Asian Concepts Franchising Corporation (Re)

Asian Concepts Franchising Corporation (Re)

Master Muir's decision was upheld: the established practice is to post security for costs into court unless parties agree otherwise; Adrenaline did not properly post security by the deadline because funds remained in counsel's trust account without agreement; there was no estoppel by convention or breach of...

Source-derived case information.

Citation
2017 BCSC 1338
Parties
Trustee: Grant Thornton Limited; Creditor/applicant: Adrenaline Drive Inc.; Debtor/respondent: Asian Concepts Franchising Corporation
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
9 June 2017
Procedural Posture
Bankruptcy and Insolvency Proposal / Application to Set Aside Registrar Decision on Security for Costs (appeal)
Outcome
Application dismissed; March 24, 2017 decision of Master Muir upheld.
Legal Topics
Security for Costs, Estoppel by Convention, Procedural Fairness, Standard of Review for Registrar
Source Language
english
Bankruptcy and Insolvency Civil Procedure Insolvency Practice Security for Costs Estoppel by Convention Procedural Fairness Standard of Review for Registrar

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Parties

Grant Thornton Limited

Trustee

Adrenaline Drive Inc.

Creditor/applicant

Asian Concepts Franchising Corporation

Debtor/respondent

Procedural Posture

Bankruptcy and Insolvency Proposal / Application to Set Aside Registrar Decision on Security for Costs (appeal)

Legal Issues

  1. 1 Whether security for costs ordered to be posted had to be paid into court
  2. 2 Whether Adrenaline complied with the August 29, 2016 order by holding funds in counsel's trust account
  3. 3 Whether trustee and respondent are estopped from asserting funds should have been paid into court

Ratio Decidendi

Master Muir's decision was upheld: the established practice is to post security for costs into court unless parties agree otherwise; Adrenaline did not properly post security by the deadline because funds remained in counsel's trust account without agreement; there was no estoppel by convention or breach of procedural fairness; no palpable or overriding error was shown, so the appeal to set aside the Registrar's decision was dismissed.

Court Disposition

Application dismissed; March 24, 2017 decision of Master Muir upheld.

Orders

  • Application by Adrenaline Drive Inc. dismissed
  • Costs awarded to respondent at Scale 3 payable by Adrenaline Drive Inc.