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:
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.
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.
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.
