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The court held that a defendant administratrix misappropriated estate funds sent to British Columbia and found no basis to stay the action in favour of Fiji.
The court held rental income from trust property belonged to the trust, refused an administrative-scheme route, but allowed a limited variation under s. 184 of the Community Charter.
The trial judge's factual findings that the appellant knowingly and recklessly misappropriated trust funds and acted with intent to deceive (including filing false payment declarations and issuing cheques without funds) establish dishonesty in a fiduciary capacity so that the debt falls within s.178.1(d) of the BIA and survives discharge; the Court of Appeal found no palpable and overriding error and dismissed the appeal.
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