Factual Background:
Tavi Eggertson, a shareholder, officer, and director of Tudor Sales Ltd., claimed to be a secured creditor in the bankruptcy of Tudor. He sought payment of $2,781,359 from Tudor’s estate, including advances made in 2005–06 and 2011–12. Cascade Steel Rolling Mills Inc., an unsecured creditor with a claim of $1,367,746.25, challenged Eggertson's claim.

Legal Issues:
The appeal involved the interpretation of section 135(5) of the Bankruptcy and Insolvency Act (BIA), which allows courts to reduce or expunge claims. Eggertson argued that the chambers judge lacked jurisdiction because the trustee had not allowed the claim. He also contended that the ruling was procedurally unfair and that his advances were mischaracterized.

Court’s Decision:
The Court of Appeal dismissed Eggertson’s appeal, holding that the chambers judge had jurisdiction under section 135(5) of the BIA, even without trustee approval. The court found no procedural unfairness and upheld the judge’s characterization of the 2005–06 advances as equity and the 2011–12 advances as improper transactions unrelated to Tudor’s business.

Costs and Award:
The appeal was dismissed, with the court awarding costs to Cascade Steel Rolling Mills Inc. The document did not specify the total amount of costs awarded.