Bridging Income Fund LP v. 3886727 Canada Inc., 2020 ONSC 602
Read full decision. Summary prepared by Alan Macek:
The Applicant’s motion for a declaration that all intellectual property used by the Debtor Respondent, in operating its business is the property of the Debtor and subject to the Applicant’s security and the receivership proceeding. In the alternative, a declaration that the transfer of certain Trademarks by the Debtor to 9022619 Canada Inc. is void as against the Applicant and the Receiver as a fraudulent conveyance under the Fraudulent Conveyances Act. ... I find that the Applicant has met its burden and proven that the Trademarks are the property of the Debtor. ... Badges of fraud exist in this case. 902 and the Debtor have the same directing mind, the transfer was completed for nominal consideration, the Debtor continued to use the Trademarks and remains their registered owner as per the CIPO registry, and the Debtor assigned the Trademarks without informing RBC, Horizon, or the Applicant. ... Given all of the above, and if I am wrong with respect to the ownership of the Trademarks, the assignment of the Trademarks was a conveyance of property intended to defeat the Debtor’s creditors and is declared void as against the Applicant.