bankruptcy and Insolvency Act do not bar the Okanagan Savings Credit Union from bringing an action in fraud against the bankrupts; prima facie case established.

Orders

  • Declaration that ss.69 to 69.3 of the Bankruptcy and Insolvency Act do not bar an action in fraud brought by the Okanagan Savings Credit Union