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ARTICLE · 27 NOVEMBER 2023

The Charter, Contempt, And Unreasonable Delay In A Bankruptcy Context

Borden Ladner Gervais LLP
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In Lymer v Jonsson, 2023 ABKB 565, the Alberta Court of King's Bench, in the context of bankruptcy proceedings, rendered a judgment concerning the applicability of section 11(b) (Section 11(b))...

CanadaInsolvency/Bankruptcy/Re-Structuring

In Lymer v Jonsson, 2023 ABKB 565, the Alberta Court of King's Bench, in the context of bankruptcy proceedings, rendered a judgment concerning the applicability of section 11(b) (Section 11(b)) of the Canadian Charter of Rights and Freedoms (the Charter) and Rule 4.31 of the Alberta Rules of Court (Rule 4.31) within the framework of a contempt of court application. The Court ruled that an individual bankrupt, facing contempt of court proceedings for failing to produce records of financial affairs, is precluded from seeking a stay under Section 11(b) and Rule 4.31. The Court held that, in cases where the individual bankrupt has contributed to the delay, he or she cannot seek redress by pleading unreasonable delay.

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