Case information

None.

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Bankruptcy and insolvency – Civil procedure – Motion to dismiss appeal – Whether Superior Court erred in finding that Applicants were unable to meet their liabilities as they became due and had therefore committed acts of bankruptcy – Whether Court of Appeal erred in dismissing appeal on basis that it had no chance of success – Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 42(1)(j) – Code of Civil Procedure, R.S.Q., c. C-25, arts. 4.2 and 501(4.1).

The Applicant 9072-0855 Québec inc. operated a retail business known as Forges Marin. The principal shareholder was the Applicant André Bélanger. In 2008, Mr. Bélanger founded Gestion Loka inc., which took charge of a building construction project to enable Forges Marin to expand. Financing was put in place. From December 2008 on, the Caisse followed the Applicants’ file closely and met with them frequently regarding their financial situation. On February 12, 2009, the Caisse had an interim receiver appointed for Forges Marin’s property. The business was permanently closed on that date. On March 12, 2009, the Caisse served three applications for bankruptcy orders against the Applicants. It alleged that the Applicants had committed acts of bankruptcy within the meaning of s. 42(1)(j) of the Bankruptcy and Insolvency Act, as they had ceased to meet their liabilities generally as they became due.

The Superior Court granted the applications, declared the Applicants to be bankrupt and appointed the Respondent trustee as trustee in the three bankruptcies. The Court of Appeal, relying on arts. 4.2 and 501(4.1) C.C.P., granted a motion to dismiss the Applicants’ appeal and dismissed that appeal on the basis that it had no chance of success.