In Ontario, all registered real estate salespeople and brokers are required to participate in the Real Estate Council of Ontario’s insurance program (see the Trust in Real Estate Services Act and regulations). This program includes “consumer deposit insurance,” which protects individuals who lose deposits due to real estate broker fraud, among other things. It is […]
Category Archives: Receiverships
Court Considers Defence of Improvident Sale to Liability Under Personal Guarantee
In Calicom Solutions Inc. v. Sunil, the Superior Court of Justice considered whether to grant summary judgment in favour of creditors that had sued defendants for liability arising under personal guarantees. One of the arguments raised by the defendants in opposing the motion was that a receiver appointed by court order had undertaken an improvident […]
Applying to Court For the Appointment of a Receiver
Occasionally, when creditors are concerned about the value of their security or their ability to recover from a debtor, they may seek the assistance of a receiver. Generally speaking, a receiver is a third party appointed to take control of and manage a business or property, liquidate assets and/or settle debts. Receivers can be privately […]
Recent Case Considers Lifting Stay of Proceedings Against Court-Appointed Receiver Manager
In the recent case of Intercity Realty Inc. v. PricewaterhouseCoopers Inc., the Ontario Superior Court of Justice considered a motion to lift a stay of proceedings that the court had previously ordered in the context of Pricewaterhouse Coopers Inc. (“PwC”) ‘s appointment as a receiver-manager. The case offers a useful summary of applicable legal principles. […]
Receiver, Investors at Odds Over Best Method to Recover Investment Losses
Bridging Finance is an Ontario private-debt fund that touted itself as a seemingly risk-proof investment option but has been facing intense scrutiny for the past couple of years by the Ontario Securities Commission over concerns of investment fraud. Now, investors are facing losses of over $1 billion dollars as an appointed receiver is struggling to […]
Injunctions & Receiverships as Tools in Civil Fraud Cases
In the course of litigation, a defendant may attempt to sell, hide, transfer or otherwise make it appear that all assets have been depleted, leaving nothing for the plaintiff. To preserve or freeze the defendant’s assets, a plaintiff may seek a Mareva injunction or request that a receiver be appointed to manage the defendant’s financial […]