Preet Wadhwa

A creditor applied to annul the consumer proposals of two undischarged bankrupts.

The debtors had filed the consumer proposals to escape opposed discharges, but failed to disclose significant real estate transactions and income to the administrator and creditors.

The court found that the debtors breached their duties of good faith and full disclosure under the Bankruptcy and Insolvency Act.

The court exercised its discretion to annul the consumer proposals.

The plaintiffs sued their real estate agent, alleging he defrauded them into purchasing a home with an illegal basement and securing a private mortgage.

The defendant agent moved for leave to issue a third party claim against the plaintiffs, a restaurant corporation, and his own investment company for contribution and indemnity regarding the mortgage loan default.

The court dismissed the motion, finding that the proposed third party claim was actually a breach of contract claim that was discoverable when the loan defaulted in December 2021.

Consequently, the claim was statute-barred under the Limitations Act, 2002, and granting leave would cause non-compensable prejudice to the plaintiffs.

The appellant appealed a summary judgment order finding him jointly and severally liable for a debt.

He argued the motion judge ignored evidence that the respondent owed him money and that a settlement acknowledgement was signed under duress.

The Divisional Court dismissed the appeal, finding the motion judge properly considered the evidence, including a written acknowledgement of final settlement, and that the appellant had not requested to provide oral evidence on the duress claim at the motion.