The applicants sought to lift a stay of proceedings to enforce a prior summary judgment order for $102,500 against the respondents, who had filed a consumer proposal under the Bankruptcy and Insolvency Act.
The applicants argued the debt fell under exceptions for discharge (fraud, misrepresentation, or fiduciary defalcation) under s. 178(1) of the BIA.
The court reviewed the original application, the 2017 order, and new evidence, finding no basis for fraud, misrepresentation, or a fiduciary relationship.
The court concluded that the debt was a simple breach of contract and therefore dischargeable in bankruptcy.
The motion to lift the stay was dismissed as the applicants failed to demonstrate material prejudice or other equitable grounds.
