The plaintiffs, judgment creditors of Transport Development Inc. (TDI), brought a motion seeking an order compelling Vale Canada Limited (garnishee) and two interested numbered companies to answer questions and produce documents related to the assignment of a contract originally between Vale and TDI.
The plaintiffs sought this information to quantify amounts for a garnishment hearing, alleging the assignment might have been to avoid garnishment.
The interested parties opposed, arguing garnishment rules apply only to "debts" not "contracts," and citing delay, cost, and privacy concerns.
The court found that Rule 60.08(16)(d) provided broad jurisdiction to determine "any other matter in relation to a notice of garnishment," encompassing assigned debts and contracts.
The court emphasized the duty of honest performance in contracts and the relevance of the subsequent assignment to determine rights and liabilities.
The motion for disclosure was granted, subject to a sealing order, with costs reserved.