Dallas/North Group Inc. (Bankrupt) et al., Re, (2001) 148 O.A.C. 288 (CA)
Judge | Labrosse, Abella and MacPherson, JJ.A. |
Court | Court of Appeal (Ontario) |
Case Date | July 03, 2001 |
Jurisdiction | Ontario |
Citations | (2001), 148 O.A.C. 288 (CA) |
Dallas/North Group (Bankrupt), Re (2001), 148 O.A.C. 288 (CA)
MLB headnote and full text
Temp. Cite: [2001] O.A.C. TBEd. JL.017
In The Matter Of A Petition in Bankruptcy against Dallas/North Group Inc.
In The Matter Of a Petition in Bankruptcy against Ted Pangia
(C32504; C32501)
Indexed As: Dallas/North Group Inc. (Bankrupt) et al., Re
Ontario Court of Appeal
Labrosse, Abella and MacPherson, JJ.A.
July 5, 2001.
Summary:
Dallas/North Group Inc. (D/NG) and Pangia were petitioned into bankruptcy on the basis of a promissory note made by them. It was alleged that Pangia and D/NG ceased to meet their liabilities generally as they became due. After extensive review the trial judge concluded that the petitioning creditors failed to establish either the debt alleged to be owing or the alleged acts of bankruptcy. The trial judge also concluded that the petitions were brought for a collateral purpose, namely to remove Pangia as a officer and director of a third-party company. Moreover, there had been a concentrated effort orchestrated by Mazza and Axton (non-parties to the bankruptcy proceedings) of bullying, harassment and intimidation against Pangia. The petitions were dismissed and costs were awarded against Mazza and Axton. Mazza and Axton appealed the costs award as against them.
The Ontario Court of Appeal dismissed the appeal.
Bankruptcy - Topic 6971
Practice - Legal costs - General - [See Practice - Topic 7765 ].
Practice - Topic 7765
Costs - Special orders - Costs against nonparty - Dallas/North Group Inc. (D/NG) and Pangia were petitioned into bankruptcy on the basis of a promissory note made by them - After extensive review the trial judge concluded that the petitioning creditors failed to establish either the debt alleged to be owing or the alleged acts of bankruptcy - The trial judge also concluded that the petitions were brought for a collateral purpose, namely to remove Pangia as a officer and director of a third-party company - Moreover, there had been a concentrated effort orchestrated by Mazza and Axton (non-parties to the bankruptcy proceedings) of bullying, harassment and intimidation against Pangia - The petitions were dismissed and costs were awarded against Mazza and Axton - Mazza and Axton appealed the costs award as against them - The Ontario Court of Appeal dismissed the appeal - This was an appropriate case to have costs awarded against a nonparty.
Cases Noticed:
Rockwell Developments Ltd. v. Newtonbrook Plaza Ltd., [1972] 3 O.R. 199; 27 D.L.R.(3d) 651 (C.A.), refd to. [para. 12].
Oasis Hotel Ltd. v. Zurich Insurance Co. (1981), 124 D.L.R.(3d) 455 (B.C.C.A.), refd to. [para. 12].
Sturmer v. Beaverton (Town) (1912), 2 D.L.R. 501 (Ont. Div. Ct.), refd to. [para. 13].
Television Real Estate Ltd. v. Rogers Cable T.V. Ltd. (1997), 99 O.A.C. 226; 34 O.R.(3d) 291 (C.A.), refd to. [para. 13].
XLO Investments Ltd. v. Hurontario Management Services et al. (1999), 118 O.A.C. 258 (C.A.), refd to. [para. 13].
Counsel:
William V. Sasso, for the appellant, Nigel Axton;
Howard W. Reininger, for the appellant, Paul Mazza;
Douglas Langley, for the respondents, Dallas/North Group Inc. and Ted Pangia.
This appeal was heard on July 3, 2001, before Labrosse, Abella and MacPherson, JJ.A., of the Ontario Court of Appeal. On July 5, 2001, Labrosse, J.A., delivered the following judgment for the Court of Appeal.
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...and Insolvency Act, R.S.C. 1985, c. B-3, s. 43, Rules of Civil Procedure, Rules 21, 21.01 & 61.65, Dallas/North Group Inc. (Re) (2001), 148 O.A.C. 288 (C.A.), La Scala Bakery Ltd., Re (1984), 54 C.B.R. (N.S.) 194 (Ont. S.C.), Issasi v. Rosenzweig, 2011 ONCA 112, Kudrocova v. Kronberger, 202......
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...of straw” test as a separate inquiry into whether non-party costs were appropriate. [50] In Dallas/North Group Inc. (Bankrupt), Re, (2001), 148 O.A.C. 288 (C.A.), this court affirmed the decision of a bankruptcy judge to order non-party costs. A company called Ecology petitioned Ted Pangia ......
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...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. Jeff Lee, for Deloitte & Touche Inc.; James Sanderson, Q.C., for the Madraga Estate. This ......
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1318847 Ontario Limited v. Laval Tool & Mould Ltd., 2017 ONCA 184
...of straw” test as a separate inquiry into whether non-party costs were appropriate. [50] In Dallas/North Group Inc. (Bankrupt), Re, (2001), 148 O.A.C. 288 (C.A.), this court affirmed the decision of a bankruptcy judge to order non-party costs. A company called Ecology petitioned Ted Pangia ......
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Canadian Imperial Bank of Commerce v. 620357 Saskatchewan Ltd., 2007 SKQB 16
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Olympia & York Developments Ltd. (Bankrupt) v. Olympia & York Realty Corp. et al., [2001] O.T.C. 646 (SC)
...(Ont. Gen. Div.), affd. (1991), 3 B.L.R.(2d) 113 (Ont. Div. Ct.), refd to. [para. 31]. Dallas/North Group Inc. (Bankrupt) et al., Re (2001), 148 O.A.C. 288 (C.A.), refd to. [para. Stocznia Gdanska S.A. v. Latreefers Inc., [2000] E.W.J. No. 469 (C.A.), refd to. [para. 43]. Sturmer v. Beavert......
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...75. Counsel added that the degree of deference is even higher in abusive bankruptcy proceedings, citing Dallas/North Group Inc. (Re) (2001), 148 O.A.C. 288, at para. There are special policy considerations to take into account when dealing with abuse of process in bankruptcy court because b......
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...and Insolvency Act, R.S.C. 1985, c. B-3, s. 43, Rules of Civil Procedure, Rules 21, 21.01 & 61.65, Dallas/North Group Inc. (Re) (2001), 148 O.A.C. 288 (C.A.), La Scala Bakery Ltd., Re (1984), 54 C.B.R. (N.S.) 194 (Ont. S.C.), Issasi v. Rosenzweig, 2011 ONCA 112, Kudrocova v. Kronberger, 202......
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