Bronson v. Hewitt

Bronson v. Hewitt

The court amended paragraph 14 of its February 11, 2014 order to permit Howard H. Hewitt to pay amounts shown to be owing on income tax returns for the Big Nine Trust from the trust funds up to a maximum of $400,000 (US), provided the returns are prepared by qualified accountants or tax lawyers and copies of the returns and relevant correspondence with Canada Revenue Agency are provided to the respondents or their counsel; the remaining funds must remain in counsel's interest-bearing trust account until the trustee has passed accounts, costs are assessed, any tax due is paid or provided for, and a single justice approves release, with leave to make further application.

Citation
2014 BCCA 188
Parties
Respondents (plaintiffs): Thomas E. Bronson et al.; Appellant (defendant): Howard H. Hewitt; Respondent by Cross Appeal (defendant): A. Eugene Lewis
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
16 May 2014
Procedural Posture
Appeal and Cross Appeal / Supplementary Reasons; Application to Vary Court Order Re Release of Trust Funds
Outcome
Order amended to permit limited release of trust funds for tax payments and to impose conditions on release of remaining funds
Legal Topics
Release of Trust Funds, Variation of Court Order, Tax Payment From Trust, Trustee Accounting, Costs Assessment, Leave to Apply
Source Language
English
Trusts Tax Civil Procedure Equity Appeals Release of Trust Funds Variation of Court Order Tax Payment From Trust +3 more

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Parties

Thomas E. Bronson et al.

Respondents (plaintiffs)

Howard H. Hewitt

Appellant (defendant)

A. Eugene Lewis

Respondent by Cross Appeal (defendant)

Procedural Posture

Appeal and Cross Appeal / Supplementary Reasons; Application to Vary Court Order Re Release of Trust Funds

Legal Issues

  1. 1 Whether the Court of Appeal should vary its prior order to permit release of trust funds to pay Income Tax Act liabilities for the Big Nine Trust
  2. 2 What conditions must be imposed to permit release of trust funds
  3. 3 Whether the trustee must pass accounts and have costs assessed before further release

Ratio Decidendi

The court amended paragraph 14 of its February 11, 2014 order to permit Howard H. Hewitt to pay amounts shown to be owing on income tax returns for the Big Nine Trust from the trust funds up to a maximum of $400,000 (US), provided the returns are prepared by qualified accountants or tax lawyers and copies of the returns and relevant correspondence with Canada Revenue Agency are provided to the respondents or their counsel; the remaining funds must remain in counsel's interest-bearing trust account until the trustee has passed accounts, costs are assessed, any tax due is paid or provided for, and a single justice approves release, with leave to make further application.

Court Disposition

Order amended to permit limited release of trust funds for tax payments and to impose conditions on release of remaining funds

Orders

  • Paragraph 14 of the February 11, 2014 order is amended to permit Howard H. Hewitt to pay amounts shown to be owing on income tax returns for the Big Nine Trust up to a maximum of $400,000 (US) from the trust funds provided those tax returns are prepared by qualified accountants and/or tax lawyers and copies of the...
  • The balance of the trust funds shall remain in the interest-bearing trust account of counsel for Howard H. Hewitt until: (a) Howard H. Hewitt has passed his accounts as Trustee before the registrar of the Supreme Court of British Columbia; (b) the parties' respective costs have been assessed; (c) the Trustee(s) of...