The appellant law partnership, a creditor of a bankrupt management company, brought an action under the Fraudulent Conveyances Act to set aside a transfer of assets to a related company.
The motions judge granted summary judgment dismissing the action, finding it was barred by the six-year limitation period in the Limitations Act or by the equitable doctrine of laches.
The Court of Appeal allowed the appeal, holding that an action to set aside a fraudulent conveyance is neither an action on a simple contract nor an action upon the case, and thus is not caught by the six-year limitation period.
The Court also found a triable issue regarding whether the respondents suffered prejudice sufficient to establish the defence of laches.
