Brown v. Gentleman

Brown v. Gentleman

The trustee was validly appointed by the receiving order and had standing to sue; leave to adduce bank deposit slips was granted because the trustee had the duty to produce estate papers and could not explain the deposits at trial; credits of $5,000, $705.41 and $700 were allowed as deposited to company accounts; the $6,900 profit on land sale was offset by allowing equivalent contractor compensation; the alleged $10,000 chattel mortgage credit was disallowed for lack of proof; net judgment in favour of trustee fixed at $16,127.07.

Citation
[1971] SCR 501
Parties
Defendant/appellant: Lester A. Brown; Plaintiff/respondent: W.J.B. Gentleman, Trustee of the Estate of L.A. Brown Limited, a bankrupt
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
8 March 1971
Procedural Posture
Appeal and Cross Appeal From Provincial Court Judgment Arising From Trustee's Action in Queen's Bench Division / Supreme Court of Canada Final Judgment on Appeal (judgment Varied)
Outcome
Judgment varied: appeal dismissed in part, cross-appeal allowed in part; net judgment for respondent fixed at $16,127.07; application to adduce new evidence granted.
Legal Topics
Trustee Status to Sue, Accounting by Fiduciary, Admissibility of New Evidence, Chattel Mortgage Claim, Credits and Set Offs, Compensation for Services
Source Language
English
Commercial Law Company Law Bankruptcy Evidence Trustee Status to Sue Accounting by Fiduciary Admissibility of New Evidence Chattel Mortgage Claim +2 more

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Parties

Lester A. Brown

Defendant/appellant

W.J.B. Gentleman, Trustee of the Estate of L.A. Brown Limited, a bankrupt

Plaintiff/respondent

Procedural Posture

Appeal and Cross Appeal From Provincial Court Judgment Arising From Trustee's Action in Queen's Bench Division / Supreme Court of Canada Final Judgment on Appeal (judgment Varied)

Legal Issues

  1. 1 Whether the trustee appointed by receiving order had status to bring this action outside bankruptcy proceedings
  2. 2 Whether leave should be granted to adduce bank deposit slips as new evidence
  3. 3 Whether specific items (cheques, accounts receivable, machinery, parts) must be accounted for and credited

Ratio Decidendi

The trustee was validly appointed by the receiving order and had standing to sue; leave to adduce bank deposit slips was granted because the trustee had the duty to produce estate papers and could not explain the deposits at trial; credits of $5,000, $705.41 and $700 were allowed as deposited to company accounts; the $6,900 profit on land sale was offset by allowing equivalent contractor compensation; the alleged $10,000 chattel mortgage credit was disallowed for lack of proof; net judgment in favour of trustee fixed at $16,127.07.

Court Disposition

Judgment varied: appeal dismissed in part, cross-appeal allowed in part; net judgment for respondent fixed at $16,127.07; application to adduce new evidence granted.

Orders

  • Judgment varied and net amount awarded to respondent fixed at $16,127.07 in favour of W.J.B. Gentleman as trustee
  • Respondent entitled to trial costs; no costs awarded for appeals or for the motion to adduce deposit-slip evidence; respondent awarded costs of appellant's motion to adduce bankruptcy proceedings evidence