Court rejects RBC cross examination bid
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A British Columbia court has refused to let Royal Bank of Canada (RBC) cross-examine a court-appointed monitor over a group of insolvent trucking and logistics companies.
The Supreme Court of British Columbia ruled on August 6, 2026, dismissing RBC‘s bid to compel document production and oral examinations of Crowe MacKay & Company Ltd., the monitor, and its legal counsel. The monitor was appointed after V K Delivery & Moving Services Ltd. and three related companies entered creditor protection on May 16, 2025.
Justice Basran pointed to the settled principle that monitors, as officers of the court, face examination only in exceptional or unusual circumstances.
The process is meant to test whether their fees are fair and reasonable, not to lay groundwork for a lawsuit. Going through each of RBC‘s complaints, Justice Basran found no maladministration.
The RBC Georgia transfer was immaterial against the companies’ roughly $3 million in monthly revenue and an $8.35 million refinancing effort underway at the time. The Canada Revenue Agency (CRA) shortfall claim had no evidentiary foundation.
The lease and collateral problems were real oversights, but not the kind of exceptional conduct that opens a monitor up to broad cross-examination. According to the filing, the court’s decision has implications for banks and workout teams.
A bad outcome in a CCAA proceeding doesn’t, on its own, open the door to putting a monitor through the wringer. Courts still draw a hard line between checking a monitor’s fees and re-litigating its judgment calls after the fact.
RBC can still examine the monitor and its counsel, but only on whether their claimed fees are fair and reasonable.
Costs on both applications will be argued November 2 and 3, 2026. The case involves V K Delivery & Moving Services Ltd. and three related companies.
These companies are Product Line Holdings and Logistics Ltd., VK 24/7 Logistics Solutions Ltd., and VK Linehaul Ltd.. They entered creditor protection on May 16, 2025.
The stay of proceedings was extended several times before the court denied a further extension on December 9, 2025, citing bad faith by the companies.
