2 total
Motion to lift bankruptcy stay denied; creditor's claims of constructive trust and fraud lacked merit.
The moving party creditor sought to lift the stay of proceedings under s. 69.4 of the Bankruptcy and Insolvency Act to continue two civil actions against the bankrupt.
The creditor alleged the bankrupt owed fiduciary obligations, that the loaned funds were subject to a constructive trust, and that the bankrupt made fraudulent misrepresentations.
The court dismissed the motion, finding that the civil actions had little prospect of success as the debt was a standard unsecured loan governed by a promissory note.
The court also found that lifting the stay would prejudice other unsecured creditors and delay the administration of the estate.
Summary judgment denied; genuine issues and credibility conflicts required a trial.
The plaintiff collections agency, as assignee of an alleged construction-material debt, moved for summary judgment for breach of contract and to set aside a property transfer as a fraudulent conveyance.
The court held there were genuine issues requiring a trial, including whether any post-September 2023 supply contract existed, whether the defendants ordered or received the disputed materials, and whether one defendant was party to any such agreement.
The evidentiary record raised significant credibility disputes, including unsigned delivery documentation, disputed invoices, and contested notice evidence, making fair adjudication on a paper record inappropriate under Rule 20.04 principles.
On the fraudulent conveyance claim under s. 2 of the Fraudulent Conveyances Act, the court found the necessary intent findings could not be made summarily and that alleged badges of fraud required trial-level fact-finding.
The summary judgment motion was dismissed.
