The appellant trustee in bankruptcy appealed a decision according the respondent Workers' Compensation Board the status of a secured creditor.
The Board claimed unpaid assessments from the bankrupt employer, arguing that provincial legislation created a charge on the employer's property.
The Supreme Court of Canada allowed the appeal, holding that the federal Bankruptcy Act determines priorities in bankruptcy.
The provincial legislation, while valid, is inoperative in a bankruptcy situation to the extent it conflicts with the federal scheme of distribution.
