Creditors were granted extension of time to bring appeal 

Ontario civil | Courts and Procedure

BANKRUPTCY AND INSOLVENCY

Creditors were granted extension of time to bring appeal 

Legal services relating to divorce proceedings were rendered to bankrupt taxpayer by creditor DM from 2008 to 2010, and creditor ML Corp. from 2011 on. Canada Revenue Agency filed and registered tax lien in amount of $227,042 in 2010 based on re-assessments and obtained jeopardy order in 2013. Creditor MB Corp. made loan to bankrupt taxpayer to pay two execution creditors. Bankrupt taxpayer filed proposal under Bankruptcy and Insolvency Act in 2014. Creditors and revenue agency filed proofs of claim. Application judge dismissed creditors’ motions for solicitor’s liens and salvage lien in relation to services rendered or money lent to bankrupt taxpayers. Creditors brought applications for extension of time to file notice of appeal and for leave to appeal. Applications granted. Creditors were granted extension of time to bring appeal. As this was decision of Bankruptcy Court, creditors were to bring appeal within 10 days, as appeal to Court of Appeal lies under s. 193 of act, rather than under Rules of Civil Procedure. Creditors had bona fide intention to appeal before expiry of appeal period but misapprehended applicable rules, which explained delay. There would be no prejudice to responding parties in granting leave since funds were in court. Solicitor’s lien and charging order were form of property for purpose of s. 193(c) of act, so appeal was as of right since amounts exceeded $10,000. It was more than arguable that s. 193(c) of act was basis for court’s appeal jurisdiction and leave was not required. If leave were required, it would have been granted pursuant to s. 193(3) of act. 
Menzies Lawyers Professional Corp. v. Morton (Trustee of) (Jul. 27, 2015, Ont. C.A., P. Lauwers J.A., File No. CA M44416) Leave to appeal from 244 A.C.W.S. (3d) 494 was allowed.  256 A.C.W.S. (3d) 265.

 

 

 

 

Free newsletter

Our daily newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please complete the form below and click on subscribe for daily newsletters from Law Times.

Recent articles & video

Insurance lawyers reveal their referral philosophies

Court of Appeal rules auto insurer not liable for parental negligence claim stemming from accident

Refugee lawyers speak out on federal election campaign rhetoric

Employees of Aboriginal Legal Services join major union

Pro Bono Ontario to rename Ottawa help centre after David Scott

Chasm in opinions remains after statement of principles repeal

Most Read Articles

New equality measure approved by Law Society of Ontario as the statement of principles gets repealed

Judges call out lack of support for legal aid, pro bono amid MAG presence

Chasm in opinions remains after statement of principles repeal

Law students, paralegals can continue working on the same summary conviction matters