21 Jan 2025
Bridgepoint Financial Services Limited Partnership I v. Steinberg
Background
- Bridgepoint Financial Services Limited Partnership I ("BridgePoint") loaned funds to Rudolf Steinberg in 2013, secured against "Settlement Funds."
- Steinberg’s tort claim was dismissed in 2022, but he received a $1.25 million accident benefits (AB) settlement.
- BridgePoint claims its loan agreement covers both settlements, while Steinberg and others argue it applies only to the tort claim.
Motion by Pamela Adderley
- Pamela Adderley, a judgment creditor of Steinberg, sought standing in the case.
- She argued that BridgePoint’s new application expanded the issues, affecting her ability to recover from the AB settlement.
Key Legal Issues
- Entitlement vs. Priority: The court found the application only determines if BridgePoint can claim the AB settlement, not how funds will be distributed.
- Joinder under Rule 5.03: The court ruled Adderley was not a necessary party for this phase.
- Standing under the PPSA, s. 67: Adderley was granted limited standing due to her interest in the settlement.
Decision
- Adderley can file a 10-page factum and make 20-minute submissions but cannot file evidence or cross-examine witnesses.
- BridgePoint must pay $1,500 in costs to Adderley.
Mixed outcome:
- BridgePoint won on the joinder issue, as Adderley was not deemed a necessary party under Rule 5.03.
- Adderley won limited standing under PPSA s. 67, allowing her restricted participation in the application.
- Because Adderley prevailed on the standing issue, she was awarded costs.