Can a creditor sue a trustee without the permission of the court?
Saskatchewan, Canada
The following excerpt is from Dubyk (Re), 2009 SKQB 426 (CanLII):
Firstly, creditors are not free to sue trustees without court permission. Section 215 expressly prohibits actions against trustees without leave of the court. Leave is not automatic; sufficient facts must be alleged to enable a court to determine if there is any basis for an action against the trustee. (Leblond v. Tremblay (1985), 54 C.B.R. (N.S.) 199(Que. C.A.))
Furthermore, the ‘action’ otherwise prohibited by s. 215 must mean a cause of action known at law and not simply an allegation of mismanagement or dissatisfaction with the trustee’s behavior. The constituent elements of an alleged cause of action must be supported sufficiently by affidavit. (MacLean v. Morash, para. 18)
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