3 total
The court upheld the receiver's disclaimer of a pre-construction condominium purchase agreement.
The appellant purchased a condominium unit under an agreement of purchase and sale in a building that subsequently entered receivership.
The receiver sought to disclaim the purchase agreement to maximize asset recovery.
The appellant opposed the disclaimer, relying on a supplementary agreement with the developer and its president.
The motion judge found the supplementary agreement unenforceable due to an entire agreement clause in the subsequent purchase agreement and granted the disclaimer order.
The appellant appealed on three grounds: that the motion judge failed to apply the Tercon test for entire agreement clauses, failed to consider public policy, and erred in applying the disclaimer test regarding equities.
The Court of Appeal dismissed the appeal, finding the motion judge properly conducted the Tercon analysis, identified no overriding policy reason to override the contractual terms, and correctly applied the disclaimer test by considering all circumstances and concluding the equities did not support preferring the appellant's claim over other creditors.
The court granted a bankruptcy order against a guarantor who failed to meet his liabilities under promissory notes.
The court granted a bankruptcy order against Thomas Dylan Suitor, finding that the applicant, The Fuller Landau Group Inc. (as Receiver of The Lion’s Share Group Inc.), established the necessary statutory requirements under the Bankruptcy and Insolvency Act.
The court found that Mr. Suitor was personally liable under promissory notes as both borrower and guarantor, that he owed debts exceeding $1,000, and that he had ceased to meet his liabilities generally as they became due.
The court also found the existence of multiple creditors and/or special circumstances justifying the order, and declined to exercise its discretion to refuse the order.
Motion to appoint interim receiver granted to protect debtor's estate pending bankruptcy application.
The Receiver of The Lion's Share Group Inc. brought a motion to appoint an interim receiver over the property of the debtor pursuant to section 46 of the Bankruptcy and Insolvency Act.
The Receiver argued that the debtor owed over $23 million under various promissory notes and personal guarantees, and that an interim receiver was necessary to prevent the dissipation of assets.
The debtor opposed the motion, arguing he was not personally liable under the guarantees and that the transactions in question were in the ordinary course of business.
The court granted the motion, finding that the Receiver was likely to succeed on the bankruptcy application and that there was an immediate need to protect the estate given the debtor's recent transactions and the complex web of related entities.
