Following protracted custody and access litigation involving two trials and a prior appeal, a costs award of $200,000 was made in favour of the father.
The mother subsequently filed for bankruptcy before the costs could be enforced.
The father sought to lift the automatic stay of bankruptcy under section 69.4 of the Bankruptcy and Insolvency Act to enforce the costs award against the mother's exempt assets (RRSPs).
The motion judge granted the order, finding material prejudice and equitable grounds.
The mother appealed, arguing the lift-stay remedy applies only to equalization claims, not costs awards.
The Court of Appeal dismissed the appeal, holding that the lift-stay remedy applies to costs awards in appropriate circumstances and that the motion judge properly found material prejudice and equitable grounds based on the mother's breach of representations to the court and the protracted nature of the family litigation.