The court addressed a dispute between successive trustees in bankruptcy regarding the payment of fees in a no-asset estate.
The former proposal trustee, Dodick Landau Inc., opposed the motion by the substituted trustee, A. Farber & Partners Inc., for approval of its fees and discharge, arguing that Farber was required to pay Dodick Landau's fees under s. 36(2)(e) of the Bankruptcy and Insolvency Act.
The court held that funds received by Farber from a secured creditor's indemnity were not "funds available" to the estate for the purpose of paying the former trustee, as these were third-party funds and not estate assets.
Farber's motion was granted, and Dodick Landau's opposition was dismissed.
