DATE: 20040130

DOCKET: C38480

COURT OF APPEAL FOR ONTARIO

RE:

IN THE MATTER OF THE BANKRUPTCY OF LEONARD KRIESER AND IN THE MATTER OF THE SHAWN KRIESER TRUST AND THE RYAN KRIESER TRUST

BEFORE:

FELDMAN, MACPHERSON and CRONK JJ.A.

COUNSEL:

Andrew Lewis

for the appellants Shawn, Ryan Krieser Trusts and Stephen Beaumont

J. Siegel

for the respondent, the Trustee in Bankruptcy

HEARD & ENDORSED:

January 26, 2004

On appeal from the order of Justice John D. Ground of the Superior Court of Justice dated June 10, 2002.

A P P E A L B O O K E N D O R S E M E N T

[1] The appellants, the Shawn Krieser Trust and the Ryan Krieser Trust, appeal the judgment of Ground J., sitting as a bankruptcy judge, dated June 10, 2002. The bankruptcy judge dismissed an appeal from the decision of Registrar Sproat confirming the decision of the trustee to disallow the proofs of claims advanced by the trusts. In dismissing the appeal, the bankruptcy judge described the appeal and related proceedings brought by the appellants, through Stephen Beaumont, a trustee of the trusts, as “an ongoing abuse of the process of the bankruptcy court.”

[2] We agree with the conclusion reached by Ground J. that on this record there is no evidence that the two cheques made out to the trusts and apparently deposited into a numbered company controlled by the bankrupt were intended by the trusts to be loans to the company or to the bankrupt. Whatever the deposit slips may evidence, it is not a loan or loans.

[3] We would therefore dismiss the appeal with costs on the partial indemnity scale fixed in the amount of $5,000 and payable in the same manner as ordered by Ground J., by the trusts and Stephen Beaumont personally on a joint and several basis.

Signed: “K. Feldman J.A.”