Little (Nautilus North Strength and Fitness Centre) v. Bramcan Investments Limited
John Little o/a Nautilus North Strength and Fitness Centre
Law Firm / Organization
Davidson Cahill Morrison LLP
Bramcan Investments Limited
Law Firm / Organization
John L. O'Kane Professional Corporation
Lawyer(s)

John L. O'Kane

Catherine Spencer
Law Firm / Organization
John L. O'Kane Professional Corporation
Lawyer(s)

John L. O'Kane

Geoffrey Crawford
Law Firm / Organization
John L. O'Kane Professional Corporation
Lawyer(s)

John L. O'Kane

Background:

  • John Little (Appellant) operated a fitness business and filed a lawsuit against his former landlord, Bramcan Investments Limited, and its officers.
  • He claimed damages for the disposal of his business assets, initially valued at $250,000, later amended to $430,000.
  • At the time of filing the lawsuit (2020), he was an undischarged bankrupt, and his assets were under the control of his bankruptcy trustee (BDO Dunwoody Canada Limited).
  • The defendants discovered his bankruptcy during cross-examination in 2023 and moved to dismiss the case.

Key Legal Issues:

  1. Standing to Sue – The motion judge ruled that only the trustee in bankruptcy had the right to commence the action, rendering Little’s lawsuit a nullity.
  2. Exemption for Tools of the Trade – Little argued the equipment was personal property exempt under the Bankruptcy and Insolvency Act (BIA). However, Ontario law limits this exemption to $11,300, far below his claim.
  3. Mental Distress Damages – Little claimed damages for mental distress, but the court found this claim was linked to the property dispute and could not stand on its own.

Court’s Decision:

  • The Ontario Court of Appeal dismissed the appeal, upholding the motion judge’s ruling that the claim was a nullity.
  • Costs of $7,500 were awarded to the respondents.
Court of Appeal for Ontario
COA-24-CV-0336
Bankruptcy & insolvency
$ 7,500
Respondent