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The court allowed an appeal from a trustee’s disallowance of a bankruptcy claim, set aside the disallowance, and lifted the bankruptcy stay for fraud claims.
The Federal Court stayed RMI Marine’s in rem action against the vessel Scotia Tide in aid of a Nova Scotia CCAA proceeding, and ordered the vessel released from arrest.
The motions judge erred by failing to analyze whether the Nova Scotia action was an abuse of process; the Court found the Nova Scotia claim was filed and left dormant with no intention to prosecute, delayed for about a decade, was one of nine virtually identical actions by the same firm and plaintiffs, and the opt-in/opt-out distinction did not trump abuse considerations; accordingly the Nova Scotia proceedings were permanently and unconditionally stayed and the motions judge’s decision set aside.
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