Edmond Lamek

The appellant appealed a Notice of Disallowance issued by the trustee in bankruptcy of MF Global Canada Co. The appellant claimed the net positive balance of his futures account either on the day before the bankruptcy or on the date of bankruptcy.

The court dismissed the motion, finding that the decline in the account's value prior to bankruptcy was due to market forces, not a breach by the bankrupt.

Furthermore, the appellant had ignored margin calls exceeding his account balance, and the trustee was entitled to set off the appellant's debt against any amount owed.

In a court‑appointed receivership over payroll service companies, the receiver sought a declaration that a customer breached the stay provision of the receivership order by recalling funds previously transferred through a pre‑authorized debit.

The funds had already been deposited into the debtor’s consolidated account prior to the receivership order but were later reversed after the customer learned of the receivership.

The court held that once deposited, the funds constituted “Property” of the debtor within the meaning of the receivership order, even if intended for payroll.

By requesting reimbursement through its bank after receiving notice of the receivership, the customer exercised a remedy affecting the debtor’s property and breached the stay.

The court ordered repayment of the funds to the receiver with interest, while allowing the customer to prove a claim in the receivership distribution.