DISCHARGE OF BANKRUPT - Conditional discharge - Upon total or partial repayment

Law360 Canada ( September 2, 2025, 2:12 PM EDT) -- Appeal by Pemberton from chambers judge’s order. Pemberton signed an agreement with Intact Insurance (Intact) to facilitate the acquisition of bonds to a company established by him (Dowland). After Pemberton’s resignation, Intact advised him that claims had been made on bonds issued for Dowland and he was jointly and severally liable for payments made by Intact to bond claimants. Pemberton did not pay the money owed to Intact who eventually sued. The chambers judge made an order upholding the decision of a Registrar in Bankruptcy granting Mr. Pemberton a conditional discharge from bankruptcy with two conditions: payment of the sum of $2,650,000 to his estate, and three calendar years expiring from the date of such payment. On appeal, Mr. Pemberton argued that in upholding the decision of the Registrar, the chambers judge failed to properly balance governing bankruptcy principles, misconstrued evidence of a $7,000,000 settlement and an alleged trust and imposed conditions which were too onerous and severe....
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