Edell v. Canada (Revenue Agency)

Edell v. Canada (Revenue Agency)

The Statement of Claim was struck because the Federal Court lacked jurisdiction over the bankruptcy aspects under s.183 of the BIA, the plaintiff failed to pursue statutory remedies (s.51(3), s.181) and obtain leave where required (s.215), failed to plead actionable tortious conduct against CRA or a duty of care, and had not pursued judicial review as required by precedent; accordingly no stay of s.57 could be granted and the interim stay application was dismissed.

Citation
2008 FC 1306
Parties
Plaintiff: Stephen Anthony Edell; Defendant Creditor: Her Majesty the Queen (Canada Revenue Agency); Defendant Regulatory Official: The Superintendent of Bankruptcy; Defendant Trustee: Risman & Zysman Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
21 November 2008
Procedural Posture
Bankruptcy and Insolvency Action for Damages and Declaratory Relief / Motions to Strike and Application for Interim Stay (heard)
Outcome
Statement of Claim struck; application for interim stay of operation of s.57 dismissed; costs awarded to Superintendent and CRA.
Legal Topics
Deemed Assignment S.57, Proposal S.50, Jurisdiction of Federal Court Vs Provincial Superior Court, Motion to Strike (rule 221), Public Misfeasance / Abuse of Public Office, Requirement to Seek Judicial Review Before Damages Claim
Source Language
English
Bankruptcy and Insolvency Administrative Law Tort Law Civil Procedure Deemed Assignment S.57 Proposal S.50 Jurisdiction of Federal Court Vs Provincial Superior Court Motion to Strike (rule 221) +2 more

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Parties

Stephen Anthony Edell

Plaintiff

Her Majesty the Queen (Canada Revenue Agency)

Defendant Creditor

The Superintendent of Bankruptcy

Defendant Regulatory Official

Risman & Zysman Inc.

Defendant Trustee

Procedural Posture

Bankruptcy and Insolvency Action for Damages and Declaratory Relief / Motions to Strike and Application for Interim Stay (heard)

Legal Issues

  1. 1 Whether the Statement of Claim discloses a reasonable cause of action or is plain and obvious to fail
  2. 2 Whether a court may grant a stay of the deemed assignment into bankruptcy under s.57 of the Bankruptcy and Insolvency Act
  3. 3 Whether the Federal Court has jurisdiction to entertain claims arising under the Bankruptcy and Insolvency Act given s.183 conferring jurisdiction to provincial Superior Courts

Ratio Decidendi

The Statement of Claim was struck because the Federal Court lacked jurisdiction over the bankruptcy aspects under s.183 of the BIA, the plaintiff failed to pursue statutory remedies (s.51(3), s.181) and obtain leave where required (s.215), failed to plead actionable tortious conduct against CRA or a duty of care, and had not pursued judicial review as required by precedent; accordingly no stay of s.57 could be granted and the interim stay application was dismissed.

Court Disposition

Statement of Claim struck; application for interim stay of operation of s.57 dismissed; costs awarded to Superintendent and CRA.

Orders

  • The Statement of Claim is struck out.
  • The Plaintiff's application for a stay of the operation of section 57(a) of the Bankruptcy and Insolvency Act is dismissed.