An Alberta court has denied hog-company Sunterra’s request to appeal a decision finding it owes Compeer Financial $35 million because of cheque kiting.
Alberta Court of Appeal justice Michelle Crighton also denied Compeer’s request to appeal certain parts of the January ruling from King’s Bench .
Compeer Financial said Sunterra 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.
In the original case, Justice Michael Lema said the cheque-writing occurred “on an astonishing scale” and found Sunterra and Ray Price liable for $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.
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 both Sunterra and Compeer presented are not legally valid.
For a short time Sunterra owned a hog-packing plant at Mitchell, Ont.
