In what circumstances will a court order that the proceeds of a sale of machinery be returned to the court as proceeds of the sale of the machinery for damages?
British Columbia, Canada
The following excerpt is from Proprietary Industries Inc. v. eDispatch.com Wireless Data Inc., 2002 BCSC 1207 (CanLII):
In Penner v. Williamson, supra, MacKinnon J. dealt with circumstances in some ways similar to those in the case at bar. In the context of an action for damages arising from alleged misrepresentations made in the course of the sale of a company whose only asset was machinery, the applicants sought an order under Rule 46 seeking to have the proceeds of sale of the machinery paid into court. MacKinnon J. held that because the claim was for damages, no question would arise as to ownership of the machinery, nor the funds into which it had been converted. He held that Nicolls, supra, was of no assistance in the circumstances before him.
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