Edell v. Canada Revenue Agency
The Court dismissed the appeal because the bankruptcy court correctly concluded there was no basis to annul the bankruptcy: the CRA lawfully exercised its voting right to reject the proposal, the appellant knew bankruptcy was likely, and a Federal Court damages proceeding cannot retroactively affect the legal...
Source-derived case information.
- Citation
- 2012 ONCA 8
- Parties
- Appellant: Stephen Anthony Edell; Respondent: Canada Revenue Agency; Respondent: Industry Canada (Superintendent in Bankruptcy and Official Receiver); Respondent: Risman & Zysman Inc.
- Court
- Court of Appeal for Ontario
- Jurisdiction
- Canada
- Judgment Date
- 5 January 2012
- Procedural Posture
- Bankruptcy Appeal / Appeal Heard and Released Orally at Court of Appeal (decision)
- Outcome
- Appeal dismissed
- Legal Topics
- Annulment of Bankruptcy, Stay of Bankruptcy Pending Litigation, Creditor Voting on Proposals, Jurisdictional Limits Between Federal Damages Proceedings and Provincial Bankruptcy Proceedings
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Stephen Anthony Edell
Appellant
Canada Revenue Agency
Respondent
Industry Canada (Superintendent in Bankruptcy and Official Receiver)
Respondent
Risman & Zysman Inc.
Respondent
Procedural Posture
Bankruptcy Appeal / Appeal Heard and Released Orally at Court of Appeal (decision)
Legal Issues
- 1 Whether the appellant's bankruptcy should be annulled
- 2 Whether a stay of the bankruptcy should be granted pending the outcome of the Federal Court damages action
- 3 Whether the CRA's vote rejecting the proposal invalidated the bankruptcy
Ratio Decidendi
The Court dismissed the appeal because the bankruptcy court correctly concluded there was no basis to annul the bankruptcy: the CRA lawfully exercised its voting right to reject the proposal, the appellant knew bankruptcy was likely, and a Federal Court damages proceeding cannot retroactively affect the legal validity of the bankruptcy; therefore no stay should be granted.
Court Disposition
Appeal dismissed
Orders
- Appeal dismissed
- Request to stay the bankruptcy and adjourn the appeal denied
Full Case Text
Judgment text and source record
1 paragraphs
Edell v. Canada Revenue Agency Collection Decisions of the Court of Appeal Date 2012-01-05 Neutral citation 2012 ONCA 8 Docket numbers C53613 Judges Sharpe, Robert J.; Blair, Robert Ashley; Rouleau, Paul S. Subject Civil Decision Content CITATION: Edell v. Canada Revenue Agency, 2012 ONCA 8 DATE: 20120105 DOCKET: C53613 COURT OF APPEAL FOR ONTARIO Sharpe, Blair and Rouleau JJ.A. BETWEEN Stephen Anthony Edell Appellant and Canada Revenue Agency, Industry Canada (Superintendent in Bankruptcy and Official Receiver) and Risman & Zysman Inc. Respondents Stephen Edell, in person Shahana Kar, for the respondent Canada Revenue Agency Heard & released orally: December 22, 2011 On appeal from the order of Justice S.E. Pepall of the Superior Court of Justice dated March 28, 2011. ENDORSEMENT [1] The bankruptcy court judge refused to annul the appellant’s bankruptcy and refused to stay the bankruptcy pending the outcome of the appellant’s damages action against the CRA in the Federal Court. [2] The appellant appeals that order but in oral submissions asked us to stay the bankruptcy and adjourn the appeal against the refusal to nullify the bankruptcy pending the decision of the Federal Court in the damages action. [3] In our view, the appeal and the request for a stay must be dismissed. We see no error on the part of the bankruptcy court judge in concluding that there was no basis to set aside the bankruptcy. [4] The CRA exercised its statutory right to vote down the appellant’s proposal. The appellant knew when he made the proposal that there was every likelihood that it would be voted down and that bankruptcy would follow. [5] The Federal Court of Appeal has concluded that the bankruptcy does not prevent the appellant from pursuing his personal claim in the Federal Court. The issue of whether the CRA’s action in relation to the proposal warrant nullification of the bankruptcy are for the Ontario Bankruptcy Court. Whatever the Federal Court decides in the damages action, that cannot affect the legal validity of the bankruptcy. We see no basis for staying the bankruptcy in the circumstances. [6] Accordingly, the appeal is dismissed with costs fixed at $5,000 inclusive of disbursements and applicable taxes. “Robert J. Sharpe J.A.” “R.A. Blair J.A.” “Paul Rouleau J.A.”