Re: Prentice

Re: Prentice

Master Hyslop reduced the trustee's claimed remuneration because the trustee failed to timely notify the official receiver and secure creditors' input (inspectors/meeting) after realizing assets exceeded the summary administration threshold; however, the trustee's work in recovering the inheritance justified a significant but reduced fee, which was fixed at $9,000 plus disbursements and GST in light of statutory principles and case law on fee assessment.

Citation
2008 BCSC 526
Parties
Trustee/applicant: D. Thode & Associates, Inc.; Bankrupt: Wanda Maria Magdelene Prentice; Respondent/regulator: Superintendent of Bankruptcy
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
29 April 2008
Procedural Posture
Bankruptcy Taxation of Trustee's Accounts / Hearing on Taxation of Final Statement of Receipts and Disbursements and Trustee Remuneration
Outcome
Trustee's taxation allowed in part; remuneration reduced
Legal Topics
Summary Vs Ordinary Administration, Trustee Remuneration, Creditor Oversight and Inspectors, Duty to Notify Official Receiver, Statutory Interpretation of BIA Sections
Source Language
English
Bankruptcy Insolvency Law Administrative Law Summary Vs Ordinary Administration Trustee Remuneration Creditor Oversight and Inspectors Duty to Notify Official Receiver Statutory Interpretation of BIA Sections

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Parties

D. Thode & Associates, Inc.

Trustee/applicant

Wanda Maria Magdelene Prentice

Bankrupt

Superintendent of Bankruptcy

Respondent/regulator

Procedural Posture

Bankruptcy Taxation of Trustee's Accounts / Hearing on Taxation of Final Statement of Receipts and Disbursements and Trustee Remuneration

Legal Issues

  1. 1 Whether trustee lawfully incurred legal fees and time without calling creditors or appointing inspectors after discovering an inheritance exceeding $10,000
  2. 2 Whether trustee complied with duty to notify the official receiver and convert from summary to ordinary administration in a timely manner
  3. 3 Proper quantum of trustee remuneration under s.39 of the Bankruptcy and Insolvency Act given work performed and benefit to creditors

Ratio Decidendi

Master Hyslop reduced the trustee's claimed remuneration because the trustee failed to timely notify the official receiver and secure creditors' input (inspectors/meeting) after realizing assets exceeded the summary administration threshold; however, the trustee's work in recovering the inheritance justified a significant but reduced fee, which was fixed at $9,000 plus disbursements and GST in light of statutory principles and case law on fee assessment.

Court Disposition

Trustee's taxation allowed in part; remuneration reduced

Orders

  • Trustee's remuneration allowed at $9,000.00 plus all disbursements and GST
  • Trustee to file an amended statement of receipts and disbursements