Braich (Re)

Braich (Re)

The court held that s.215 of the BIA applies to foreign proceedings and that its protection extends to trustees' officers, employees and lawyer‑agents acting within the scope of their duties under the BIA; accordingly Braich must obtain leave of the bankruptcy court before commencing or continuing any action...

Source-derived case information.

Citation
2007 BCSC 1604
Parties
Respondent (bankrupt; Plaintiff in Washington Claim): Erwin Singh Braich; Applicant (trustee): KPMG Inc.; Co Applicant (alleged Related Entity): KPMG LLP; Applicant (senior Insolvency Partner/employee of Trustee): Robert Rusko; Applicant (kpmg Employee): David Wood; Applicant (counsel to Trustee): Brian McLean; Applicant (law Firm of Trustee's Counsel): McLean and Armstrong
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
7 November 2007
Procedural Posture
Bankruptcy and Insolvency / Application for Declaration and Injunctive Relief Under S.215 BIA (interlocutory)
Outcome
Court declared that s.215 applies to foreign and domestic proceedings and extends to trustee's officers, employees and lawyer‑agents; application for injunctions adjourned; Washington Claim remained stayed; court remained seized and applicants given liberty to relist.
Legal Topics
Section 215 BIA Leave, Statutory Immunity for Trustees, Scope of Protection to Agents and Employees, Foreign Proceedings, Interlocutory Injunctions
Source Language
english
Bankruptcy and Insolvency Civil Procedure Conflict of Laws Section 215 BIA Leave Statutory Immunity for Trustees Scope of Protection to Agents and Employees Foreign Proceedings Interlocutory Injunctions

Source-derived case record

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Parties

Erwin Singh Braich

Respondent (bankrupt; Plaintiff in Washington Claim)

KPMG Inc.

Applicant (trustee)

KPMG LLP

Co Applicant (alleged Related Entity)

Robert Rusko

Applicant (senior Insolvency Partner/employee of Trustee)

David Wood

Applicant (kpmg Employee)

Brian McLean

Applicant (counsel to Trustee)

McLean and Armstrong

Applicant (law Firm of Trustee's Counsel)

Procedural Posture

Bankruptcy and Insolvency / Application for Declaration and Injunctive Relief Under S.215 BIA (interlocutory)

Legal Issues

  1. 1 Whether s.215 of the Bankruptcy and Insolvency Act applies to foreign proceedings such as the Washington Claim
  2. 2 Whether s.215 protection extends to directors, officers, employees and retained counsel of a trustee
  3. 3 Whether Braich should be enjoined from continuing the Washington Claim and from commencing other actions without first obtaining s.215 leave

Ratio Decidendi

The court held that s.215 of the BIA applies to foreign proceedings and that its protection extends to trustees' officers, employees and lawyer‑agents acting within the scope of their duties under the BIA; accordingly Braich must obtain leave of the bankruptcy court before commencing or continuing any action (including the Washington Claim) against the applicants relating to their acts pursuant to the BIA.

Court Disposition

Court declared that s.215 applies to foreign and domestic proceedings and extends to trustee's officers, employees and lawyer‑agents; application for injunctions adjourned; Washington Claim remained stayed; court remained seized and applicants given liberty to relist.

Orders

  • Declaration that Braich must obtain leave under s.215 of the BIA before commencing or continuing any proceedings against the applicants or their servants, agents or employees arising from the administration of the bankruptcy
  • Application for injunctive relief adjourned; no interlocutory injunction granted at this time