The bankrupt brought a repeatedly shifting motion seeking directions, stays, disclosure, and litigation “guardrails” concerning estate litigation being prosecuted or assigned by the trustee in bankruptcy.
The court held that the bankrupt lacked standing under s. 37 of the Bankruptcy and Insolvency Act because he was not an aggrieved person, and also failed to qualify under s. 119(2) because he was not an interested person and had adduced no evidence of fraud or bad faith by inspectors.
The court further rejected the factual premise of the alleged conflict, finding no evidence of BIA “relatedness” and no basis to interfere with the trustee’s conduct of the Whitehorse Action or with case management orders made by a Superior Court judge.
The motion was dismissed with prejudice.
Because the bankrupt filed improper, late, AI-generated materials containing hallucinated or unreliable citations and made unfounded allegations against the trustee and inspectors, the trustee was awarded substantial indemnity costs of $12,366.72.