The moving party, Lifeline, sought an order under section 38 of the Bankruptcy and Insolvency Act to commence an action against LawPRO to recover on a judgment against the bankrupt lawyer.
Lifeline also sought an order that any recovery belong exclusively to it.
Another creditor, Bridgepoint, supported the section 38 order but opposed the exclusivity term, arguing it should be allowed to participate and share in the proceeds.
The court granted the section 38 order but refused the exclusivity term, holding that Bridgepoint was entitled to participate in the action and share in any recovery under the responsive insurance policies, subject to proving its claim.