HSBC Bank Canada v. Maple Leaf Loading Ltd.

HSBC Bank Canada v. Maple Leaf Loading Ltd.

The court held that the Receiver's activities and the legal work performed met the established reasonableness factors and therefore approved the Receiver's and counsel's fees and disbursements as fair and reasonable; the court also approved the proposed interim distribution. Objections by Caterpillar and Inland raised allocation issues that need not be determined at this stage and should be addressed at the allocation hearing.

Citation
2014 BCSC 2245
Parties
Petitioner: HSBC Bank Canada; Respondent: Maple Leaf Loading Ltd.; Respondent: Pro-Trans Ventures Inc.; Respondent: Caterpillar Financial Services Limited; Respondent: Element Fleet Management Inc.; Respondent: GE Canada Equipment Financing G.P.; Respondent: GE Canada Leasing Services Company; Respondent: General Electric Canada Equipment Finance G.P.; Respondent: Ge Canada Asset Financing Holding Company; Respondent: Getechology Finance; Respondent: GE VFS Canada Limited Partnership; Respondent: GE Capital Canada Equipment Financing & Leasing Company; Respondent: Mercedes-Benz Financial Services Canada Corporation; Respondent: Daimler Truck Financial; Respondent: Finning International Inc.; Respondent: National Leasing Group Inc.; Respondent: Coast Capital Savings Credit Union; Respondent: ATCO Structures & Logistics Ltd.; Respondent: Knight Manufacturing Ltd.; Respondent: Dynamic Capital II Corporation; Respondent: Canadian Western Bank Leasing Inc.; Respondent: James Western Star Truck & Trailer Ltd.; Respondent: Zeemac Vehicle Lease Ltd.; Respondent: Inland Kenworth; Respondent: Premium Truck & Trailer Inc.; Trustee/receiver: Ernst & Young Inc.; Interested Party: Roadlink Transport Ltd.; Interested Party: Crites
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
28 November 2014
Procedural Posture
Insolvency/bankruptcy/receivership / Application Hearing (interim Distribution and Fee Approval); Bankruptcy Order Issued and Trustee Appointed
Outcome
Bankruptcy order granted as to Maple Leaf Loading Ltd.; Ernst & Young Inc. appointed Trustee; Receiver reports, fees and counsel fees approved; interim distribution approved.
Legal Topics
Appointment of Trustee, Approval of Receiver Reports, Approval of Receiver Fees and Disbursements, Interim Distribution of Proceeds, Allocation Disputes, Seizure of Property
Source Language
English
Insolvency Receivership Bankruptcy Civil Procedure Costs and Fees Appointment of Trustee Approval of Receiver Reports Approval of Receiver Fees and Disbursements +3 more

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Parties

HSBC Bank Canada

Petitioner

Maple Leaf Loading Ltd.

Respondent

Pro-Trans Ventures Inc.

Respondent

Caterpillar Financial Services Limited

Respondent

Element Fleet Management Inc.

Respondent

GE Canada Equipment Financing G.P.

Respondent

GE Canada Leasing Services Company

Respondent

General Electric Canada Equipment Finance G.P.

Respondent

Ge Canada Asset Financing Holding Company

Respondent

Getechology Finance

Respondent

GE VFS Canada Limited Partnership

Respondent

GE Capital Canada Equipment Financing & Leasing Company

Respondent

Mercedes-Benz Financial Services Canada Corporation

Respondent

Daimler Truck Financial

Respondent

Finning International Inc.

Respondent

National Leasing Group Inc.

Respondent

Coast Capital Savings Credit Union

Respondent

ATCO Structures & Logistics Ltd.

Respondent

Knight Manufacturing Ltd.

Respondent

Dynamic Capital II Corporation

Respondent

Canadian Western Bank Leasing Inc.

Respondent

James Western Star Truck & Trailer Ltd.

Respondent

Zeemac Vehicle Lease Ltd.

Respondent

Inland Kenworth

Respondent

Premium Truck & Trailer Inc.

Respondent

Ernst & Young Inc.

Trustee/receiver

Roadlink Transport Ltd.

Interested Party

Crites

Interested Party

Procedural Posture

Insolvency/bankruptcy/receivership / Application Hearing (interim Distribution and Fee Approval); Bankruptcy Order Issued and Trustee Appointed

Legal Issues

  1. 1 Whether court should approve five reports of the Receiver
  2. 2 Whether fees and disbursements of the Receiver and its counsel are fair and reasonable
  3. 3 Whether proposed interim distribution of $9,913,550 should be approved

Ratio Decidendi

The court held that the Receiver's activities and the legal work performed met the established reasonableness factors and therefore approved the Receiver's and counsel's fees and disbursements as fair and reasonable; the court also approved the proposed interim distribution. Objections by Caterpillar and Inland raised allocation issues that need not be determined at this stage and should be addressed at the allocation hearing.

Court Disposition

Bankruptcy order granted as to Maple Leaf Loading Ltd.; Ernst & Young Inc. appointed Trustee; Receiver reports, fees and counsel fees approved; interim distribution approved.

Orders

  • Order declaring Maple Leaf Loading Ltd. bankrupt
  • Ernst & Young Inc. appointed as Trustee of the estate of Maple Leaf Loading Ltd.