Insolvency & Collections
Provincial Trusts in a Bankruptcy
In The Guarantee Company of North America v. Royal Bank of Canada, 2019 ONCA 9 the Court of Appeal held that the statutory trust created by s.8 of the Construction Act, R.S.O. 1990, c. C.30 (the CA) is a trust...Read More
Are Licensed Insolvency Trustees Liable for Complying with Environmental Cleanup Orders?
The recent decision of the Supreme Court of Canada in Orphan Well Association v. Grant Thornton Ltd., 2019 SCC 5 clarified the extent of a licensed insolvency trustee's obligation when it comes to environmental cleanup obligations at least in the...Read More
Government Student Loans and Bankruptcy in Canada
As bankruptcy practitioners are aware, there was a time when the Bankruptcy and Insolvency Act (the "BIA") did not afford the special status to government student loans as it does now. During that time, however, the case law developed to...Read More
As a general rule, when a person signs a contract, he or she accepts the terms of the contract and agrees to be bound by them. The words used in the contract typically demonstrate the obligations that the person takes...Read More
Blog Update – Bankruptcy: Federal vs. Provincial Jurisdiction and Obtaining A "Fresh Start"
On April 25, 2014, I wrote a blog on the interaction of: provincial legislation which allows a provincial government to continue the suspension of a bankrupt's driver's license as a result of an outstanding judgment against him or her arising...Read More
CRA Must Seek Leave to Issue a Notice of Assessment Post Bankruptcy
Last year the writer wrote a blog regarding tax debtors who file an assignment in bankruptcy rather than appealing a large assessment that the tax debtor received from the Canada Revenue Agency (the "CRA"). As a corollary to that blog,...Read More
Guarantors must exercise care when paying out a guaranteed debt where there is a co-guarantor
The Ontario Court of Appeal recently considered the situation of a guarantor (otherwise known as a surety) paying out a guaranteed debt where there were a co-guarantor and the right of the guarantor to then claim contribution from the co-guarantor. ...Read More
Banks do not owe a duty of care to their customers
A recent Ontario case confirms that, absent special circumstances, banks do not owe a duty of care to their customers. In Royal Bank of Canada v. Dhupar, 2014 CarswellOnt 7281 (S.C.J.), the corporate defendants purchased franchises which were financed by...Read More
Assignment in bankruptcy instead of appealing a CRA assessment
Are you considering filing an assignment in bankruptcy rather than appealing a large assessment that you received from the Canada Revenue Agency? If so, you better think twice since it could have a large impact on what kind of order...Read More
Can a Secured Debtor Retain A Business’ Goodwill?
I was recently involved in an interesting case in which I obtained a receivership order for a secured creditor of an insolvent dentist.This case involved two interesting issues. The first was the need to have the Royal College of Dental Surgeons involved...Read More