Bonang v. Wolfridge Farm Ltd., 2015 NSSC 168

Judge:LeBlanc, J.
Court:Supreme Court of Nova Scotia
Case Date:May 06, 2015
Jurisdiction:Nova Scotia
Citations:2015 NSSC 168;(2015), 360 N.S.R.(2d) 331 (SC Reg.)
 
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Bonang v. Wolfridge Farm Ltd. (2015), 360 N.S.R.(2d) 331 (SC Reg.);

    1135 A.P.R. 331

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Temp. Cite: [2015] N.S.R.(2d) TBEd. JN.011

In the Matter of the recognition of foreign proceeding of Wolfridge Farm Ltd. of North Haven, Connecticut in the United States of America

(Hfx. No. 437879; 2015 NSSC 168)

Indexed As: Bonang v. Wolfridge Farm Ltd.

Nova Scotia Supreme Court

In Bankruptcy and Insolvency

LeBlanc, J.

June 5, 2015.

Summary:

Wolfridge Farm Ltd. sought an order under s. 270 of the Bankruptcy and Insolvency Act, recognizing its U.S. bankruptcy proceeding as a main proceeding.

The Nova Scotia Supreme Court, In Bankruptcy and Insolvency, dismissed the application.

Conflict of Laws - Topic 5602

Bankruptcy and insolvency - General - Recognition of foreign bankruptcy - [See Conflict of Laws - Topic 5606 ].

Conflict of Laws - Topic 5606

Bankruptcy and insolvency - General - Effect of foreign bankruptcy - Wolfridge Farm Ltd. sought an order under s. 270 of the Bankruptcy and Insolvency Act, recognizing its U.S. bankruptcy proceeding as a main proceeding - The Nova Scotia Supreme Court, In Bankruptcy and Insolvency, dismissed the application - There was no reliable and objective evidence to support Wolfridge's claim that its focus had shifted to real estate development in the U.S. - Wolfridge's real and personal property in Nova Scotia was of greater value than its U.S. property - The secured creditors were evenly divided between Canada and the U.S. - Debts to secured creditors were mainly owed to creditors in Canada - In a letter dated four days before the U.S. bankruptcy proceedings were commenced, Wolfridge's vice-president represented that the company was farming in Nova Scotia, where its corporate offices were also located - There was no mention that Wolfridge was winding down and shifting its focus to property in the U.S. or that the corporate offices had changed to a Connecticut office - Wolfridge's centre of main interest was in Nova Scotia - Accordingly, the U.S. proceeding was not recognized as a foreign main proceeding - In any event, Farm Credit Canada's foreclosure proceeding would have been exempt under s. 271(3) of the Act.

Cases Noticed:

Probe Resources Ltd. (Bankrupt), Re, [2011] B.C.T.C. Uned. 552; 2011 BCSC 552, refd to. [para. 30].

Caesar's Entertainment Operating Co., Re, 2015 ONSC 712, refd to. [para. 32].

Lightsquared LP, Re, [2012] O.T.C. Uned. 2994; 2012 ONSC 2994, refd to. [para. 32].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 270 [para. 25].

Authors and Works Noticed:

Wood, Roderick J., Bankruptcy and Insolvency Law (2009), pp. 557, 558 [para. 27]; 558 [para. 28].

Counsel:

Paul E. Radford, Q.C., for the applicant;

James J. White, for Gerald P. Bonang and Dianne Bonang;

Jeffrey P. Flinn and Gavin D.F. MacDonald, for Farm Credit Canada.

This application was heard at Halifax, N.S., on May 6, 2015, by LeBlanc, J., of the Nova Scotia Supreme Court, In Bankruptcy and Insolvency, who delivered the following decision on June 5, 2015.

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