Hughes et al. v. Graves,

• Jurisdiction: Nova Scotia
• Judge: Moir, J.
• Neutral Citation: 2001 NSSC 68
• Citation: 2001 NSSC 68,(2001), 194 N.S.R.(2d) 51 (SC),25 CBR (4th) 255,[2001] NSJ No 179 (QL),194 NSR (2d) 51,606 APR 51,194 N.S.R.(2d) 51,[2001] NS.J. No 179 (QL),606 A.P.R. 51,(2001), 194 NSR(2d) 51 (SC),194 NSR(2d) 51
• Date: 09 March 2001
• Court: Supreme Court of Nova Scotia (Canada)

Hughes v. Graves (2001), 194 N.S.R.(2d) 51 (SC);

 606 A.P.R. 51

MLB headnote and full text

Temp. Cite: [2001] N.S.R.(2d) TBEd. MY.028

Judith A. Graves (appellant) v. Donna Hughes and Rick Sutcliffe (respondents)

(S.H. No. 168826; SCCH 111089; 2001 NSSC 68)

Indexed As: Hughes et al. v. Graves

Nova Scotia Supreme Court

Moir, J.

May 15, 2001.

Summary:

Hughes and Sutcliffe sued Graves for fraudulent misrepresentation. Graves made an assignment in bankruptcy. After Graves was discharged from bankruptcy, the case was transferred to the Small Claims Court. The adjudicator determined that Graves was liable for fraudulent misrepresentation and held that the liability determination would survive bankruptcy. Graves appealed, assert­ing, inter alia, that the adjudicator lacked jurisdiction to hear the matter because it involved the survival of a claim under s. 178(1) of the Bankruptcy and Insolvency Act.

The Nova Scotia Supreme Court dismissed the appeal.

Bankruptcy - Topic 8995

Discharge of debtor - Liabilities not released by discharge - Practice - Plaintiffs sued Graves claiming fraudulent misrepre­sentation - Graves made an assignment in bankruptcy - After Graves' discharge from bankruptcy, the case was transferred to the Small Claims Court - The adjudicator determined that Graves was liable and that the liability survived bankruptcy by virtue of s. 178(1)(e) of the Bankruptcy and Insolvency Act - Graves appealed, assert­ing that the adjudicator lacked jurisdiction to make the s. 178(1)(e) determination - The Nova Scotia Supreme Court dismissed the appeal - The Bankruptcy and Insol­vency Act did not preclude ordinary civil courts (including the Small Claims Court) from deciding, after discharge of the bank­rupt and trustee, whether a liability had been extinguished by bankruptcy and, particularly, whether a liability was within s. 178(1)(e) of the Act - See paragraphs 3 to 12.

Courts - Topic 6209

Provincial courts - Nova Scotia - Small Claims Court - Jurisdiction - Adjudicator - [See Bankruptcy - Topic 8995 ].

Cases Noticed:

Hall v. New Breton Homes Ltd. (1994), 131 N.S.R.(2d) 218; 371 A.P.R. 218 (S.C.), refd to. [para. 3].

McArthur (Bankrupt), Re (2000), 185 N.S.R.(2d) 96; 575 A.P.R. 96 (S.C. Registrar), consd. [para. 5].

Sumner Co. (1984) v. Triarch Maritimes Inc. (1990), 3 C.B.R.(3d) 209 (Ont. S.C.), refd to. [para. 10].

Authors and Works Noticed:

Houlden and Morawetz, The 2001 An­notated Bankruptcy and Insolvency Act (2000), paras. F43 [para. 7]; H22(7) [para. 4]; I4(7) [para. 10]; p. 336 [para. 7].

Counsel:

Linda D. Wood, for the appellant;

Michael Maddalena, for the respondents.

Moir, J., of the Nova Scotia Supreme Court, heard this appeal at Halifax, Nova Scotia, on March 9, 2001, and delivered the following judgment on May 15, 2001.