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Digest Of The Week | MNP Ltd v. Desrochers

2018 CarswellMan 420, 2018 MBCA 97
Bankruptcy and insolvency --- Practice and procedure in courts — Appeals — To Court of Appeal — Availability — Miscellaneous cases
Res judicata — Creditor was one of several creditors who had obtained judgment against bankrupt — Creditor successfully applied for order of bankruptcy against bankrupt — Bankrupt's position that he was farmer for purposes of Bankruptcy and Insolvency Act was rejected in first instance and on appeal — Bankrupt unsuccessfully brought application to declare his bankruptcy proceedings nullity due to failure to comply with requirements in Farm Debt Mediation Act (FDM Act) — Bankrupt appealed — Appeal dismissed — Bankrupt could not raise issue of applicability of FDM Act at this stage — If bankrupt had wished applicability of FDM Act to be considered, he should have raised it in initial opposition to bankruptcy order and subsequent appeal — Bankrupt had been represented by counsel who had raised provisions of The Family Farm Protection Act for him — Doctrine of issue estoppel clearly prevented applicability of FDM Act from being raised at this time — In addition, if bankrupt could challenge validity of entire bankruptcy proceedings at this late stage, it would amount to collateral attack on validity of initial bankruptcy order, which was properly made and upheld upon appeal — This would be contrary to concept of finality ensconced in doctrines of res judicata and abuse of process.
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