IN THE SUPREME COURT OF NOVA SCOTIA
IN BANKRUPTCY AND INSOLVENCY
Citation: Coyle (Re), 2011 NSSC 238
Date: June 20, 2011
Docket: B 31647
Registry: Halifax
District of Nova Scotia
Division No. 01 - Halifax
Court No. 31647
Estate No. 51-1034823
In the Matter of the Bankruptcy of Leslie Coyle
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LIBRARY HEADING
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Registrar: Richard W. Cregan, Q.C.
Heard: March 15, 2011
Written Decision: June 20, 2011
Summary: The Applicant received Employment Insurance benefits based on representations made by her which were found to be untrue. She was ordered by the Canada Employment Insurance Commission to pay back the benefits. This was confirmed by a Board of Referees under the Employment Insurance Act.
Meanwhile she made an assignment in bankruptcy. The Commission took the position that this debt was one that survived bankruptcy under Paragraph 178(1)(e) of the Bankruptcy and Insolvency Act.
Issue: She asks the court to rule that the debt does not survive bankruptcy because there has not been a competent judicial finding of the fraud to bring the debt under Paragraph 178(1)(e).
The issue is whether a Board of Referees has authority to make such findings of fraud.
Result: It was held that it does and its findings show that the debt is covered by Paragraph 178(1)(e), subject to an issue yet to be argued, namely how the failure of the Commission to have obtained a lifting of the stay of proceedings under Section 69.4 of the Bankruptcy and Insolvency Act before proceeding with the claim affects the validity of the proceedings before the Board.
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