Legal Blog

Partition and Sale

Rumanek & Co. v. Abuomar 2019 Ont SCJ

A creditor had been unable to sell a debtor’s joint interest in the matrimonial home and had obtained an order appointing a receiver for the debtor see Luu v. Abuomar. The receiver then brought an application under the Partition Act for partition and sale. Although it was practically impossible to sell the debtor’s one-half interest in the house, it would be relatively easy for the entire house to be sold, with the debtor’s share being applied to the debt. As it happened, the judge who appointed the receiver also dealt with the application. Although he was initially reticent to allow the receiver’s application, he decided that a court appointed receiver stood in the shoes of the debtor and therefore had standing to bring the application. The judge determined that the receiver had acted without vexation or oppression and came to court with clean hands. He further held that the inconvenience to the debtor’s wife was insufficient to outweigh the creditor’s right to collect her debt. Accordingly, the judge granted the application.

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