Canada Case Law

Smartt Inc. v. Siphon Enterprises Corp.

Court

Supreme Court of British Columbia

There were two material changes since the Original Security Order warranting a modest increase in security: (1) an increase in estimated trial time attributable to the fiduciary breach action (up to approximately 0.3–2 additional days) and (2) a likely need for expert evidence apportioned to this action (estimated $10,000 share). The plaintiff remains likely impecunious and consolidation did not materially increase complexity. Balancing all factors, the court increased total security from $20,000 to $30,000 and ordered the plaintiff to pay an additional $10,000 into counsel's trust within 30…

Source excerpt

• Security for costs
• Variation of order
• Fiduciary duty
• Consolidation of proceedings
• Expert evidence
• Consumer proposal

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McInnis (Re)

Court

Supreme Court of Nova Scotia

Given the PA's knowledge of a prior court order, its role in formulating and recommending an unreasonable and not‑in‑good‑faith consumer proposal, its attempt to remove the matter from court supervision by an informal fee agreement, and the seriousness of involvement by an unregulated debt advisor, the Court exercised its supervisory authority to tax the PA's accounts at nil (inclusive of disbursements) and ordered turnover of funds held to the prior trustee under s.67 BIA.

Source excerpt

• Consumer proposal
• Taxation of accounts
• Licensed insolvency trustee conduct and ethics
• Debt advisory marketplace and lead generators
• Turnover of after‑acquired property

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Aros Investments v. MacDonald

Court

Supreme Court of British Columbia

The court held that Article 4 preserved the earlier Baker debt, so Baker’s later payments did not acknowledge MacDonald’s debt. The claim was statute-barred.

• Consumer proposal
• Limitation period
• Assumption of mortgage
• Acceleration clause
• Estoppel
• Merger of obligations

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Hsu v. International Private Vaults Inc.

Court

Supreme Court of British Columbia

The court lifted a bankruptcy stay for two customers of a safety-deposit vault business and allowed one plaintiff to add the company’s principals as defendants.

• Stay of proceedings
• Consumer proposal
• Constructive trust
• Knowing receipt
• Knowing assistance
• Adding parties (joinder)

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Gonzalez Fricke v. Del Valle Rosado

Court

Supreme Court of British Columbia

Family law trial on divorce, support, and property division. The court imputed income to the respondent, ordered child and spousal support, and equalized family assets and debts.

• Imputed income
• Equal division of family property
• Retroactive support
• Consumer proposal
• Financial disclosure
• Contested business debt

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Caddick (Re)

Court

Supreme Court of British Columbia

The court held that a consumer proposal administrator was not entitled to fees after July 2018 because the proposal was treated as deemed annulled on the evidence.

• Consumer proposal
• Administrator fees
• Deemed annulment
• Dondale clause
• Taxation of accounts
• Revival of proposal

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Dunphy v. Boulard

Court

Supreme Court of British Columbia

The court dismissed an application to declare the claimant a trustee of CPP-related funds, finding no agreement to pay costs and no basis to reopen the CPP division.

• Canada pension plan division
• Certificate of costs
• Consumer proposal
• Constructive trust / trustee declaration
• Reconsideration and appeal periods
• Inherent jurisdiction

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Piekut v. Canada (Minister of National Revenue)

Court

British Columbia Court of Appeal

The Court of Appeal held that the seven-year period in s. 178(1)(g)(ii) of the Bankruptcy and Insolvency Act runs from the last date the bankrupt ceased to be a student, and dismissed the appeal.

• Discharge of debt
• Government student loans
• S.178(1)(g)(ii) interpretation
• Consumer proposal
• Bankruptcy-and-insolvency
• Student-loans

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Beaton (re)

Court

Supreme Court of Nova Scotia

Where an applicant has multiple periods of study with an intervening end-of-study date, the seven-year clock for s.178(2) BIA runs from the end of the applicable earlier period of study (the multiple date approach); therefore Mr. Beaton’s student loans that were over seven years old as measured from that earlier end-of-study date were discharged by his full performance of the consumer proposal and any post-performance payments or withheld entitlements must be returned.

Source excerpt

• Student loan discharge
• Consumer proposal
• Hardship discharge
• Statutory interpretation
• Costs

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Summit Leasing Corporation v. Ali

Court

Supreme Court of British Columbia

The court dismissed an application to keep a lease debt alive after bankruptcy, finding Summit Leasing had not proved deceit, false pretences, or fraudulent misrepresentation.

• Discharge of debt
• False pretences
• Fraudulent misrepresentation
• Consumer proposal
• Default judgment
• Bankruptcy-and-insolvency

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