Fantasy Construction Ltd. et al. (Bankrupts), Re, 2007 ABCA 335

• Judge: Watson, J.A.
• Court: Court of Appeal (Alberta)
• Case Date: September 25, 2007
• Citations: 2007 ABCA 335;(2007), 417 A.R. 255 (CA)

Fantasy Constr. Ltd. (Bankrupts), Re (2007), 417 A.R. 255 (CA);

      410 W.A.C. 255

MLB headnote and full text

Temp. Cite: [2007] A.R. TBEd. NO.044

In The Matter Of the Bankruptcy of Fantasy Construction Ltd. (respondent/respondent/applicant)

And In The Matter Of the Bankruptcy of Southbend Construction Co. (respondent/respondent/applicant) v. Office of the Superintendent of Bankruptcy (applicant/appellant/respondent)

And In The Matter Of the Bankruptcy of Cutting Edge Foods Inc. (not a party to the appeal/applicant)

(0703-0229-AC; 2007 ABCA 335)

Indexed As: Fantasy Construction Ltd. et al. (Bankrupts), Re

Alberta Court of Appeal

Watson, J.A.

November 2, 2007.

Summary:

Two trustees in bankruptcy and a secured creditor, all in unrelated matters, sought advice and directions concerning payment of the Bankruptcy and Insolvency Act levy under s. 147. Section 147 imposed levies on payments by trustees to unsecured, preferred and secured creditors payable to the Superintendent of Bankruptcy to defray the expenses of supervision. A "collateral" request by the trustees for advice and directions as to the vires of the Superintendent of Bankruptcy's Directive No. 10, entitled "Redemption of Security and Section 147 Levy of the BIA", prompted a preliminary jurisdictional challenge by the Office of the Superintendent of Bankruptcy.

The Alberta Court of Queen's Bench ruled that the jurisdiction to determine the vires and application of Directive No. 10 rested with the Bankruptcy Court. The Superintendent applied for leave to appeal.

The Alberta Court of Appeal dismissed the application for leave to appeal.

Bankruptcy - Topic 6709

Practice - General principles - Superintendent's Directives - Two trustees in bankruptcy and a secured creditor, all in unrelated matters, sought advice and directions concerning payment of the Bankruptcy and Insolvency Act levy under s. 147 - Section 147 imposed levies on payments by trustees to unsecured, preferred and secured creditors payable to the Superintendent of Bankruptcy to defray the expenses of supervision - A "collateral" request by the trustees for advice and directions as to the vires of the Superintendent of Bankruptcy's Directive No. 10, entitled "Redemption of Security and Section 147 Levy of the BIA", prompted a preliminary jurisdictional challenge by the Office of the Superintendent of Bankruptcy - The Alberta Court of Queen's Bench (Topolniski, J.), ruled that the jurisdiction to determine the vires and application of Directive No. 10 rested with the Bankruptcy Court (as opposed to the Federal Court) - The Superintendent applied for leave to appeal - The Alberta Court of Appeal, per Watson, J.A., reviewed the test for leave and refused to grant leave where none of the applicable factors supported a grant of leave - Watson, J.A., was not persuaded that Topolniski, J., erred in her conclusion and stated further, that he was, even more importantly, persuaded that it was not appropriate to grant leave at this stage of these bankruptcy cases to evaluate Topolniski, J.'s, conclusion (i.e., the strength of the Superintendent's argument was not such that it justified a grant of leave and an appeal at this phase of the matters) - See paragraphs 1 to 72.

Bankruptcy - Topic 6752

Practice - Jurisdiction - To determine the vires of Superintendent's directives - [See Bankruptcy - Topic 6709 ].

Courts - Topic 4047.1

Federal Court of Canada - Jurisdiction - Federal Court - Bankruptcy - [See Bankruptcy - Topic 6709 ].

Cases Noticed:

West Edmonton Mall Property Inc. v. Duncan & Craig - see Devcor Investment Corp. (Bankrupt), Re.

Devcor Investment Corp. (Bankrupt), Re (2001), 277 A.R. 93; 242 W.A.C. 93; 2001 ABCA 40, refd to. [para. 2].

R. v. Passey (D.M.) (1997), 209 A.R. 191; 160 W.A.C. 191; 121 C.C.C.(3d) 444 (C.A.), refd to. [para. 11].

Flock v. Flock, [2007] A.R. Uned. 340; 2007 ABCA 287, refd to. [para. 11].

Alberta v. Nilsson (1999), 250 A.R. 85; 213 W.A.C. 85; 1999 ABCA 340, refd to. [para. 11].

Blue Range Resources Corp., Re - see CIBC World Markets Inc. v. Blue Range Resources Corp.

CIBC World Markets Inc. v. Blue Range Resources Corp. (2001), 281 A.R. 172; 248 W.A.C. 172; 2001 ABCA 86, refd to. [para. 12].

Blue Range Resources Corp., Re (2000), 250 A.R. 239; 213 W.A.C. 239; 2000 ABCA 16, refd to. [para. 13].

Alternative Fuel Systems Inc. v. Edo (Canada) Ltd. - see Edo (Canada) Ltd. (Bankrupt), Re.

Edo (Canada) Ltd. (Bankrupt), Re (1997), 206 A.R. 295; 156 W.A.C. 295 (C.A.), refd to. [para. 14].

SVCM Capital Ltd. v. Fiber Connections Inc. (2005), 198 O.A.C. 27; 10 C.B.R.(5th) 201 (C.A.), refd to. [para. 14].

R. v. Brooks (J.) et al. (2004), 221 N.S.R.(2d) 168; 697 A.P.R. 168; 2004 NSCA 21, refd to. [para. 21].

Thamotharem v. Canada (Minister of Citizenship and Immigration) (2007), 366 N.R. 301; 2007 FCA 198, refd to. [para. 22].

Saskatchewan Wheat Pool et al. v. Canada (Attorney General) (1993), 67 F.T.R. 98; 107 D.L.R.(4th) 190 (T.D.), refd to. [para. 25].

Oberlander v. Canada (Attorney General) (2003), 238 F.T.R. 35 (F.C.), refd to. [para. 25].

Grenier v. Canada (2005), 344 N.R. 102; 262 D.L.R.(4th) 337 (F.C.A.), refd to. [para. 26].

R. v. Eagle Child; R. v. Lefthand, 2007 ABCA 206, refd to. [para. 26].

Authorson v. Canada (Attorney General), [2003] 2 S.C.R. 40; 306 N.R. 335; 175 O.A.C. 363; 2003 SCC 39, refd to. [para. 26].

R. v. Greenwood (1992), 56 O.A.C. 321; 10 C.R.(4th) 392 (Ont. C.A.), leave to appeal refused [1992] 1 S.C.R. viii; 140 N.R. 237, refd to. [para. 28].

Lévy (Sam) & Associés Inc. v. Lafontaine - see National Fruit 2000 Inc. (Bankrupt), Re.

National Fruit 2000 Inc. (Bankrupt), Re (2001), 34 C.B.R.(4th) 259 (Que. C.A.), leave to appeal refused (2002), 303 N.R. 392 (S.C.C.), refd to. [para. 29].

Marchand Syndics Inc. v. Canada (Procureur général) (2004), 4 C.B.R.(5th) 180 (Que. S.C.), refd to. [para. 29].

Abderrazik (Bankrupt), Re (2002), 37 C.B.R.(4th) 1 (Que. S.C.), refd to. [para. 29].

Real Estate Council of Alberta v. Henderson et al. (2007), 417 A.R. 39; 410 W.A.C. 39; 2007 ABCA 303, refd to. [para. 38].

Doucet-Boudreau et al. v. Nova Scotia (Minister of Education) et al., [2003] 3 S.C.R. 3; 312 N.R. 1; 218 N.S.R.(2d) 311; 687 A.P.R. 311; 2003 SCC 62, refd to. [para. 39].

Abernethey (J.W.) Management & Consulting Ltd. et al. v. 705589 Alberta Ltd. et al. (2005), 367 A.R. 38; 346 W.A.C. 38; 2005 ABCA 103, refd to. [para. 40].

Charkaoui, Re (2004), 328 N.R. 201; 247 D.L.R.(4th) 405 (F.C.A.), refd to. [para. 40].

Charkaoui, Re, [2007] 1 S.C.R. 350; 358 N.R. 1; 2007 SCC 9, refd to. [para. 40].

May et al. v. Ferndale Institution et al., [2005] 3 S.C.R. 809; 343 N.R. 69; 220 B.C.A.C. 1; 362 W.A.C. 1; 2005 SCC 82, refd to. [para. 42].

Ellis v. Silber (1872), L.R. 8 Ch. App. 83, refd to. [para. 43].

Miida Electronics Inc. v. Mitsui O.S.K. Lines Ltd. and ITO-International Terminal Operators Ltd., [1986] 1 S.C.R. 752; 68 N.R. 241, refd to. [para. 44].

Canadian Human Rights Commission v. Canadian Liberty Net et al., [1998] 1 S.C.R. 626; 224 N.R. 241, refd to. [para. 44].

House of Commons et al. v. Vaid et al., [2005] 1 S.C.R. 667; 333 N.R. 314; 2005 SCC 30, refd to. [para. 45].

Weber v. Ontario Hydro, [1995] 2 S.C.R. 929; 183 N.R. 241; 82 O.A.C. 321, refd to. [para. 45].

St. Anne Nackawic Pulp & Paper Co. v. Canadian Paper Workers Union, Local 219, [1986] 1 S.C.R. 704; 68 N.R. 112; 73 N.B.R.(2d) 236; 184 A.P.R. 236, refd to. [para. 45].

Marchand Syndics Inc. v. Superintendent of Bankruptcy (Can.) - see Marchand Syndics Inc. et al. v. Laperrière.

Marchand Syndics Inc. et al. v. Laperrière (2006), 357 N.R. 344; 2006 FCA 368, refd to. [para. 47].

Marchand Syndics Inc. et al. v. Laperrière (2004), 272 F.T.R. 16; 2004 FC 1584, refd to. [para. 49].

Marchand Syndics Inc. v. Canada (Attorney General), [2005] J.Q. no 24053, refd to. [para. 51].

Canada (Procureur général) v. Marchand Syndics Inc., 2007 QCCA 876, refd to. [para. 51].

Holt Cargo Systems Inc. v. ABC Containerline N.V. (Bankrupt) et al., [2001] 3 S.C.R. 907; 280 N.R. 1; 2001 SCC 90, refd to. [para. 54].

Brotherhood of Maintenance of Way Employees v. Canadian Pacific Ltd., [1996] 2 S.C.R. 495; 198 N.R. 161; 78 B.C.A.C. 162; 128 W.A.C. 162, refd to. [para. 56].

Ordon et al. v. Grail, [1998] 3 S.C.R. 437; 232 N.R. 201; 115 O.A.C. 1, refd to. [para. 60].

R. v. International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, Local 771, [2005] 3 S.C.R. 425; 341 N.R. 357; 275 Sask.R. 1; 365 W.A.C. 1; 2005 SCC 70, refd to. [para. 61].

Robertson v. Edmonton Chief of Police et al. (2003), 339 A.R. 169; 312 W.A.C. 169; 2003 ABCA 279, refd to. [para. 70].

Workum v. Alberta Securities Commission et al., [2006] A.R. Uned. 875; 2006 ABCA 181, refd to. [para. 70].

Authors and Works Noticed:

Côté, Pierre-André, Interpretation of Legislation in Canada (3rd Ed. 2000), p. 360 [para. 28].

Driedger - see Sullivan, Ruth, Sullivan and Driedger on the Construction of Statutes.

Houlden, Lloyd W., and Morawetz, Carl H., Bankruptcy and Insolvency Law of Canada (Rev. 3rd Ed.), vol. 2, p. 57 [para. 10].

Sullivan, Ruth, Sullivan and Driedger on the Construction of Statutes (4th Ed. 2002), pp. 186 [para. 21]; 273, 274, 275 [para. 28].

Counsel:

G.F. Body, for the applicant, Office of the Superintendent of Bankruptcy;

M.J. McCabe, Q.C., for the Trustee in the Matter of the Bankruptcy of Fantasy Construction Ltd.;

K.A. Rowan, for the Trustee in the Matter of the Bankruptcy of Southbend Construction Company.

This application was heard by Watson, J.A., of the Alberta Court of Appeal, on September 25, 2007, who filed the following reasons for judgment at Edmonton, Alberta, on November 2, 2007.