The plaintiffs, who were previously found to have fraudulently over-encumbered two properties and granted sham mortgages to frustrate creditors, commenced an action against the Public Guardian and Trustee challenging the Accountant's interpretation of a prior court order regarding the distribution of sale proceeds.
The plaintiffs sought a declaration that the Accountant owed money and an order for payment.
The defendant sought dismissal on the basis that the action was barred under the Public Guardian and Trustee Act and that proper notice had not been provided under the Crown Liability and Proceedings Act, 2019.
The court dismissed the action, finding that the plaintiffs had not alleged bad faith, that the action was statute-barred, and that the required notice had not been provided.
