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Bankrupt permitted to solicit former clients after involuntary sale of business by trustee in bankruptcy.
The appellant purchased the respondent's insurance brokerage business from a trustee in bankruptcy.
The agreement of purchase and sale did not contain a non-solicitation clause.
The appellant appealed a motion judge's declaration that the respondent was entitled to solicit his former clients.
The Court of Appeal dismissed the appeal, holding that in an involuntary alienation of assets in a bankruptcy, there is no common law implied obligation on the part of the bankrupt not to compete and solicit former clients.
Fraudulent conveyance actions are not subject to the six-year limitation period for actions upon the case.
The appellant law partnership, a creditor of a bankrupt management company, brought an action under the Fraudulent Conveyances Act to set aside a transfer of assets to a related company.
The motions judge granted summary judgment dismissing the action, finding it was barred by the six-year limitation period in the Limitations Act or by the equitable doctrine of laches.
The Court of Appeal allowed the appeal, holding that an action to set aside a fraudulent conveyance is neither an action on a simple contract nor an action upon the case, and thus is not caught by the six-year limitation period.
The Court also found a triable issue regarding whether the respondents suffered prejudice sufficient to establish the defence of laches.
