Every week, experts Hon. Lloyd Houlden and Geoffrey Morawetz provide readers with valuable insights into bankruptcy and insolvency law by discussing some of the leading cases in their field.

The newsletter is best used to supplement their authoritative Bankruptcy and Insolvency Law of Canada, available online in InsolvencySource and in print (a 4-volume looseleaf service).

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March 8, 2010

• In Valastiak v. Valastiak (2010), 2010 CarswellBC 307 (B.C. C.A.), the British Columbia Court of Appeal reviewed the provisions of Section 178(1)(d) of the BIA. Chief Justice Finch construed "misappropriation" in its ordinary sense to connote some element of wrongdoing. In addition, the court concluded that there are exceptional circumstances where a director of a company owes a fiduciary duty to another shareholder.

See Houlden & Morawetz, Bankruptcy and Insolvency Law of Canada:

H§63 — Debts not Released by an Order of Discharge

H§63(5) — Debts not Released by an Order of Discharge — Debt or Liability Arising Out of Fraud, Embezzlement, Misappropriation or Defalcation While Acting in a Fiduciary Capacity

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