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Good afternoon.
Please find our summaries of the civil decision of the Court of
Appeal for Ontario for the week of July 4, 2022.
Golden Oaks Enterprises Inc. v. Scott is a
bankruptcy case in which the trustee successfully sued to set aside
payments made to certain investors in a Ponzi scheme. The appeal
was dismissed. The Court made it clear that claims initiated by
trustees to set aside transfers under value under
the Bankruptcy and Insolvency Act arise, for
limitation period purposes, when the trustee is appointed, and not
before. The knowledge and acts of the fraudster operating the
bankrupt corporation are not to attributed to the bankrupt
corporation for the purpose of having the limitation period running
earlier than the date of bankruptcy. To do otherwise would be to
defeat the purpose of the transfer under value sections in
the BIA and would permit fraudsters to get away
with their actions.
In Karkhanechi v Connor, Clark & Lunn
Financial Group Ltd, another limitation period case, the Court
found that the motion judge did not err in finding that the
appellant’s request for declaratory relief was statute-barred,
as it was tied to consequential relief. The Court also agreed with
the motion judge that there was no “rolling”
limitation period in this case just because the disputed payments
to the retired partner…
