The appellant, an unsecured creditor in a bankruptcy, obtained an order under s. 38 of the Bankruptcy and Insolvency Act to recover $100,000 US paid by the bankrupt to the respondent after the bankruptcy.
The application judge allowed the respondent to retain a portion of the funds on the basis of an implied trust and s. 99(1) of the BIA.
The Court of Appeal allowed the appeal, finding that the three certainties of a trust were not met and that s. 99(1) did not apply.
The respondent was ordered to pay the appellant the $100,000 US.