Executive Summary: Key Legal and Evidentiary Issues

• GCMR Contracting Inc. sought judicial review of an Insolvency Trustee's decision disallowing its creditor's claim under subsection 135(2) of the Bankruptcy and Insolvency Act

• Jurisdiction over bankruptcy matters belongs exclusively to provincial courts under subsection 183(1) of the Act, not the Federal Court

• Counsel for the Applicant conceded at the hearing that his client, who at the time was acting as a self-represented litigant, had sought judicial review in the wrong court

• Subsection 17(6) of the Federal Courts Act was determinative, confirming the Federal Court has no jurisdiction to entertain the judicial review

• Respondent George Nesbitt, the only respondent who provided written representations, was awarded costs of $3,600 under Tariff B of the Federal Courts Rules

• The Applicant had ample opportunity in advance of the hearing to concede on the jurisdictional issue, which would have avoided the unnecessary waste of time and resources for a hearing scheduled for four hours

The facts of the case

GCMR Contracting Inc. filed an application for judicial review before the Federal Court of Canada, challenging a decision rendered on April 1, 2025, by the Insolvency Trustee, MNP Ltd. The Trustee had disallowed the Applicant's creditor's claim pursuant to subsection 135(2) of the Bankruptcy and Insolvency Act, RSC 1985, c B-3. The respondents named in the proceeding were MNP Ltd., Bruno Pietro Oliviero, and George Nesbitt. The matter was heard on April 8, 2026, by Madam Justice Whyte Nowak via Zoom videoconference.

The jurisdictional question

Prior to the hearing, the Court asked the parties to be prepared to address whether the Federal Court has jurisdiction to consider the matter. Subsection 183(1) of the Bankruptcy and Insolvency Act lists the courts that have jurisdiction over bankruptcy matters, all of which are provincial courts. Additionally, subsection 17(6) of the Federal Courts Act, RSC 1985, c F-7, was determinative, and the Federal Court had no jurisdiction to entertain judicial review of the Decision. At the hearing, counsel for GCMR Contracting Inc. conceded that his client, who at the time was acting as a self-represented litigant, had sought judicial review in the wrong court. The Court agreed with that concession.

Costs and the respondent's position

Of the three named respondents, only George Nesbitt provided written representations on the application. His counsel advised that his costs thrown away are $3,600, based on a calculation under Tariff B of the Federal Courts Rules, SOR/98-106. The Court agreed that Mr. Nesbitt should have his costs, particularly since his counsel raised the issue of jurisdiction and the Applicant had ample opportunity in advance of the hearing to make the concession on jurisdiction to avoid the unnecessary waste of time and resources associated with the hearing which was scheduled for four hours.

The ruling and outcome

Madam Justice Whyte Nowak dismissed the application for judicial review on the basis that the Federal Court lacked jurisdiction to review the Trustee's decision. The successful party, respondent George Nesbitt, was awarded costs in the fixed amount of $3,600, payable forthwith. No other amounts were awarded or discussed in the decision.