Blackburn (Re)

Blackburn (Re)

Master Baker's orders were set aside because his decisions rested materially on a demonstrably incorrect factual premise (that the Trustee did not have the cheques prior to March 11, 2010); the trustee's disallowance of the Csillags' claim against Mrs. Blackburn was upheld, but the claims against Mr. Blackburn could not be finally determined on the record before the court and must be pursued in the Civil Action where the necessary evidence can be developed and tested.

Citation
2011 BCSC 1572
Parties
Debtor: Bernard Francis Blackburn; Debtor: Kim Yvonne Blackburn; Trustee: Meyers Norris Penny Limited; Appellant/creditor: Zsolt Csillag; Appellant/creditor: Anna Csillag
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
21 November 2011
Procedural Posture
Bankruptcy Appeal Under the Bankruptcy and Insolvency Act / Appeal to Supreme Court of British Columbia From Master Baker's Orders Following Trustee Disallowance of Proofs of Claim
Outcome
The Orders of Master Baker dated August 11, 2010 are set aside; the Trustee's disallowance of the claims against Mrs. Blackburn is upheld and she is granted a conditional discharge on the same terms; the Csillags must pursue their claims against Mr. Blackburn within the Civil Action; costs adjourned.
Legal Topics
Proofs of Claim, Disallowance of Claims, Standard of Review, Fresh Vs New Evidence, Lifting the Corporate Veil, Bankruptcy Discharge
Source Language
English
Bankruptcy and Insolvency Corporate Law Civil Procedure Proofs of Claim Disallowance of Claims Standard of Review Fresh Vs New Evidence Lifting the Corporate Veil +1 more

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Parties

Bernard Francis Blackburn

Debtor

Kim Yvonne Blackburn

Debtor

Meyers Norris Penny Limited

Trustee

Zsolt Csillag

Appellant/creditor

Anna Csillag

Appellant/creditor

Procedural Posture

Bankruptcy Appeal Under the Bankruptcy and Insolvency Act / Appeal to Supreme Court of British Columbia From Master Baker's Orders Following Trustee Disallowance of Proofs of Claim

Legal Issues

  1. 1 Whether the Trustee correctly disallowed the Csillags' proofs of claim
  2. 2 Whether Master Baker erred by excluding evidence not before the Trustee on the date of disallowance (Galaxy Sports issue)
  3. 3 Whether the corporate veil should be pierced to hold Mr. Blackburn personally liable for obligations of Meadowbrook

Ratio Decidendi

Master Baker's orders were set aside because his decisions rested materially on a demonstrably incorrect factual premise (that the Trustee did not have the cheques prior to March 11, 2010); the trustee's disallowance of the Csillags' claim against Mrs. Blackburn was upheld, but the claims against Mr. Blackburn could not be finally determined on the record before the court and must be pursued in the Civil Action where the necessary evidence can be developed and tested.

Court Disposition

The Orders of Master Baker dated August 11, 2010 are set aside; the Trustee's disallowance of the claims against Mrs. Blackburn is upheld and she is granted a conditional discharge on the same terms; the Csillags must pursue their claims against Mr. Blackburn within the Civil Action; costs adjourned.

Orders

  • Orders of Master Baker made August 11, 2010 are set aside.
  • Trustee's disallowance of the claims of Mr. and Mrs. Csillag against Mrs. Blackburn is upheld; Mrs. Blackburn is to be granted a Conditional Discharge in Bankruptcy on the same terms as set by Master Baker.