Lloyd (Bankrupt), Re, (2007) 221 Man.R.(2d) 9 (QB Reg.)

• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: August 30, 2007
• Jurisdiction: Manitoba
• Citations: (2007), 221 Man.R.(2d) 9 (QB Reg.);2007 MBQB 222

Lloyd (Bankrupt), Re (2007), 221 Man.R.(2d) 9 (QB Reg.)

MLB headnote and full text

Temp. Cite: [2007] Man.R.(2d) TBEd. OC.017

In The Matter Of The Bankruptcy Of: Ronald Glen Lloyd

(BK 05-01-00193; 2007 MBQB 222)

Indexed As: Lloyd (Bankrupt), Re

Manitoba Court of Queen's Bench

In Bankruptcy

Winnipeg Centre

Sharp, Registrar

August 30, 2007.

Summary:

MNP moved under s. 41(11) of the Bankruptcy and Insolvency Act to be appointed trustee of a conditionally discharged bankrupt.

A Registrar of the Manitoba Court of Queen's Bench, In Bankruptcy, allowed the motion.

Bankruptcy - Topic 440.3

Property of bankrupt - Particular property - After-acquired property - A Registrar of the Manitoba Court of Queen's Bench, In Bankruptcy, held that a bankrupt's payment under a conditional discharge did not constitute "after-acquired property", pursuant to s. 67(1)(c) of the Bankruptcy and Insolvency Act, but rather emanated from the bankrupt's personal earnings - See paragraphs 27 and 28.

Bankruptcy - Topic 2641

Trustees - Appointment - General - [See Bankruptcy - Topic 9216 ].

Bankruptcy - Topic 9216

Discharge of trustee - General principles - Incidental duties - LCT, the bankrupt's trustee, obtained its discharge and did not help the bankrupt with his application for a discharge - Another trustee, MNP, did - The bankrupt was discharged conditionally upon making certain periodic payments - MNP moved under s. 41(11) of the Bankruptcy and Insolvency Act to be appointed trustee - A Registrar of the Manitoba Court of Queen's Bench, In Bankruptcy, allowed the motion - The collection and distribution of the bankrupt's payments did not constitute "incidental duties", which would have allowed LCT to remain as trustee according to s. 41(10) - Indeed, it was arguable that the bankrupt's payments constituted "assets that have not been realized or distributed", as contemplated by s. 41(11), thereby allowing for the appointment of a new trustee - See paragraphs 1 to 29.

Bankruptcy - Topic 9217

Discharge of trustee - General principles - Appointment of trustee by court to complete administration - [See Bankruptcy - Topic 9216 ].

Words and Phrases

After-acquired property - A Registrar of the Manitoba Court of Queen's Bench, In Bankruptcy, discussed the meaning of the expression "after-acquired property" found in s. 67(1)(c) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 - See paragraphs 19 to 29.

Words and Phrases

Assets that have not been realized or distributed - A Registrar of the Manitoba Court of Queen's Bench, In Bankruptcy, discussed the meaning of the expression "assets that have not been realized or distributed" found in s. 41(11) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 - See paragraphs 19 to 29.

Words and Phrases

Such duties as may be incidental to the full administration of the estate - A Registrar of the Manitoba Court of Queen's Bench, In Bankruptcy, discussed the meaning of the expression "such duties as may be incidental to the full administration of the estate" found in s. 41(10) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 - See paragraphs 19 to 29.

Cases Noticed:

Martin, Re (1990), 5 C.B.R.(3d) 270 (Ont. Gen. Div.), refd to. [para. 14].

Philip's Manufacturing Ltd., Re (1992), 16 C.B.R.(3d) 127 (B.C.S.C.), refd to. [para. 15].

Sindaco (Bankrupt), Re, [2003] B.C.T.C. 1396; 2003 BCSC 1396 (Master), consd. [para. 20].

Dore (Bankrupt), Re (2001), 214 Sask.R. 314 (Q.B. Bktcy. Registrar), consd. [para. 27].

Marzetti v. Marzetti (Bankrupt), [1994] 2 S.C.R. 765; 169 N.R. 161; 155 A.R. 340; 73 W.A.C. 340, refd to. [para. 28].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 41(10) [para. 17]; sect. 41(11) [para. 12]; sect. 67(1)(c) [para. 28].

Counsel:

L.C. Taylor, Trustee, for L.C. Taylor & Co.;

K. Zealand, Trustee, for Meyers Norris Penny Ltd.

This motion was heard by Sharp, Registrar, of the Manitoba Court of Queen's Bench, In Bankruptcy, Winnipeg Centre, who delivered the following decision on August 30, 2007.