The respondent, a judgment creditor of a deceased's estate and his company, brought an action claiming relief under the oppression remedy provisions of the Business Corporations Act.
The trial judge found that the transfer of the company's assets to other companies controlled by the deceased's widow, and the assumption of a mortgage, constituted oppression and ordered the appellants to pay the judgment debt.
On appeal, the Court of Appeal found that the trial judge misapprehended the evidence regarding the mortgage, which was a legitimate charge against the company's assets.
The Court also held that the respondent, as a contingent creditor, did not have a reasonable expectation that the company would be managed to ensure his debt was paid in priority to others, including tax authorities.
The appeal was allowed and the action dismissed.