Legal Blog

Fraudulent Conveyance and Limitations

Jasmur Holdings Ltd. v. Callaghan 2019 BCSC

A creditor arising out of a failed joint venture obtained a judgment against the debtor in 2016. The court found that the debtor had transferred his only real asset, a half interest in his house, to his wife in 2005. The creditor brought a fraudulent conveyance action. The judge had no problem in finding that the transfer was made to defeat or delay the debtor’s future creditors. The debtor admitted that he transferred the house to protect it against future creditors just before entering into a “speculative and risky business venture.” The judge also dismissed limitations defence; he held that the limitation period normally starts upon the transfer of the land, but that it was not reasonable to expect a plaintiff to commence such an action until after the creditor obtained a judgment on the merits of its claim.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.