Robinson, Little & Co. (Bankrupt) v. Manitoba (Minister of Labour), (1986) 41 Man.R.(2d) 54 (QBBK)

• Judge: Ferg, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: April 29, 1986
• Jurisdiction: Manitoba
• Citations: (1986), 41 Man.R.(2d) 54 (QBBK)

Robinson, Little & Co. v. Man. (1986), 41 Man.R.(2d) 54 (QBBK)

MLB headnote and full text

Clarkson Gordon Inc. (the successor in name to the Clarkson Company, Limited), Trustee of the Estate of Robinson, Little & Company, Limited, a Bankrupt (applicant) v. Her Majesty the Queen in right of the Province of Manitoba, as represented by the Minister of Labour (respondent)

(Nos. 1/85, 2/85, 3/85)

Indexed As: Robinson, Little & Co. (Bankrupt) v. Manitoba (Minister of Labour)

Manitoba Court of Queen's Bench

In Bankruptcy

Ferg, J.

April 29, 1986.

Summary:

A trustee in bankruptcy applied for directions on the payment of wages to employees of the bankrupt company. The Minister of Labour argued that pursuant to s. 3(4) of the Manitoba Payment of Wages Act, a deemed trust existed to secure wages which circumvented the distribution scheme in s. 107(1) of the federal Bankruptcy Act.

The Manitoba Court of Queen's Bench, In Bankruptcy, held that the federal legislation was paramount and that the distribution scheme in s. 107(1) of the federal Bankruptcy Act prevailed.

Bankruptcy - Topic 3648

Creditors - Priorities - Wages - General - The Minister of Labour alleged that employees of a bankrupt company were entitled to wages pursuant to the Manitoba Payment of Wages Act, which deemed a trust to exist securing wages - The Manitoba Court of Queen's Bench, In Bankruptcy, held that payment of employees wages had priority to the extent of the distribution scheme in s. 107(1) of the federal Bankruptcy Act.

Constitutional Law - Topic 3611

Paramountcy of federal statutes - Overlapping legislation - General - The Manitoba Court of Queen's Bench, In Bankruptcy, held that in the case of bankruptcy, wages of employees had priority to the extent of the distribution scheme in s. 107(1) of the federal Bankruptcy Act; and that the deemed trust under the Manitoba Payment of Wages Act was not operative to circumvent the federal scheme.

Constitutional Law - Topic 6265

Federal jurisdiction - Bankruptcy and insolvency - The Manitoba Court of Queen's Bench, In Bankruptcy, held that in the case of bankruptcy, wages of employees had priority to the extent of the distribution scheme in s. 107(1) of the federal Bankruptcy Act; and that the deemed trust under the Manitoba Payment of Wages Act was not operative to circumvent the federal scheme.

Cases Noticed:

Multiple Access Ltd. v. McCutcheon et al., [1982] 2 S.C.R. 161; 44 N.R. 181; 138 D.L.R.(3d) 1 (S.C.C.), refd to. [para. 11].

John M.M. Group Ltd. et al. v. Royal Bank of Canada (1962), 34 D.L.R.(2d) 556 (S.C.C.), refd to. [para. 11].

Re Dairy Maid Chocolate Ltd. (1972), 17 C.B.R. 270 (Ont. S.C.), refd to. [para. 11].

Re Alduco Mechanical Contractors Ltd. (1982), 134 D.L.R.(3d) 104 (Ont. S.C.), refd to. [para. 11].

Dauphin Plains Credit Union Ltd. v. Xyloid Industries Ltd., [1980] 1 S.C.R. 1182; 31 N.R. 301; 3 Man.R.(2d) 283; 108 D.L.R.(3d) 257; 33 C.B.R. 107 (S.C.C.), refd to. [para. 11].

Re 52181 Manitoba Ltd. Trading as Auto Re-Nu (1983), 22 Man.R.(2d) 32 (Man. C.A.), refd to. [para. 11].

Re Phoenix Paper Products Ltd. (1983), 48 C.B.R. 113 (Ont. C.A.), consd. [paras. 11, 13, 15].

Todashichuk v. Marchenski Lumber, [1985] W.W.D. 72; 40 Sask.R. 198 (Sask. C.A.), refd to. [para. 11].

R. in Right of Saskatchewan v. Coopers and Lybrand Ltd. (1982), 45 C.B.R. 172 (Sask.Q.B.), refd to. [para. 11].

Attorney General of Canada v. Thorne Riddell Inc. (1982), 44 C.B.R. 315 (Alta. Q.B.), refd to. [para. 11].

Director of Employment Standards v. James Estate (Bankrupt) (1985), 35 Man.R.(2d) 103 (Man. Q.B.), refd to. [para. 11].

National Bank of Canada et al. v. Director of Employment Standards (1983), 3 P.P.S.A.C. 119, refd to. [para. 11].

Deloitte Haskins and Sells Ltd. v. Workers' Compensation Board et al., [1985] 1 S.C.R. 785; 60 N.R. 81; 63 A.R. 321; 55 C.B.R. 241 (S.C.C.), consd. [paras. 11, 12, 16].

Bourgault's Estate v. Deputy Minister of Revenue of Quebec, [1979] 1 S.C.R. 35; 30 N.R. 24, consd. [paras. 11, 19].

Re Read; Sous-Ministre Du Revenue du Quebec v. Frances (1983), 49 C.B.R. 21 (Que.C.A.), refd to. [para. 11].

Attorney General of Canada v. Samson Belair Ltd., [1985] 3 W.W.R. 651 (B.C.C.A.), refd to. [para. 11].

R. in Right of B.C. v. Henfrey & Co. Ltd. (1984), 52 C.B.R. 8 (B.C.C.A.), refd to. [para. 11].

Re Racknagel (1982), 42 C.B.R. 135 (B.C.S.C.), refd to. [para. 11].

Coopers & Lybrand v. R. in Right of Canada et al. sub nom Re 1653 Investments Ltd. (1981), 39 C.B.R. 247 (B.C.S.C.), refd to. [para. 11].

Re Black Forest Restaurant Ltd. (1981), 37 C.B.R. 176; 47 N.S.R.(2d) 454; 90 A.P.R. 454 (N.S.S.C.T.D. in Bankruptcy), refd to. [para. 11].

Director of Labour Standards of Nova Scotia et al. v. Trustee in Bankruptcy (1981), 38 C.B.R. 253 (N.S.C.A.), refd to. [para. 11].

Re K.R.A. Restaurants Ltd. et al. (1977), 74 D.L.R.(3d) 272, refd to. [para. 11].

Re Deslauriers Construction Products Ltd. (1970), 13 D.L.R.(3d) 551 (Ont. C.A.), refd to. [para. 11].

Re Kraemar (1982), 43 C.B.R. 232 (Ont. S.C.), refd to. [para. 11].

In re Gingras Automobile Ltee.; Les Produits de Caoutchouc Marquis v. Trottier, [1962] S.C.R. 676, refd to. [para. 11].

Royal Bank of Canada v. Midway Video Industries Ltd.; Royal Bank of Canada v. Fratkin (1978), 28 C.B.R.(N.S.) 297 (Man. Q.B.), refd to. [para. 11].

In re Silver Brothers Limited; Attorney General for Quebec v. Attorney General for Canada, [1932] 1 W.W.R. 764 (J.C.P.C.), refd to. [para. 11].

Re Board of Industrial Relations and Canadian Imperial Bank of Commerce (1980), 116 D.L.R.(3d) 71 (B.C.S.C.), refd to. [para. 11].

Workers' Compensation Board v. Kinross Mortgage Corporation et al. (1981), 41 C.B.R. 1 (B.C.C.A.), refd to. [para. 11].

Statutes Noticed:

Bankruptcy Act, R.S.C. 1970, c. B-3, sect. 47(a) [paras. 2, 3, 6, 18]; sect. 107(1) [paras. 2, 5, 8, 15, 16, 20].

Payment of Wages Act, S.M. 1975, c. 21; C.C.S.M. c. P-15, sect. 3(4) [paras. 2, 3, 7, 15].

Authors and Works Noticed:

Feldthusen, Bruce, Statutory Liens: Secured Claim or Preferred Claim, 37 Can. Bar Rev. 163.

Counsel:

D.G. Ward, for the applicant;

V.J. Matthews Lemieux, for the respondent.

This application was heard before Ferg, J., of the Manitoba Court of Queen's Bench, In Bankruptcy, who delivered the following judgment on April 29, 1986: