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FINAL EXAMINATION
APRIL 2018
LAW 443
CREDITORS REMEDIES
SECTION 1
PROFESSOR EDINGER
This is an open book examination. You may bring into the examination room and use
the casebook, the statutory materials and your notes.
If you require any further information to solve the problem, state what information is
required and why you need it.
MARKS
When Dr. Drake was first married, his only income was derived from his
medical practice and the practice payments are still deposited into an
account held jointly with his wife. His bimonthly U.B.C. salary, however, is
directly deposited to an account in his name alone and in a different bank.
Despite their recent failure to make the playoffs, Dr. Drake continues to be
a Canuck fan. He has had season’s tickets for years and now leases a box
at Rogers Arena on a renewable annual basis. In recent months, the doctor
was persuaded by colleagues to acquire a one quarter interest in a race
horse, alleged to be very promising. In fact, the horse won its first race last
month. Dr. Drake was so delighted that he donated his considerable
winnings to charity. He regularly buys lottery tickets.
3. Answer questions (a), (b) and (c), set out at the end of the fact pattern.
Bill, divorced from Hillary and now married to Monica, lives on a 50 acre
farm inherited from his father in the Okanagan area of British Columbia. In
recent years, droughts and untimely frosts have caused crop damage and
Bill has been sliding into debt. During this period also, the farmhouse was
destroyed by fire and Bill has been engaged in litigation with the insurance
company. The insurance company has finally made an offer to settle and
paid monies into court. Bill has not yet accepted the offer but is about to
do so. However, anticipating that the insurance company would pay up on
the policy, Bill took a second mortgage on the farm over a year ago so he
could commence rebuilding. Construction has just commenced.
Bill and Monica are now living in a manufactured (or mobile) home on the
farm. The mobile home has been hooked up to the water and electricity
lines and to the septic tank (the farm not being on any sewer line) and is
very comfortable. Title to the farm, retained by Bill when he divorced
Hillary, is held jointly by BiJl and Monica but the mobile home is in Bill’s
name only.
The crop failures and the cost of rebuilding have generated creditors.
Some have already obtained judgments against him and registered their
judgments against title. Charges on title are listed below.
4
30 (a) Creditor C retains you. He wants to be paid. Advise him whether he can
commence an action for sale of the land under the Court Order
Enforcement Act and whether he has any other options. Describe the
process for an execution sale of land and, assuming that there will be a
shortfall, advise him how the proceeds will be distributed.
10 (b) Advise Bill about any options he may have or exemptions he may claim
with respect to the sale of the farm. The farm has been in the family for
two generations and he believes that Monica will leave him if he loses the
farm.
10 (c) Advise two other creditors, F and G, who have recovered judgments
against Bill but have not yet registered judgments against Bill’s title to land,
whether they will be paid anything if the farm is sold.
END OF EXAMINATION