Canadian Imperial Bank of Commerce v. 620357 Saskatchewan Ltd., 2007 SKQB 16

• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: January 12, 2007
• Jurisdiction: Saskatchewan
• Citations: 2007 SKQB 16;(2007), 294 Sask.R. 54 (QB Reg.)

CIBC v. 620357 Sask. (2007), 294 Sask.R. 54 (QB Reg.)

MLB headnote and full text

Temp. Cite: [2007] Sask.R. TBEd. FE.041

In The Matter Of the Taxation of Accounts of Deloitte & Touche Inc.

Canadian Imperial Bank of Commerce v. 620357 Saskatchewan Ltd.

(2005 Q.B.G. No. 607; 2007 SKQB 16)

Indexed As: Canadian Imperial Bank of Commerce v. 620357 Saskatchewan Ltd.

Saskatchewan Court of Queen's Bench

In Bankruptcy and Insolvency

Judicial Centre of Saskatoon

Herauf, Registrar in Bankruptcy

January 12, 2007.

Summary:

A creditor had a receiver appointed for a company. The estate of the sole director and shareholder of the company sought taxation of the receiver's accounts.

A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, in a decision reported at [2006] Sask.R. Uned. 165, ordered that the receiver's accounts be reduced by $10,000.00 to $124,225.34. Legal fees were approved in the amount of $29,542.80. The parties made submissions respecting costs of the taxation. The receiver sought solicitor and client costs from the estate or increased party and party costs.

A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, ordered the estate to pay the receiver fixed costs of $2,500.

Practice - Topic 7032.2

Costs - Party and party costs - Entitlement to - Bankruptcy proceedings - A creditor had a receiver appointed for a company - The estate of the sole director and shareholder of the company sought taxation of the receiver's accounts - On taxation, the receiver's accounts were reduced by $10,000.00 to $124,225.34 - Legal fees were approved in the amount of $29,542.80 - The receiver sought solicitor and client costs from the estate on the basis that it engaged in conduct deserving of rebuke, including providing the receiver with 34 pages of questions and disputed claims, conducting extensive cross-examination of the receiver and failing to provide evidence to substantiate the allegations of unreasonable accounts - Alternatively, the receiver sought increased party and party costs - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, held that solicitor and client costs were not appropriate - The receiver had misunderstood a prior order and failed to seek court approval to increase its fees once they passed $40,000 - Had the order been properly interpreted, there may have been no need for the contested taxation of the receiver's accounts - The registrar held that the thrust of the estate's argument was "somewhat unfocused" and some of it's allegations were simply not justified - But for the reduction of $10,000, the receiver effectively justified its accounts and was put to a great deal of work to do so - The registrar ordered the estate to pay the receiver fixed costs of $2,500.

Practice - Topic 7454

Costs - Solicitor and client costs - Entitlement to - Improper, irresponsible or unconscionable conduct - [See Practice - Topic 7032.2 ].

Practice - Topic 7470.2

Costs - Solicitor and client costs - Entitlement to - Bankruptcy proceedings - [See Practice - Topic 7032.2 ].

Cases Noticed:

Young v. Young et al., [1993] 4 S.C.R. 3; 160 N.R. 1; 34 B.C.A.C. 161; 56 W.A.C. 161; [1993] 8 W.W.R. 513, refd to. [para. 9].

Siemens et al. v. Bawolin et al., [2002] 11 W.W.R. 246; 219 Sask.R. 282; 272 W.A.C. 282 (C.A.), refd to. [para. 9].

Dallas/North Group (Bankrupt) et al., Re (2001), 148 O.A.C. 288; 27 C.B.R.(4th) 40 (C.A.), refd to. [para. 14].

Counsel:

Jeff Lee, for Deloitte & Touche Inc.;

James Sanderson, Q.C., for the Madraga Estate.

This matter was heard before Herauf, Registrar, of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, Judicial Centre of Saskatoon, who released the following judgment on January 12, 2007.