Plaintiff
Defendant
Introduction and Background:
The case involved a dispute between David Melanson and Stephen Melanson, concerning an oral contract. David hired SDA Contracting Ltd. (owned by Stephen and his wife, Lisa Melanson) to build on Stephen’s property, agreeing to cover costs. David later stopped payments after contributing $200,000, leading Stephen and Lisa to complete the project.
Legal Issues:
David sued Stephen and Lisa for breach of contract, and they counterclaimed. Additionally, Stephen, acting on behalf of SDA, sued David for the unpaid balance under the contract. During trial, David declared bankruptcy, invoking the Bankruptcy and Insolvency Act (BIA), staying the proceedings. The main issues were whether the judgments survived bankruptcy and whether stays could be lifted.
Court Findings:
Justice Wolfe found David owed $105,997.43 to SDA for breach of contract. In a counterclaim, the court awarded Stephen and Lisa $53,790.60 for wrongful removal of tools and equipment. The court concluded that the debts arose from David's fiduciary breach and wrongful acts, making them non-dischargeable under the BIA.
Total Awards and Costs:
The total awards in favor of Stephen, Lisa, and SDA were $159,788.03, plus regular costs. The court allowed Stephen to enforce the judgment on behalf of SDA and ruled that the judgment debts and costs survived David’s bankruptcy.
Court
Supreme Court of British ColumbiaCase Number
80775Practice Area
Bankruptcy & insolvencyAmount
$ 159,788Winner
DefendantTrial Start Date
Download documents