Bankruptcy Before Nov 13, 2015
Implementation of the Supreme Court of Canada decision in the matter of:
407 ETR Concession Company Limited v. Superintendent of Bankruptcy
[In the Matter of the Bankruptcy of Matthew David Moore]
Introduction
On November 13, 2015, the Supreme Court of Canada dismissed the appeal of 407 ETR in the above referenced matter. The decision of the Supreme Court of Canada considered whether the plate denial provisions of the Highway 407 Act conflicted with the discharge provisions of the Bankruptcy and Insolvency Act (BIA). At the hearing before the Supreme Court of Canada, 407 ETR’s position was that provincial law regarding plate denial should apply following a person’s discharge from bankruptcy. The Attorneys General for several provinces, including the Province of Ontario, advanced positions in support of the provinces’ jurisdiction to legislate in the area of vehicle licensing.
The Supreme Court of Canada’s decision held that the discharge provisions of the BIA override the plate denial provisions of the Highway 407 Act.
The effect of the Supreme Court of Canada’s decision is that pre-bankruptcy amounts owed to 407 ETR which are deemed to be provable claims under the BIA, can no longer be collected through plate denial under the Highway 407 Act following a customer’s discharge from bankruptcy.
407 ETR will immediately implement the decision of the Supreme Court of Canada.
Where a customer has been discharged from bankruptcy and has pre-bankruptcy amounts in plate denial which are provable claims under the BIA, 407 ETR will credit the pre-bankruptcy amounts still owing to 407 ETR from the period prior to a customer’s assignment into bankruptcy (which includes interest and fees incurred on those amounts) upon receipt of a Notice of Bankruptcy, and an Order of Discharge or a Certificate of Discharge.
407 ETR has undertaken a review of its files and will communicate in writing with those persons who have previously informed 407 ETR regarding their bankruptcy and who may be impacted by the decision.
Questions and Answers
1) Does this FAQ apply to me?
If you made an assignment into bankruptcy after November 13, 2015 these Frequently Asked Questions do not apply to you. Please refer instead to the Frequently Asked Questions for customers who made an assignment in bankruptcy after November 13, 2015. In all instances, 407 ETR will comply with the decision of the Supreme Court of Canada.
2) When and how will 407 ETR be implementing the decision of the court?
407 ETR is immediately implementing the decision of the Supreme Court of Canada. We will communicate in writing with those persons who have previously informed 407 ETR regarding their bankruptcy and who may be impacted by the decision.
If you have provided us with your Notice of Bankruptcy and Order of Discharge or Certificate of Discharge and if there are pre-bankruptcy amounts still owing to 407 ETR from the period prior to your assignment into bankruptcy, which are provable claims under the BIA and which are currently in plate denial, you will be sent a letter within 10 business days of receipt. The letter will confirm any credit that may be applied to your 407 ETR account and the Ministry of Transportation will be advised to update their records to reflect this credit.
You may be removed from plate denial if:
- you have not incurred any new debt with 407 ETR for which you may be in plate denial since your assignment into bankruptcy; and
- you have no other debts with the Ministry of Transportation (e.g. parking tickets) for which plate denial is in effect.
3) Where will you send information to me?
407 ETR will send information to your address on record with the Ministry of Transportation.
4) What does 407 ETR need as proof of my discharge from bankruptcy?
407 ETR requires a copy of your Notice of Bankruptcy and Order of Discharge, or Certificate of Discharge, to determine whether any amounts may be credited to your account. Where a customer has been discharged from bankruptcy and has pre-bankruptcy amounts in plate denial which are provable claims under the BIA, 407 ETR will credit your pre-bankruptcy amounts still owing to 407 ETR from the period prior to your assignment into bankruptcy (which includes interest and fees incurred on those amounts). Amounts charged to you after your assignment into bankruptcy remain due.
To assist you in providing us with the required documentation, please refer to a downloadable form from our website at www.407ETR.com entitled "Information for Bankrupt Customers". Once completed, please send the form to us with the required documentation.
5) Where and how do I send the materials? Can I drop it off?
Please send your Notice of Bankruptcy and Order of Discharge or Certificate of Discharge to 407 ETR Bankruptcy Department at:
PO BOX 11176 STN A, Brampton, Ontario, L6V 0A8. (Specifically designated for the implementation of the Court’s decision)
You may also send your documents(s) to the 407 ETR Bankruptcy Department by:
- Fax to: 905-264-5247
- Email to: Bankruptcy@407ETR.com
6) I want plate denial lifted on an expedited basis. How can that be done?
We will implement the Supreme Court of Canada’s decision immediately. If you have provided us with your Notice of Bankruptcy and Order of Discharge or Certificate of Discharge, we will send you a letter within 10 business days of receipt of these documents confirming any amounts that were credited to your account. Should you require an expedited review, please contact us and we will endeavor to facilitate your request.
You may be removed from plate denial if:
- you have not incurred any new debt with 407 ETR for which you may be in plate denial since your assignment into bankruptcy; and
- you have no other debts with the Ministry of Transportation (e.g. parking tickets) for which plate denial is in effect.
7) I don't know if 407 ETR has my Notice of Bankruptcy, Order of Discharge or Certificate of Discharge. Can you please check for me and tell me?
407 ETR has undertaken a review of its files and will communicate in writing with those persons who have previously informed 407 ETR regarding their bankruptcy and who may be impacted by the decision. Please refer to Questions 4 and 5, and provide us with the required documentation.
8) If I don’t have the required documents showing my assignment and discharge from bankruptcy, how can I get them?
You can either contact your Trustee in Bankruptcy or obtain this documentation by calling the Superintendent of Bankruptcy at 1-877-376-9902. Please refer to question 4 for the specific documents that are required. Please note that any costs for obtaining the required documentation will be your responsibility.
9) I received a letter in the mail from 407 ETR that says my account is being credited for amounts still owing from the period prior to my bankruptcy. Do I owe any other money to 407 ETR? If so, how much and why do I owe it?
If you have a balance owing on your account, you will receive an invoice on your next bill cycle that will show the amount credited to your account as well as any balance still owing. Please be advised that any use or charges incurred following your Notice of Bankruptcy continue to be your responsibility.
10) I received a letter stating that 407 ETR has all my bankruptcy documents. How long will it take for plate denial to be lifted?
Please allow up to 10 business days for the Ministry of Transportation to update their records to reflect the adjustment.
You may be removed from plate denial if:
- you have not incurred any new debt with 407 ETR for which you may be in plate denial since your assignment into bankruptcy; and
- you have no other debts with the Ministry of Transportation (e.g. parking tickets) for which plate denial is in effect.
11) Prior to the Supreme Court of Canada’s decision, I paid 407 ETR pre-bankruptcy amounts. Can I receive a refund or a credit?
A class action was brought by Scarfone Hawkins LLP relating to the use of the licence plate denial remedy for insolvent customers. The class action has now been settled, and Scarfone Hawkins LLP is administering the settlement. Please contact Scarfone Hawkins LLP at p:905-526-4394 for further information.
12) I filed a consumer proposal. Can I get out of plate denial?
We have reviewed the impact of the Supreme Court of Canada decision on consumer proposals. The Court's decision did not address consumer proposals. However, 407 ETR has elected to remove amounts from plate denial where those amounts are covered by a consumer proposal that has been accepted under the BIA. Your proposal administrator will be able to assist you as to whether this applies to you. Please provide a letter from your proposal administrator confirming that your proposal has been accepted.
13) I have filed a Notice of Bankruptcy however, I have not been discharged. Can I get out of plate denial?
407 ETR requires your Notice of Bankruptcy and evidence of your discharge from bankruptcy to implement the decision. You will be sent a letter within 10 business days of receipt of evidence of your discharge that notes any credit that has been applied to your account.
You may be removed from plate denial if:
- you have not incurred any new debt with 407 ETR for which you may be in plate denial since your assignment into bankruptcy; and
- you have no other debts with the Ministry of Transportation (e.g. parking tickets) for which plate denial is in effect.
14) I want a copy of the Court decision and more information about the case, where can I obtain it?
You may obtain a copy of the decision in the case of 407 ETR Concession Company Limited v. Superintendent of Bankruptcy from the Supreme Court of Canada website. The docket number to search is 35696.
15) I heard there is a class action against 407 ETR regarding Bankrupt persons. How does this affect me?
A class action was brought by Scarfone Hawkins LLP relating to the use of the licence plate denial remedy for insolvent customers. The class action has now been settled, for further information, please see "Notice of Certification and Settlement Approval / 407 ETR Vehicle Permit Renewal Denial and Bankruptcy” and contact the law firm Scarfone Hawkins LLP (p:905-526-4394).
