Trade Secret and Breach of Confidence Monetary Claim Stayed by Bankruptcy
The purpose of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 (BIA) is to relieve an honest and unfortunate debtor of their debts and liabilities. A discharge from bankruptcy releases the insolvent debtor from pre-bankruptcy debts or liabilities provable in bankruptcy subject to certain exceptions.[1]
An exception to this rule is s. 178(1)(e) relating to “any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation”.[2] Where the exception applies then such debt or liability is not released, and continues to remain enforceable against the debtor after bankruptcy.[3]
A successful claim . . . [more]
