2 total
Security for costs posted by a bankrupt appellant is not an asset of the bankruptcy estate.
The Court of Appeal for Ontario addressed the disposition of $30,000 posted by the appellant, Sergio Grillone, as security for costs on appeal, following his bankruptcy.
The appellant argued the funds were assets of his estate to be distributed to creditors, while the respondent, Bluecore Capital Inc., sought payment of outstanding costs from the security.
The court rejected the appellant's submission, concluding that the security for costs was not an asset of the bankruptcy estate but was specifically posted to secure the costs of the appeal and related motions.
The respondent was found entitled to the full amount of the security to cover its outstanding costs.
The Court of Appeal dismissed the motion to vary as the appellant failed to demonstrate an error of law or misapplication of discretion.
The appellant, Sergio Grillone, brought a motion to vary a previous decision.
The Court of Appeal dismissed the motion, finding that the appellant failed to demonstrate any error of law or misapplication of discretion by the motion judge.
Costs of $10,000 were awarded to the respondent.
