Pasnak et al. v. Chura et al., 2003 BCSC 782

• Judge: Truscott, J.
• Court: Supreme Court of British Columbia (Canada)
• Case Date: July 02, 2003
• Jurisdiction: British Columbia
• Citations: 2003 BCSC 782;[2003] B.C.T.C. 782 (SC)

Pasnak v. Chura, [2003] B.C.T.C. 782 (SC)

MLB headnote and full text

Temp. Cite: [2003] B.C.T.C. TBEd. AU.001

Allen Gregory Pasnak and Double J. Investments Ltd. (plaintiffs) v. Norman Francis Chura, Chura Holdings Ltd., Summit Motors Ltd., Summit Leasing Ltd., Fleetwood Motors Ltd. and Summit Investments Ltd. (defendants)

(A982385; 2003 BCSC 782)

Indexed As: Pasnak et al. v. Chura et al.

British Columbia Supreme Court

Vancouver

Truscott, J.

July 2, 2003.

Summary:

This headnote contains no summary.

Company Law - Topic 2164

Shareholders - Shareholders' rights - Derivative actions - See paragraphs 41 to 79 and 88 to 92.

Company Law - Topic 2170

Shareholders - Shareholders' rights - To rectify oppressive or unfairly prejudicial act - See paragraphs 41 to 79.

Company Law - Topic 2170.1

Shareholders - Shareholders' rights - Oppressive acts - Remedies - See paragraphs 25 to 40 and 80 to 87.

Company Law - Topic 4199

Directors - Liability of directors - Cause of action by one director against another director - See paragraphs 93 to 100.

Company Law - Topic 4266

Directors - Duties - General principles - Breach of fiduciary duty - What constitutes - See paragraphs 101 to 109.

Company Law - Topic 5764

Sale of shares - Valuation - Adjustments - See paragraphs 1 to 18 and 119 to 192.

Company Law - Topic 7034

Fundamental changes and shareholders' rights - Rights of equal shareholders - Deadlock - Court ordered sale of shares - See paragraphs 1 to 40.

Company Law - Topic 9781

Actions against corporations and directors - Action for oppressive conduct - When available (incl. time for) - See paragraphs 41 to 79.

Partnership - Topic 10

General - Partnership - What constitutes - See paragraphs 110 to 116.

Cases Noticed:

Palmieri v. AC Paving Co. et al. (1999), 16 B.C.T.C. 7 (S.C.), refd to. [para. 29].

Buckley et al. v. British Columbia Teachers' Federation (1992), 12 B.C.A.C. 165; 23 W.A.C. 165; 65 B.C.L.R.(2d) 156 (C.A.), refd to. [para. 30].

S.G. & S. Investments (1972) Ltd. v. Golden Boy Foods Inc. et al. (1991), 1 B.C.A.C. 303; 1 W.A.C. 303; 56 D.L.R.(2d) 273 (C.A.), consd. [para. 35].

Foss v. Harbottle (1843), 2 Hare 461; 67 E.R. 189, refd to. [para. 50].

Diligenti v. RMWD Operations Kelowna Ltd. (1976), 1 B.C.L.R. 36 (S.C.), consd. [para. 57].

National Building Maintenance Ltd. and Lee v. Dove, [1972] 5 W.W.R. 410 (B.C.C.A.), refd to. [para. 57].

Ludlow v. McMillan, [1995] B.C.J. No. 683 (S.C.), consd. [para. 59].

Chan v. GMS Datalink International Corp., [1996] B.C.J. No. 2015 (S.C.), refd to. [para. 60].

Redekop v. Robco Construction Ltd. (1978), 7 B.C.L.R. 268 (S.C.), refd to. [para. 61].

Furry Creek Timber Corp. v. Laad Ventures Ltd. (1992), 75 B.C.L.R.(2d) 246 (S.C.), consd. [para. 62].

Rogers v. Bank of Montreal (1985), 64 B.C.L.R. 63 (S.C.), affd. [1987] 2 W.W.R. 364 (B.C.C.A.), folld. [para. 65].

Brown v. Menzies Bay Timber Co., [1917] 2 W.W.R. 658 (B.C.C.A.), consd. [para. 66].

Prudential Assurance Co. v. Newman Industries Ltd. and others, [1982] 1 All E.R. 354 (C.A.), consd. [para. 67].

Greene v. Victor Talking Mach. Co. (1928), 24 F.2d 378 (C.A., 2nd Cir.), consd. [para. 68].

Ferguson v. Wallbridge et al., [1935] 1 W.W.R. 673 (P.C.), refd to. [para. 70].

Bakal v. Petursson, [1953] 4 D.L.R. 449 (S.C.C.), refd to. [para. 70].

D & H Holdings Ltd. v. Trinity Placentia Mall Ltd. and Reid (1984), 45 Nfld. & P.E.I.R. 172; 132 A.P.R. 172 (Nfld. T.D.), refd to. [para. 70].

Birch v. Sullivan, [1957] 1 W.L.R. 1247; [1958] 1 All E.R. 56, refd to. [para. 70].

Goldex Mines Ltd. v. Revill et al. (1974), 7 O.R.(2d) 216; 54 D.L.R.(3d) 672 (Ont. C.A.), consd. [para. 71].

Starcom International Optics Corp., [1994] B.C.J. No. 548 (S.C.), consd. [para. 75].

Goldstream Resources Ltd., Re (1986), 2 B.C.L.R.(2d) 244 (S.C.), refd to. [para. 75].

Daniels v. Daniels, [1978] 2 All E.R. 89 (Ch. D.), consd. [para. 88].

Gorner v. Marbil Enterprises Ltd. et al. (1985), 55 Nfld. & P.E.I.R. 343; 162 A.P.R. 343 (Nfld. T.D.), refd to. [para. 91].

Burland v. Earle, [1902] A.C. 83 (P.C.), refd to. [para. 91].

Beamish v. Solnick Estate, [1980] O.J. No. 87 (S.C.), refd to. [para. 93].

Coleman v. Myers, [1977] 2 N.Z.L.R. 297 (C.A.), consd. [para. 101].

Dusik v. Newton, [1985] 62 B.C.L.R. 1 (C.A.), consd. [para. 101].

Breslaw Holdings Ltd. et al. v. Tuer Enterprises Ltd. et al. (1991), 77 Man.R.(2d) 137 (Q.B.), revd. (1992), 81 Man.R.(2d) 106; 30 W.A.C. 106 (C.A.), consd. [para. 112].

Steward v. Donnelly, [2001] B.C.T.C. Uned. 355 (S.C.), consd. [para. 115].

Fleetwood Motors Ltd. v. Chura et al., [2001] B.C.T.C. 662 (S.C.), refd to. [para. 152].

McKinley v. BC Tel et al., [2001] 2 S.C.R. 161; 271 N.R. 16; 153 B.C.A.C. 161; 251 W.A.C. 161, refd to. [para. 185].

Discovery Enterprises Inc. v. Ebco Industries Ltd. et al., [2002] B.C.T.C. 1236 (S.C.), refd to. [para. 197].

Statutes Noticed:

Company Act, R.S.B.C. 1996, c. 62, sect. 200(1) [para. 42]; sect. 200(2) [para. 25]; sect. 201 [para. 46]; sect. 272 [para. 32].

Authors and Works Noticed:

MacIntosh, Jeffrey G., The Oppression Remedy: Personal or Derivative (1991), 70 Can. Bar Rev. 29, generally [para. 74].

Counsel:

J.D. Shields, for the plaintiffs;

H. Wiebach and G. Crickmore, for the defendants.

This case was heard on October 28-31 and November 1-8, 2002, before Truscott, J., of the British Columbia Supreme Court, who delivered the following decision on July 2, 2003.

Please note: The following judgment has not been edited.