Individual lost right to deal with own property after filing in bankruptcy

Bankruptcy and Insolvency – Property of bankrupt – Miscellaneous

Respondent was individual, who was beneficiary of spouse's life insurance policy. After policy was issued, individual declared bankruptcy. Spouse died while individual was still in bankruptcy. Insurer denied individual's claim, claiming that spouse had committed misrepresentation by failing to disclose bankruptcy. Individual brought action against insurer. During course of this action, individual discovered claim in negligence against appellant, who was spouse's insurance broker. Individual brought subject action against broker. Broker moved for summary judgment against individual, claiming he could not bring action in own name due to bankruptcy. Individual brought cross-motion against broker, for nunc pro tunc order seeking standing. Motion judge found in favour of individual. Broker appealed from this finding. Appeal allowed; subject action dismissed. Individual lost right to deal with own property, after filing in bankruptcy. There was no provision for automatic revesting, after individual was discharged from bankruptcy. Vesting was not injustice in this case. Proper result was to set aside order and dismiss action, as against broker.

Thistle v. Schumilas (2020), 2020 CarswellOnt 1322, 2020 ONCA 88, David Watt J.A., C.W. Hourigan J.A., and G.T. Trotter J.A. (Ont. C.A.).

Case Law is a weekly summary of notable civil and criminal court decisions by the Supreme Court of Canada, the Federal Court of Canada and all Ontario courts. These cases may be found online in WestlawNext Canada. To subscribe, please visit store.thomsonreuters.ca

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

The tale of Umar Zameer's two trials – the criminal court and the court of public opinion

Court of Appeal clarifies how tort of abuse of process interacts with criminal proceedings

Mariam Moktar elected second vice-president of the Ontario Bar Association

Ontario Superior Court grants plaintiff's motion to add new defendant in slip and fall case

Ontario Court of Appeal dismisses First Nations' appeal over environmental regulation changes

LSO bencher Murray Klippenstein given "substantial indemnity" costs in suit against legal regulator

Most Read Articles

LSO bencher Murray Klippenstein given "substantial indemnity" costs in suit against legal regulator

The tale of Umar Zameer's two trials – the criminal court and the court of public opinion

Ontario Superior Court finds plaintiff contributorily negligent in slip and fall case

Court of Appeal clarifies how tort of abuse of process interacts with criminal proceedings