Background: The case involved the bankruptcy of TA Hotel Management Limited Partnership (TA Hotel Management), which operated the Trump International Hotel and Tower Vancouver. The partnership assigned itself into bankruptcy on August 27, 2020, and Grant Thornton Limited was appointed as the trustee in bankruptcy.
Legal Arguments/Issues
- Mismanagement and Fee Inflation: Maxfine International Limited and TA Properties (Canada) Ltd. alleged that Grant Thornton mismanaged the bankruptcy to increase its fees, causing losses exceeding $3.8 million. They sought leave to sue Grant Thornton for breach of contract, negligence, trespass, and breach of fiduciary duties under section 215 of the Bankruptcy and Insolvency Act.
- Trustee Immunity: Grant Thornton contended the claim was frivolous, vexatious, and lacked a factual basis. They argued section 215 provided them immunity unless the court granted leave.
- Admissibility of Evidence: The court found the report by Don A. MacLean, an insolvency advisor, inadmissible due to bias and advocacy.
- Breach of Fiduciary Duty and Negligence: Maxfine and TA Properties claimed Grant Thornton's actions, such as the improper removal of fixtures and handling of the bankruptcy estate, breached its fiduciary duty and were negligent.
- Held: The court allowed Maxfine and TA Properties to bring a claim for negligent damage to property and consequential damages but dismissed other claims, including breach of statutory duty and breach of contract. The court did not specify an amount of costs or damages awarded.
Costs/Damages Awarded: The document did not specify a final award of costs or damages in favor of the successful party.
