Professional Conduct Decision
What is a professional conduct decision?
An investigation into a Licensed Insolvency Trustees (LIT)'s professional conduct is initiated when there is information to suggest that the LIT has not properly performed the duties of a trustee or there has been improper administration of an estate or lack of compliance with the Bankruptcy and Insolvency Act (BIA).
In some cases, the findings are sufficiently serious to support a recommendation for sanctions against the LIT's licence (cancel or suspend a LIT's licence (subsection 13.2(5) of the BIA) or impose conditions or limitations (subsection 14.01(1) of the BIA)).
The professional conduct decision is deemed to be a decision of a federal board, commission or tribunal and may be judicially reviewed by the federal court.
Canada
Bankruptcy District
of the province of Quebec
In the Matter of the Disciplinary File of Trustees Jacques Roy (Quebec) —
Complainant: Sylvie Laperrière, Senior Analyst
Respondent: Jacques Roy, Trustee
Order pursuant to sections 14.01 and 14.02 of the Bankruptcy and Insolvency Act
Whereas the undersigned made a decision dated , concerning the trustee's liability, followed by a second decision dated , with regard to the sanction;
Whereas these decisions were the subject of applications by the trustee (docket T-360-05) and by the senior analyst (docket T-402-05) for judicial review by the Federal Court with regard to, respectively, the four defaults sustained and the seven defaults dismissed by the undersigned;
Whereas the trustee's four defaults sustained by the undersigned in the decision of , were upheld by the Federal Court (docket T-360-05);
Whereas the Federal Court nonetheless, in docket T-360-05, set aside the one-week suspension imposed on the trustee and referred the matter back to the undersigned for a new decision on the sanction in accordance with section 14.01 of the Bankruptcy and Insolvency Act (the Act);
Whereas the senior analyst's application for judicial review in docket T-402-05 was allowed with respect to certain defaults and dismissed with respect to others;
Whereas an appeal and a cross-appeal were filed with the Federal Court of Appeal against this decision (docket A-579-05);
Whereas in a judgment dated , the Federal Court of Appeal reversed the undersigned's conclusions regarding the interpretation of Rule 45 and of Section 30 of the Act, with the result that six defaults initially dismissed should be the subject of a new hearing;
Whereas the file was again referred to the undersigned for a decision as to whether the evidence justified the conclusion that the trustee was guilty of the alleged defaults;
Whereas the trustee intends to contest his liability with respect to these six defaults;
Whereas the continuation of the hearing is scheduled for ;
Whereas the parties have entered into discussions in order to come to a negotiated solution in this matter and to put an end to the costs incurred and to be incurred;
Whereas the parties have come to an agreement whose particulars are contained in the order that I am confirming herewith, since I am of the view that it is in the interest of the parties and in the interest of justice to give it effect in order to close this file without further costs or delays;
I, the undersigned, in my capacity as delegate of the Superintendent of Bankruptcy, declare closed the disciplinary procedure begun with respect to trustee Jacques Roy, and, in accordance with the powers vested in me under subsection 14.01(2) of the Act, endorse the agreement arrived at and order as follows:
- that the licence of trustee Jacques Roy be suspended for a period of 10 days beginning on , during which period he may not act as a trustee, nor accept any mandate under the Act, neither personally, nor in the name of a corporate trustee;
- that unless he conforms to this order, the trustee shall be deemed to not have complied with one of the conditions of his licence within the meaning of paragraph 13.2(5)(b) of the Act.
Signed at Montréal, this
Honourable Lawrence Poitras, Q.C.
In my capacity as delegate of the Superintendent of Bankruptcy
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.