Re: Fletcher

Re: Fletcher

The court granted substitution under s.41(11) because the discharged trustee had not taken steps to realize assets (surplus income/after-acquired property) and the required work exceeded incidental 'tying up loose ends' under s.41(10), making appointment of KPMG necessary to complete administration.

Citation
2008 BCSC 313
Parties
Applicant/trustee Nominee: KPMG Inc.; Respondent/former Trustee: D. Thode & Associates, Inc.; Bankrupt: Colleen Jaye Fletcher aka Colleen Jaye Nielsen aka Colleen Jaye Creusot
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
12 March 2008
Procedural Posture
Bankruptcy / Application for Substitution of Trustee Under S.41(11) of the BIA
Outcome
Application granted; KPMG Inc. appointed trustee in place of D. Thode & Associates, Inc.
Legal Topics
Substitution of Trustee, Trustee Discharge, Surplus Income, After Acquired Property, Garnishment, Trustee Shopping
Source Language
English
Bankruptcy Insolvency Substitution of Trustee Trustee Discharge Surplus Income After Acquired Property Garnishment Trustee Shopping

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Parties

KPMG Inc.

Applicant/trustee Nominee

D. Thode & Associates, Inc.

Respondent/former Trustee

Colleen Jaye Fletcher aka Colleen Jaye Nielsen aka Colleen Jaye Creusot

Bankrupt

Procedural Posture

Bankruptcy / Application for Substitution of Trustee Under S.41(11) of the BIA

Legal Issues

  1. 1 Whether the court may appoint a substitute trustee under s.41(11) of the BIA
  2. 2 Whether a discharged trustee remains obligated under s.41(10) to complete administration
  3. 3 Whether the trustee's prior discharge and inactivity preclude substitution

Ratio Decidendi

The court granted substitution under s.41(11) because the discharged trustee had not taken steps to realize assets (surplus income/after-acquired property) and the required work exceeded incidental 'tying up loose ends' under s.41(10), making appointment of KPMG necessary to complete administration.

Court Disposition

Application granted; KPMG Inc. appointed trustee in place of D. Thode & Associates, Inc.

Orders

  • KPMG Inc. is appointed trustee of the bankruptcy estate of Colleen Jaye Fletcher in substitution for D. Thode & Associates, Inc.
  • No costs awarded against the former trustee, D. Thode & Associates, Inc.