Cameron (Bankrupt), Re, (2003) 327 A.R. 278 (CA)

• Judge: The decision of the Court of Appeal was delivered on May 8, 2003, by Hunt, J.A.
• Court: Court of Appeal (Alberta)
• Case Date: May 08, 2003
• Citations: (2003), 327 A.R. 278 (CA);2003 ABCA 142

Cameron (Bankrupt), Re (2003), 327 A.R. 278 (CA);

    296 W.A.C. 278

MLB headnote and full text

Temp. Cite: [2003] A.R. TBEd. MY.080

In The Matter Of The Bankruptcy of James Nelson Cameron

The Director of Maintenance Enforcement on Behalf of Barbara Gail McKay (applicant/appellant) v. James Nelson Cameron (respondent/respondent)

(No. 0203-0124-AC; 2003 ABCA 142)

Indexed As: Cameron (Bankrupt), Re

Alberta Court of Appeal

Conrad and Hunt, JJ.A., and Park, J.(ad hoc)

May 8, 2003.

Summary:

A trustee in bankruptcy paid in full a claim for maintenance arrears filed by the Director of Maintenance Enforcement less the statutory 5% levy paid to the Superintendent of Bankruptcy. The Director then asserted that the husband still owed support arrears equal to the 5% levy. The Director stated that the remaining debt should be paid either out of any surplus in the husband's bankruptcy estate or by the husband personally. The trustee applied for advice and directions.

The Registrar in Bankruptcy, in decisions reported [2001] A.R. Uned. 389 and [2002] A.R. Uned. 39, denied the Director's claim. The Director appealed.

The Alberta Court of Queen's Bench, in a decision reported 301 A.R. 228, dismissed the appeal. The Director appealed.

The Alberta Court of Appeal dismissed the appeal.

Editor's Note: See also 312 A.R. 198; 281 W.A.C. 198 (C.A.).

Bankruptcy - Topic 6106

Dividends - Superintendent's levy - Person liable for - A trustee in bankruptcy paid in full a claim for maintenance arrears filed by the Director of Maintenance Enforcement less the statutory 5% levy paid to the Superintendent of Bankruptcy pursuant to s. 147(1) of the Bankruptcy and Insolvency Act - The Director then asserted that the bankrupt still owed support arrears equal to the 5% levy - The Alberta Court of Appeal affirmed the denial of the Director's claim - The court held that the maintenance debt was fully paid - The court added that Parliament intended the levy to be borne by all creditors who received payments under the Act, whether or not their debts survived a discharge.

Cases Noticed:

Housen v. Nikolaisen et al. (2002), 286 N.R. 1; 219 Sask.R. 1; 272 W.A.C. 1; 211 D.L.R.(4th) 577, refd to. [para. 5].

Brookfield Construction Co., Re (1963), 42 D.L.R.(2d) 240 (N.S.S.C.), refd to. [para. 10].

Marzetti v. Marzetti (Bankrupt), [1994] 2 S.C.R. 765; 169 N.R. 161; 155 A.R. 340; 73 W.A.C. 340, refd to. [para. 16].

R. v. Dubois, [1985] 2 S.C.R. 350; 62 N.R. 50; 66 A.R. 202, refd to. [para. 18].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 121(4), sect. 136(1), sect. 144, sect. 147(1), sect. 147(2), sect. 178(1)(c) [para. 5].

Bankruptcy and Insolvency Act Regulations (Can.), Bankruptcy and Insolvency Rules, SOR/78-389, sect. 123(1)(a) [para. 5].

Bankruptcy and Insolvency Rules - see Bankruptcy and Insolvency Act Regulations (Can.).

Counsel:

G. Goulden, for the appellant;

No one appeared for the respondent.

This appeal was heard on February 28, 2003, by Hunt and Conrad, JJ.A., and Park, J.(ad hoc), of the Alberta Court of Appeal.

The decision of the Court of Appeal was delivered on May 8, 2003, by Hunt, J.A.