Harms (Re)

Harms (Re)

Because the trustee failed to clarify the retainer and payment responsibility for legal fees relating to examinations, causing undue and unexplained delay in administration and in making distributions to creditors, the Registrar exercised discretion under BIA and relevant authorities to reduce the trustee's claimed remuneration from $13,334 to $9,000.

Citation
2011 BCSC 379
Parties
Debtor: Harold Harms; Trustee: Deane Gurney; Regulatory Authority: Office of the Superintendent of Bankruptcy; Inspector/attorney: Kent Wiebe
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
29 March 2011
Procedural Posture
Bankruptcy and Insolvency / Taxation of Trustee's Accounts
Outcome
Trustee's fees reduced to $9,000
Legal Topics
Trustee Fees, Delay in Administration, Section 163 Examinations, Inspector Conflict of Interest, Taxation of Accounts
Source Language
English
Bankruptcy and Insolvency Trustees' Remuneration Procedure Trustee Fees Delay in Administration Section 163 Examinations Inspector Conflict of Interest Taxation of Accounts

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Parties

Harold Harms

Debtor

Deane Gurney

Trustee

Office of the Superintendent of Bankruptcy

Regulatory Authority

Kent Wiebe

Inspector/attorney

Procedural Posture

Bankruptcy and Insolvency / Taxation of Trustee's Accounts

Legal Issues

  1. 1 Whether trustee's fees should be reduced because of undue delay in administering the estate
  2. 2 Whether the estate was liable for legal fees incurred for Section 163 examinations
  3. 3 Whether an inspector providing legal services created an improper conflict of interest

Ratio Decidendi

Because the trustee failed to clarify the retainer and payment responsibility for legal fees relating to examinations, causing undue and unexplained delay in administration and in making distributions to creditors, the Registrar exercised discretion under BIA and relevant authorities to reduce the trustee's claimed remuneration from $13,334 to $9,000.

Court Disposition

Trustee's fees reduced to $9,000

Orders

  • Trustee's taxable remuneration fixed at $9,000