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ARTICLE · 11 OCTOBER 2023

Attacking Fraudulent Conveyances: What Is The Time Limit?

In Bank of Montreal v. Iskenderov, 2023 ONCA 528, the Ontario Court of Appeal held that actions to set aside a conveyance under section 2 of the Fraudulent Conveyances...

CanadaCriminal Law

In Bank of Montreal v. Iskenderov, 2023 ONCA 528, the Ontario Court of Appeal held that actions to set aside a conveyance under section 2 of the Fraudulent Conveyances Act are subject to the basic two-year limitation period under the Limitations Act, 2002 – not the ten-year period prescribed by section 4 of the Real Property Limitations Act. In coming to a unanimous decision, the five-judge panel of the Court of Appeal not only overturned the decision of the motion judge, but impugned their own Court's relatively recent decision in Anisman v. Drabinsky, 2021 ONCA 120 (Anisman). This result is somewhat counter-intuitive and a trap for the unwary.

Facts

In accordance with a separation agreement, Iskenderov (the Debtor) transferred his interest in his home to his wife. Iskenderov soon thereafter defaulted on his loan to the bank and assigned himself into bankruptcy. More than two years after the transfer, the bank sought to set aside the transfer as a fraudulent

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