Berjak Law Defeats Receivership Application in Alberta
Berjak Law has secured a significant litigation victory in the Court of King’s Bench of Alberta, successfully defending its clients against a contested application that sought to place their business into receivership.
Ahmad Berjak, partner and civil litigation lawyer at Berjak Law, represented the clients in opposing the application.
The applicants sought a court order that would have placed the business into receivership — a serious remedy that can transfer significant control over a company and its assets away from existing management and into the hands of a court-appointed receiver.
Berjak Law opposed the application.
The Court dismissed it.
The Court’s Decision
Justice Little found that the applicants had failed to demonstrate irreparable harm if the requested order was not granted.
As a result, the receivership application was dismissed and costs were awarded to Berjak Law’s clients.
For the clients, the decision meant more than simply defeating an application. It allowed them to avoid the significant consequences that could have followed from the appointment of a receiver and to retain control over their business.
What Is a Receivership?
Receivership is a powerful legal remedy commonly encountered in disputes involving businesses, creditors, secured debt and financially distressed companies.
Depending on the terms of the court order, a receiver may be given authority to take possession or control of business property, manage assets, collect funds and take other steps directed by the Court.
For a business owner, the consequences can therefore be substantial.
A contested receivership application can involve questions not only about money, but about who will control the company, what happens to its assets and whether existing management will remain in a position to operate the business.
That is why these applications can require immediate and strategic legal action.
Defending the Business
The case demonstrates the importance of testing whether the evidence actually supports the extraordinary relief being requested from the Court.
It is not enough for serious allegations to be made. The party asking the Court to intervene must establish the legal and evidentiary basis required for the order it seeks.
In this case, Berjak Law successfully opposed the application, the requested receivership was refused, and costs were awarded in favour of our clients.
The Decision Draws Attention
The result was also reported by allAlberta, a local business publication covering Alberta’s business and professional community.
For Berjak Law, the result reflects the approach Ahmad brings to complex civil and commercial disputes: understand the evidence, identify what must actually be proven, and build the case accordingly.
Commercial Litigation Lawyers in Edmonton
Business disputes can escalate quickly.
Whether the issue involves a receivership application, shareholder dispute, debt claim, injunction, breach of contract or another commercial dispute, the consequences can extend well beyond the courtroom.
Berjak Law represents individuals and businesses in civil and commercial litigation throughout Alberta.
If your business is facing litigation or urgent court proceedings, contact Berjak Law to discuss your matter.
Berjak Law
301-10080 Jasper Avenue NW
Edmonton, Alberta
780-879-0200
