Lava Systems Inc. (Bankrupt) v. Clarica Life Insurance Co., [2001] O.T.C. 629 (SupCt)

• Judge: Cameron, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: June 12, 2001
• Jurisdiction: Ontario
• Citations: [2001] O.T.C. 629 (SupCt)

Lava Systems Inc. v. Clarica Life, [2001] O.T.C. 629 (SupCt)

MLB headnote and full text

Temp. Cite: [2001] O.T.C. TBEd. AU.061

Richter & Partners Inc. in its capacity as court-appointed receiver and manager of Lava Systems Inc. (applicant) v. Clarica Life Insurance Co. (respondent)

(Court File No. 01-CL-4120)

Indexed As: Lava Systems Inc. (Bankrupt) v. Clarica Life Insurance Co.

Court of Ontario

Superior Court of Justice

Commercial List

Cameron, J.

August 21, 2001.

Summary:

This headnote contains no summary.

Bankruptcy - Topic 431

Property of bankrupt - Particular property - Property leased by bankrupt - See paragraphs 1 to 53.

Bankruptcy - Topic 3653

Creditors - General - Priorities - Rent - See paragraphs 1 to 53.

Banks and Banking - Topic 4521

Letters of credit - Payment by bank - General - See paragraphs 1 to 53.

Cases Noticed:

Mussens Ltd., Re, [1943] O.W.N. 459, refd to. [para. 26].

885676 Ontario Ltd. v. Frasment Holdings Ltd. (1993), 17 C.B.R.(3d) 64 (Ont. Gen. Div.), refd to. [para. 27].

Cummer-Yonge Investments Ltd. v. Fagor, [1965] 2 O.R. 152 (H.C.), refd to. [para. 30].

Titan Warehouse Club Inc. (Trustee) v. Glenview Corp. (1988), 67 C.B.R.(N.S.) 204 (Ont. H.C.), refd to. [para. 31].

Titan Warehouse Club Inc. (Trustee) v. Glenview Corp. (1988), 67 C.B.R.(N.S.) 204 (Ont. H.C.), affd. (1989), 75 C.B.R.(N.S.) 206 (Ont. C.A.), refd to. [para. 35].

Peat Marwick Thorne Inc. v. Natco Trading Corp. (1995), 22 O.R.(3d) 727 (Gen. Div.), refd to. [para. 43].

Vrablik, Re (1993), 17 C.B.R.(3d) 152 (Ont. Gen. Div. Bktcy.), refd to. [para. 43].

Bank of Nova Scotia v. Angelica- Whitewear Ltd. and Angelica Corp., [1987] 1 S.C.R. 59; 73 N.R. 158; 36 D.L.R.(4th) 161, refd to. [para. 46].

Westpac Banking Corp. v. Duke Group Ltd. (1994), 20 O.R.(3d) 515 (Gen. Div. Bktcy.), refd to. [para. 46].

McNeill Electronics Ltd. v. American Sensors Electronics Inc. (1998), 58 O.T.C. 305; 39 O.R.(3d) 32 (Gen. Div.), refd to. [para. 46].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 136(1) [para. 24].

Commercial Tenancies Act, R.S.O. 1990, c. L-7, sect. 38, sect. 39(1) [para. 25].

Authors and Works Noticed:

Houlden, L.W., Bankruptcy of the Landlord or Tenant: The Lease in Modern Business (1965), pp. 183, 184 [para. 26].

Counsel:

Michael MacNaughton, for the applicant;

Sharon Addison, for the respondent.

This matter was heard on June 12, 2001, by Cameron, J., of the Ontario Superior Court, who delivered the following decision on August 21, 2001.

Please note: The following judgment has not been edited.