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Judgment Debtor Examinations

Posted on October 8, 2015 | Posted in Five Liners

Kristina Zakhary Professional Corp v. Age-less Dermal Therapy Inc. 2015 SCJ

Director was to be examined in a judgment debtor examination as a representative of the corporate debtor. Before the examination, the creditor commenced another action against corporations and the director personally alleging a fraudulent conveyance. The director refused to attend at the judgment debtor examination; the creditor moved for an order requiring her to do so; the Master refused to grant the order stating that it would be unfair to allow the director to be examined twice.

The creditor appealed to a judge of the Superior Court of Justice, who allowed the appeal. He indicated that the creditor had a right to the judgment debtor examination; further, as long as the questions were proper for a judgment debtor examination, it was irrelevant if the questions also related to issues or property being dealt with in the new action.

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