Key Points:
- RBC’s Claim: RBC sought a bankruptcy order against the respondents, alleging unpaid debts over $1,000 and acts of bankruptcy.
- Respondents’ Defense: They admitted to owing RBC but denied committing any acts of bankruptcy. Mr. von Gramatzki argued lack of jurisdiction, as he had moved to Texas, and cited RBC’s potential recovery from the federal government under the CSBFA.
Key Findings:
- Indebtedness: RBC had loan agreements with FASI and guarantees from both individual respondents, which were defaulted on, leading to judgments against them.
- Acts of Bankruptcy:
- Fraudulent Preference: Mr. von Gramatzki’s transfer of shares to his wife after receiving RBC's demand was deemed fraudulent.
- Inability to Meet Liabilities: Both respondents were found insolvent based on financial statements.
- Jurisdiction: The court confirmed jurisdiction, as the respondents had resided or conducted business in Canada during relevant periods.
- CSBFA Argument: The court rejected the argument that RBC should rely on government reimbursement rather than pursue bankruptcy, ruling that legal proceedings are a valid step.
Conclusion:
The court granted RBC’s application for bankruptcy orders against the respondents.
Total Monetary Awards/Costs/Damages:
- Judgment Awards (from previous decision):
- $343,692.21 against FASI 2 Ltd.
- $98,650.02 against Alexander von Gramatzki.
- $98,650.02 against Christopher Hanne.
- Costs Award:
- Additional costs of $40,000 awarded to RBC by the court for legal fees.
Total Monetary Award:
- $581,642.25 in total (including judgments and costs).
