• Claims:
  • RBC sued for repayment of corporate debts guaranteed by the Woodrows.
  • Woodrows sought indemnification from Ross E. Greb and others.

Key Facts

• Background:
  • Robert B. Woodrow and Ross E. Greb were directors and shareholders of Greb Tele-Data Inc.
  • Anne Woodrow also guaranteed the company’s debts.
  • Ross E. Greb filed a Consumer Proposal in May 2013 due to business failure.
  • RBC filed a lawsuit in May 2014.
  • Woodrows obtained a default judgment against third parties in February 2016.

Legal Issues

• Default Judgment:
  • Included claims of fraud and misappropriation against Ross E. Greb.
• Bankruptcy and Insolvency Act:
  • Woodrows sought to declare the default judgment survives Ross E. Greb's discharge under section 178(1)(d).

Court's Analysis and Decision

• Fraud and Fiduciary Duty:
  • Section 178(1)(d) requires proof of debt from fraud while acting in a fiduciary capacity.
  • Insufficient evidence to show Ross E. Greb owed a fiduciary duty to Robert Woodrow.
  • Judgments should be read in entirety; “Third Parties” includes Ross E. Greb.

Conclusion

• The motion to declare the default judgment surviving the consumer proposal was dismissed.
• Woodrows must vacate the Writ of Seizure and Sale against Ross E. Greb.

Next Steps

• Written submissions on costs to be filed by July 22, 2024.