Background:
RGN Management Limited Partnership (RGN) provided office space and services to 7th Light Education Group Inc. (7th Light) under a contract. When 7th Light failed to pay, RGN sued for $2,444,375.55. RGN obtained a garnishing order attaching $795,539.52 from Langara College, which owed money to 7th Light. 7th Light argued part of the funds were not a debt due and sought their release.

Legal Issues:

• Whether the $741,758.47 "Program Advance" from Langara was an attachable debt under s. 3 of the Court Order Enforcement Act (COEA).

• Whether the trial judge erred in finding a Quistclose trust without submissions from the parties.

• Whether 7th Light had standing to challenge the garnishment order.

Court’s Decision:
The Court of Appeal dismissed RGN’s appeal. It agreed the trial judge erred in raising a Quistclose trust without argument but upheld the ruling on other grounds. The Court found that the Program Advance was not a debt due under COEA, making it not subject to garnishment.

Final Award:
The court ruled in favor of 7th Light Education Group Inc., ordering the release of $741,758.47, which had been previously garnished. No additional costs were awarded.