Respondent
Petitioner
Other
Facts: Forjay Management Ltd. obtained a judgment against 625536 B.C. Ltd. for costs in a foreclosure proceeding. 625's only asset, a commercial property, was transferred to 1052387 B.C. Ltd. after Forjay notified 625 of its intention to seek costs, raising suspicions of fraudulent conveyance to avoid debt repayment.
Issue: Whether the transactions between 625536 B.C. Ltd. and 1052387 B.C. Ltd. were intended to hinder, delay, or defraud Forjay Management Ltd. from recovering its costs, and if so, should these transactions be voided under the Fraudulent Conveyance Act and Fraudulent Preference Act.
Court’s Ruling: The court found prima facie evidence of fraudulent intent by 625 to transfer assets to 105 to avoid Forjay’s claim. The transactions were scrutinized for badges of fraud, including timing, relationship between parties, and the financial state of 625, leading to a conclusion that they were likely intended to defeat Forjay's claim.
Costs/Damages Awarded: Forjay was awarded special costs against 625, fixed at $187,326.49, and an additional $83,162.27 for Reliable Mortgages Investment Corp. (RMIC), totalling $270,488.76.
Court
Supreme Court of British ColumbiaCase Number
H170498Practice Area
Civil litigationAmount
$ 270,489Winner
PetitionerTrial Start Date
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