Centennial Realties v. Spiropoulos,

• Jurisdiction: Nova Scotia
• Judge: Michael MacDonald
• Neutral Citation: 2001 NSSC 155
• Citation: (2001), 199 N.S.R.(2d) 214 (SC),2001 NSSC 155,199 NSR(2d) 214,(2001), 199 NSR(2d) 214 (SC),199 N.S.R.(2d) 214
• Date: 15 August 2001
• Court: Supreme Court of Nova Scotia (Canada)

Centennial Realties v. Spiropoulos (2001), 199 N.S.R.(2d) 214 (SC);

 623 A.P.R. 214

MLB headnote and full text

Temp. Cite: [2001] N.S.R.(2d) TBEd. DE.027

Centennial Realties by its lawful assignee, James Georgantas (applicant/plaintiff) v. Danai Spiropoulos (sometimes also known as Danai Spire or Spiro) and Sophia Spiropoulos (sometimes also known as Sophia Maxwell) and Arthur Spiropoulos of Halifax in the Province of Nova Scotia (respondents/defendants)

(S.H. No. 165787; 2001 NSSC 155)

Indexed As: Centennial Realties v. Spiropoulos

Nova Scotia Supreme Court

Michael MacDonald, A.C.J.S.C.

August 15, 2001.

Summary:

A debtor conveyed real property to his daughters. A creditor brought an action under the Statute of Elizabeth to set aside the conveyance as being fraudulent. The creditor sought summary judgment.

The Nova Scotia Supreme Court granted summary judgment, setting aside the con­veyance as a fraudulent conveyance.

Fraud and Misrepresentation - Topic 1406

Fraudulent conveyances and preferences - Impeachable conveyances and preferences under Statute of Elizabeth (1571) - Con­ditions precedent to setting aside con­veyance - A debtor conveyed real property to his daughters - A creditor sought sum­mary judgment to set aside the conveyance as being fraudulent under the Statute of Elizabeth - The Nova Scotia Supreme Court granted summary judgment - The debtor failed to raise an arguable issue to be tried - The conveyance was made with­out valuable consideration (no money changed hands) - Even if the daughters were obligated to pay mortgages on the property, there was still no valuable con­sideration where a substantial equity in­terest was conveyed without consideration (i.e., mortgage debts less than actual value of property) - Where the debtor had no other property to satisfy the creditor's claim (which existed prior to the con­veyance), the debtor's intention was to defeat or delay the creditor and the con­veyance had the effect of delaying or defeating the creditor.

Cases Noticed:

Carl B. Potter Ltd. v. Antil Canada Ltd. and Mercantile Bank of Canada (1976), 15 N.S.R.(2d) 408; 14 A.P.R. 408 (C.A.), refd to. [para. 2].

Bank of Nova Scotia et al. v. Dobrowski (1977), 23 N.S.R.(2d) 532; 32 A.P.R. 532 (C.A.), refd to. [para. 2].

Ocean Contractors Ltd. v. Acadian Con­struction Ltd. et al. (1991), 107 N.S.R.(2d) 366; 290 A.P.R. 366 (C.A.), refd to. [para. 2].

Bank of Montreal v. Crowell (1980), 37 N.S.R.(2d) 292; 67 A.P.R. 292 (T.D.), refd to. [para. 3].

McCoy (E.E.) Co. et al. v. Wiseman et al. (1988), 80 N.S.R.(2d) 1; 200 A.P.R. 1 (C.A.), dist. [para. 8].

Counsel:

W. Michael Cooke, Q.C., for the appli­cant/plaintiff;

Michael C. Moore, for the respondent/de­fendant.

This application was heard on August 15, 2001, at Halifax, N.S., in Chambers before Michael MacDonald, A.C.J.S.C., of the Nova Scotia Supreme Court, whose following oral judgment of August 15, 2001, was released in written form on December 5, 2001.