The trustee in bankruptcy appealed a motion judge's dismissal of its claim for half the proceeds of a fire insurance policy on the bankrupt's former matrimonial home, and the allowance of the bankrupt's former spouse's claim for 100% of a debt she paid as a joint guarantor.
The former spouse cross-appealed the dismissal of her claim for another guaranteed debt based on the rule against double proof.
The Court of Appeal allowed the trustee's appeal regarding the insurance proceeds, finding no evidence of a matrimonial settlement giving the spouse sole ownership.
The Court dismissed the trustee's appeal regarding the first guarantee, upholding the motion judge's finding that the spouse's 'just proportion' was 100% due to pressure and lack of understanding.
The Court also dismissed the cross-appeal, affirming that the rule against double proof prevented the spouse from claiming the second guaranteed debt while the principal creditor also claimed it.