In the context of a tenant’s bankruptcy, Justice Romaine of the Alberta Queens Bench recently characterized a deposit provided under a lease as a security interest, as opposed to pre-paid rent, forcing an unsecured landlord to remit the money to a trustee in bankruptcy.
A recent High Court case involving unlawful loans to directors illustrates the potential pitfalls involved in calculating limitation periods, and the circumstances in which the usual six year statutory limitation period will not apply to a recovery claim against a fiduciary.
Facts
Broadside Colours and Chemicals Ltd was a family firm supplying dyes to the textile trade. The directors were Geoffrey Button, his wife Catherine Button, and their son James Button. Only the father and son were shareholders.