Chartrand et al. v. De La Ronde et al., (1997) 115 Man.R.(2d) 73 (CA)

• Judge: Scott, C.J.M., Huband and Philp, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: February 03, 1997
• Jurisdiction: Manitoba
• Citations: (1997), 115 Man.R.(2d) 73 (CA)

Chartrand v. De La Ronde (1997), 115 Man.R.(2d) 73 (CA);

    139 W.A.C. 73

MLB headnote and full text

Application pursuant to the Corporations Act, R.S.M. 1987, c. C-225, The Court of Queen's Bench Act, S.M. 1988-89, c. C-280, and the Court of Queen's Bench Rules

David Chartrand, Maurice Saint-Cyr, Cecil Asmus, Marcie Johnson, Muriel Parker, Elbert Chartrand, Rosemarie McPherson, Ron Erickson, Rita Cullen, Norman Fleury, Bernice Potoski and Oliver Monkman (applicants/appellants) v. Billyjo De La Ronde, Robert Gaudry, Denise Thomas, Marielee Nault, Roberta Carriere, Lionel Allard, Sandra De La Ronde, Fortunat Guiboche, Walter Menard and Ivonna Gudmundson (respondents)

(Suit No. AI 96-30-02778)

Indexed As: Chartrand et al. v. De La Ronde et al.

Manitoba Court of Appeal

Scott, C.J.M., Huband and Philp, JJ.A.

February 3, 1997.

Summary:

Manitoba Métis Federation Inc. (MMF Inc.) was formed in 1967 to represent and serve the interests of the Manitoba Métis people. The amended bylaws of MMF Inc. provided that a simple majority would make up a quorum. Any amendments to the bylaws could only be made by a resolution of 60% of the members in attendance. In 1994 the Manitoba Métis Federation (MMF), an unincorporated association, was formed and a constitution was adopted. The consti­tution provided that a quorum consisted of the president and 12 members of the board. A Métis Judicial Tribunal (the Tribunal) was created under the constitution. The board of directors of MMF Inc. also served as the board of governors of MMF. The constitu­tion purported to prevail over the bylaws of MMF Inc. A dispute arose between the president and some of the members of the board of directors/governors. The Tribunal removed various directors from the board of MMF Inc. The directors applied for relief under s. 234 of the Corporations Act. The trial judge ordered that MMF Inc. be liqui­dated and dissolved and ordered that a receiver/manager be appointed. Neither party sought such relief. The directors appealed.

The Manitoba Court of Appeal, in a deci­sion reported 113 Man.R.(2d) 12; 131 W.A.C. 12, allowed the appeal. The court held that the receiver's costs should be paid from the assets of MMF Inc. The directors applied for a reconsideration of the court's order with respect to costs.

The Manitoba Court of Appeal dismissed the application.

Receivers - Topic 4005

Compensation - Court appointed receiver - The Métis people of Manitoba were repre­sented by a corpor­ation, Manitoba Métis Federation Inc. (MMF Inc.), and an unincor­porated asso­ciation, the Manitoba Métis Federation (MMF) - The MMF's con­stitution purported to prevail over MMF Inc.'s bylaws - The Métis Judicial Tribunal, created under the MMF constitu­tion, pur­ported to remove various directors from MMF Inc.'s board of directors - The di­rectors applied for relief under s. 234 of the Corporations Act - The trial judge ordered that MMF Inc. be dissolved and a receiver/manager be appointed - Neither party sought such relief - The Manitoba Court of Appeal set aside the order - The court held that the receiver's costs should be paid from MMF Inc.'s assets - The directors applied for a reconsideration of the costs order - The court dismissed the application.

Cases Noticed:

Wunsche v. Wunsche (1994), 70 O.A.C. 380; 18 O.R.(3d) 161 (C.A.), dist. [para. 3].

Ernst & Young Inc. et al. v. Ontario (1995), 25 O.R.(3d) 623 (Gen. Div.), refd to. [para. 5].

Oberman v. Mannahugh Hotels Ltd. et al., [1980] 5 W.W.R. 487; 4 Man.R.(2d) 312 (Q.B.), refd to. [para. 8].

Braid Builders Supply & Fuel Ltd. v. Genevieve Mortgage Corp. (1972), 17 C.B.R. 305 (Man. C.A.), refd to. [para. 8].

Counsel:

M.N. Trachtenberg, for the appellants;

C.R. MacArthur, Q.C., for the respondents;

D.J. Nelko, for Deloitte & Touche.

This application was heard by Scott, C.J.M., Huband and Philp, JJ.A., of the Manitoba Court of Appeal. Scott, C.J.M., delivered judgment for the court on February 3, 1997 and released the following written reasons on February 13, 1997.