Peterson v. Peterson, (1995) 178 A.R. 70 (CA)

• Judge: Kerans, Stratton and O'Leary, JJ.A.
• Court: Court of Appeal (Alberta)
• Case Date: November 24, 1995
• Citations: (1995), 178 A.R. 70 (CA)

Peterson v. Peterson (1995), 178 A.R. 70 (CA);

    110 W.A.C. 70

MLB headnote and full text

Anne Patricia Margaret Peterson (otherwise known as Anne Patricia Margaret O'Byrne-Karaca) (applicant/appellant) v. Daniel Simmons Peterson (respondent/respondent)

(Appeal No. 14988)

Indexed As: Peterson v. Peterson

Alberta Court of Appeal

Kerans, Stratton and

O'Leary, JJ.A.

November 24, 1995.

Summary:

A husband and wife divorced in 1983. The wife released all support and property claims in exchange for $10,000 plus four annual $10,500 payments. The divorce decree in­corporated the settlement agreement terms. The husband went bankrupt in 1983. The annual payments remain unpaid. The wife remarried and took no steps to collect the payments until 1993 (after second marriage failed), when she applied under rule 331 to renew the "judgment". The husband opposed the application on the ground that judgment was statute barred by the limitation period and, in any event, there was no order for "support" that survived the bankruptcy (Bankruptcy Act, s. 178(1)(c)).

The Alberta Court of Queen's Bench held that the settlement was a division of marital property and not an order for maintenance and support. The balance of the monies owing did not survive the bankruptcy. The wife appealed.

The Alberta Court of Appeal dismissed the appeal.

(Editor's Note: Stratton, J.A., having resigned on October 30, 1995, did not par­ticipate in the judgment)

Bankruptcy - Topic 8986

Discharge of debtor - Liabilities not released by discharge - Maintenance or affiliation order - Section 178(1)(c) of the Bankruptcy Act provided that a support order survived bankruptcy - A husband and wife divorced in 1983 - The wife released all support and property claims in exchange for $10,000 plus four annual $10,500 payments - The husband went bankrupt with monies still owing - The divorce decree provided that the minutes of settlement were approved and incorpor­ated into the decree nisi to the extent that the provisions therein would normally be matters corollary to divorce - Neither the agreement nor extrinsic evidence permitted an apportionment of the monies between the release of the property and support claims - The Alberta Court of Appeal affirmed that the wife failed to prove that there was an "order for support" under s. 178(1)(c) - Accordingly, the remaining monies owing did not survive the bank­ruptcy discharge.

Cases Noticed:

Van Norman v. Van Norman (1991), 30 R.F.L.(3d) 140 (B.C.S.C.), affd. (1993), 22 B.C.A.C. 203; 38 W.A.C. 203; 44 R.F.L.(3d) 406 (C.A.), refd to. [para. 12].

Craig v. Bassett (1988), 70 C.B.R.(N.S.) 83 (N.S.T.D.), affd. 87 N.S.R.(2d) 216; 222 A.P.R. 216; 17 R.F.L.(3d) 225 (C.A.), refd to. [para. 12].

Haisman v. Haisman (1994), 157 A.R. 47; 77 W.A.C. 47; 116 D.L.R.(4th) 671 (C.A.), refd to. [para. 12].

Kozack v. Richter, [1974] S.C.R. 832, refd to. [para. 12].

Miller, Re (1980), 111 D.L.R.(3d) 571 (Alta. Q.B.), refd to. [para. 13].

Jerrard v. Peacock (1985), 61 A.R. 161; 37 Alta. L.R.(2d) 197 (Q.B.), refd to. [para. 18].

Berthold v. MacLellan, [1994] A.J. No. 275 (C.A.), refd to. [para. 19].

Williams (F.) Logging Co. et al. v. Roethel et al. (1995), 58 B.C.A.C. 84; 96 W.A.C. 84; 32 C.B.R.(3d) 99 (C.A.), refd to. [para. 19].

Barnacle v. Barnacle, [1993] O.J. No. 1273 (Ont. Gen. Div.), refd to. [para. 19].

Moore v. Moore (1988), 72 C.B.R.(N.S.) 50; 17 R.F.L.(3d) 344; 67 O.R.(2d) 29 (H.C.), refd to. [para. 20].

Bremner v. Bremner (Bankrupt) (1989), 74 Sask.R. 110; 73 C.B.R.(N.S.) 91 (Q.B.), refd to. [para. 22].

Huntingdon v. Huntingdon (1990), 101 N.S.R.(2d) 271; 275 A.P.R. 271 (T.D.), refd to. [para. 22].

Lawpla Ltd. v. Bonney (1984), 40 R.F.L.(2d) 105 (Ont. Co. Ct.), refd to. [para. 22].

Smith v. Thorne, Ernest & Whinney Inc. (1989), 78 C.B.R.(N.S.) 256 (B.C.S.C.), refd to. [para. 22].

Ng, Re, [1994] B.C.J. No. 3043 (S.C.), refd to. [para. 22].

Schmidt v. Schmidt (1991), 95 Sask.R. 318; 36 R.F.L.(3d) 390 (Q.B.), refd to. [para. 22].

Taylor, Re (1985), 48 R.F.L.(2d) 214 (B.C.S.C.), refd to. [para. 22].

Miller v. Miller, [1981] 4 A.U.D. 1293 (C.A.), refd to. [para. 28].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 178(1)(c) [para. 8].

Counsel:

P.L. Daunais and E.J. Sidnell, for the appellant;

D.R. Vimy, for the respondent.

This appeal was heard before Kerans, Stratton and O'Leary, JJ.A., of the Alberta Court of Appeal.

On November 24, 1995, Kerans, J.A., delivered the following judgment for the Court of Appeal.