B LAW403 Lecture Notes - Lecture 2: Stelco
15 Mar 2016
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Badge of fraud = conduct that strongly indicates an intent to defraud the other party to a transaction or to delay or hinder litigation. Intent to defraud can be presumed if the transferor is insolvent at time of transaction. A corporation does not survive bankruptcy because they cannot be discharged from it. Lehndorff general partners case = read the case paragraphs 5-8. Once a company is discharged from the ccaa it should be insolvent and therefore, be able to pay its creditors and continue forward in business. Union wants to rescind the order allowing the ccaa proceeding for stelco because, among other orders. In the plaintiff view, stelco was not an insolvent company (they had returned during the ccaa process to being a profitable company).
