Perras v. Boulet et al.

Perras v. Boulet et al.

Fees and expenses incurred by licensed trustees under an approved proposal are 'costs of administration' within s.95(1)(b) of the Bankruptcy Act and, when the proposal provided for their priority and was accepted by creditors and approved by the court, those fees are entitled to be collocated and paid by preference out of the proceeds realized from the property of the debtor.

Citation
[1959] SCR 838
Parties
Plaintiff/respondent: Georges Henri Boulet; Plaintiff/respondent: Edgar Ludger Boulet; Defendant/appellant: Claude Perras; Debtor: The Callway Sash & Door Incorporated
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
2 November 1959
Procedural Posture
Bankruptcy and Insolvency Appeal / Appeal to Supreme Court of Canada
Outcome
Appeal dismissed
Legal Topics
Trustee Remuneration, Proposals Under Part III, Priority of Claims, Costs of Administration
Source Language
English
Bankruptcy and Insolvency Trustee Remuneration Proposals Under Part III Priority of Claims Costs of Administration

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Parties

Georges Henri Boulet

Plaintiff/respondent

Edgar Ludger Boulet

Plaintiff/respondent

Claude Perras

Defendant/appellant

The Callway Sash & Door Incorporated

Debtor

Procedural Posture

Bankruptcy and Insolvency Appeal / Appeal to Supreme Court of Canada

Legal Issues

  1. 1 Whether fees and expenses of trustees incurred under an approved proposal prior to bankruptcy constitute 'costs of administration' entitled to preferential payment under s.95(1)(b) of the Bankruptcy Act
  2. 2 Whether a former trustee's claim under an approved proposal is privileged after a subsequent receiving order and appointment of a new trustee

Ratio Decidendi

Fees and expenses incurred by licensed trustees under an approved proposal are 'costs of administration' within s.95(1)(b) of the Bankruptcy Act and, when the proposal provided for their priority and was accepted by creditors and approved by the court, those fees are entitled to be collocated and paid by preference out of the proceeds realized from the property of the debtor.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Respondents entitled to be collocated and paid by preference the sum of $4,003.41; the balance of their claim to rank as ordinary creditors