Sunterra request to appeal decision in cheque kiting case denied
REGINA — An Alberta court has denied Sunterra’s request to appeal a decision finding it owed an American lender $35 million after a cheque kiting scheme.
Alberta Court of Appeal justice Michelle Crighton ruled against the request in an April 21 written decision.
She also denied the lender’s request to appeal certain parts of the January ruling from King’s Bench.
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Why it Matters: Sunterra Farms has hog, grain and greenhouse operations and several retail grocery locations in Alberta. The well-known Price family operation is often cited as a successful value-added business.
Sunterra’s troubles in its American operations came to light after Compeer Financial, the lender, alleged the company was sending large cheques back and forth between its U.S. and Canadian companies. Sunterra operated three hog companies in the United States at that time.
Justice Michael Lema later found the cheque-writing occurred “on an astonishing scale” and found Sunterra and Ray Price liable for the $35 million Compeer lost.
Sunterra entered Companies’ Creditors Arrangement Act protection at the same time the allegations were made and remains under that stay of proceedings while it restructures.
Lema, in his lower court ruling, likened what occurred to a game of musical chairs.
Sunterra argued in its appeal application that Lema had made errors of law and fact and put the burden of proof unfairly on the company. It said there was no expert opinion evidence that the cheque kiting had occurred.
Compeer argued that Lema found Price personally liable but did not find the same for two other employees.
Crighton said the arguments were not legally valid.
Source: producer.com