Re Sandwich Foundry Co.

1938 CanLII 610 (ON SC)Decided Employment standards

Wage-Earners Standing in Bankruptcy: Security Agreement Challenge

Summary

This is a bankruptcy and insolvency case involving wage-earners who sought to challenge a security agreement entered into by their employer. The court addressed whether the agreement constituted a fraudulent preference or an unauthorized assignment of assets, and whether the employees had standing to object to claims arising after the agreement's execution.

Outcome

Agreement found not to be a fraudulent preference; wage-earners found to lack standing.

Key Factors

  • fraudulent preference
  • wage-earners' rights
  • standing
  • security agreement
  • Bankruptcy Act

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