The plaintiff bank sought leave under s. 215 of the Bankruptcy and Insolvency Act to continue an action against a trustee in bankruptcy for damages arising from an unpaid overdraft.
The bank alleged the trustee breached its duty of care by failing to provide notice of the debtor's proposal, sale of assets, and bankruptcy.
The court found that the bank's claim was not frivolous or vexatious and disclosed a factual foundation, particularly regarding the trustee's failure to notify the bank of the bankruptcy when the debtor's accounts held a positive balance.
Leave to continue the action was granted.
