Re Bankruptcy of Okusako

Re Bankruptcy of Okusako

Inspectors cannot, by passing a resolution to 'retroactively retain' solicitors who acted for creditors, bind the estate to pay legal bills where the services were not authorized in writing by the trustee or approved by court; 'duly rendered' in the taxation rule means rendered to the estate and absent a court order...

Source-derived case information.

Citation
2007 BCSC 290
Parties
Bankrupt: Tsunehiro (Tony) Okusako; Bankrupt: Etsuko Okusako; Former Trustee: Laurence Westgeest; Successor Trustee: Campbell Saunders Ltd.; Solicitor for Certain Creditors: Katherine Wellburn (Harper Grey Easton); Creditor (judgment Creditor): Chris Charles; Creditor/plaintiff: Mitsuru Ashimura; Creditor/plaintiff Company: Nippon Photo Ltd.; Regulator/opponent to Fees: Office of the Superintendent of Bankruptcy
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
28 February 2007
Procedural Posture
Bankruptcy Taxation of Legal Accounts / Desk Taxation Application by Solicitors Dismissed by Registrar
Outcome
application dismissed
Legal Topics
Retroactive Retainer, Inspectors' Authority, Trustee Authorization, Taxation of Solicitor's Bills, Interpretation of BIA and BIA Rules
Source Language
english
Bankruptcy Law Insolvency Costs and Taxation Trusteeship and Administration Retroactive Retainer Inspectors' Authority Trustee Authorization Taxation of Solicitor's Bills +1 more

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Parties

Tsunehiro (Tony) Okusako

Bankrupt

Etsuko Okusako

Bankrupt

Laurence Westgeest

Former Trustee

Campbell Saunders Ltd.

Successor Trustee

Katherine Wellburn (Harper Grey Easton)

Solicitor for Certain Creditors

Chris Charles

Creditor (judgment Creditor)

Mitsuru Ashimura

Creditor/plaintiff

Nippon Photo Ltd.

Creditor/plaintiff Company

Office of the Superintendent of Bankruptcy

Regulator/opponent to Fees

Procedural Posture

Bankruptcy Taxation of Legal Accounts / Desk Taxation Application by Solicitors Dismissed by Registrar

Legal Issues

  1. 1 Whether inspectors may retroactively retain solicitors who acted for creditors so that bills rendered to creditors become payable by the estate
  2. 2 Whether a trustee or inspectors can adopt the obligation of another party without written trustee authorization or a court order
  3. 3 Whether legal services must be 'duly rendered' to the estate to be taxable against the estate

Ratio Decidendi

Inspectors cannot, by passing a resolution to 'retroactively retain' solicitors who acted for creditors, bind the estate to pay legal bills where the services were not authorized in writing by the trustee or approved by court; 'duly rendered' in the taxation rule means rendered to the estate and absent a court order the bills are not taxable against the estates.

Court Disposition

application dismissed

Orders

  • Solicitors' taxation application dismissed
  • Legal bills dated December 7, 2005 ($3,598.22) and April 26, 2006 ($8,069.81) shall not be taxed against the estates absent a court order authorizing payment