Can an assignee continue to defend an action in place of a bankrupt?
British Columbia, Canada
The following excerpt is from Le Soleil Hotel & Suites Ltd. v. Le Soleil Management Inc., 2007 BCSC 1269 (CanLII):
In Berry v. Cypost (No. 4), 2004 BCSC 180 the applicant sought, pursuant to Rules15(3) and (4), to be substituted as a defendant in place of a bankrupt based on an assignment by the trustee in bankruptcy of all right, title and interest in and to the action. Burnyeat, J. held that Rules 15(3) and (4) did not apply as there had been no change or transmission of liability under the assignment at issue and Rules 15(3) and (4) do not permit an assignee to continue the defence of an action unless there has also been an assumption of the assignor’s liabilities arising out of the action.
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