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in Atlantic Canada is strictly governed byapplicable legislation.UNSECURED CREDITORSRight of Action to Enforce ClaimUnder the Canadian constitution, theprovincial legislatures (including those ineach of the Atlantic Provinces) haveauthority over property and civil rights,including the responsibility for determiningthe rights and remedies of unsecuredcreditors.By operation of the common law and theenactment of provincial legislation, courts inAtlantic Canada provide a right of action tounsecured creditors to enforce claimsagainst debtors for the collection of debts.Proceedings are heard by a single judge.Although it is common practice for a futureplaintiff to send a demand letter prior toinstituting court proceedings, it is notnecessary. Each province prescribes itsown time periods within which a proceedingmust be commenced.Where necessary, interim proceedings(known as motions) may be made to thecourt at any time, usually with notice to theother party, for additional related relief suchas an injunction, preservation of property orother necessary interim orders.Alternative dispute resolution, throughmediation, is available between the partiesto facilitate a settlement if all of the partiesto the dispute agree to the terms ofmediation and any settlement. Parties mayalso choose to resolve a dispute througharbitration. Arbitration can generally beagreed to by the parties subject to theArbitration Act in each province.Superior Court, Trial DivisionWith few exceptions, the civil court in eachof the four Atlantic Provinces is theappropriate forum for an action for acollection of a debt. There is no maximumdollar limit with respect to any claim in civilcourts and there are other strategic benefitspursuant to the Rules of Court in each of theprovinces for proceedings in the superiorcourts. Actions in the Federal Court, TrialDivision, offer a more limited forum but maybe useful in certain circumstances. A right ofappeal exists to the Court of Appeal in eachprovince.Simplified Procedures under Civil ProcedureRulesAll of the Atlantic Provinces apart fromNewfoundland and Labrador have adoptedsimplified procedures under their civilprocedure rules for claims under a certaindollar value.New Brunswick – The simplified procedureunder Rule 79 provides for claims of$75,000 or less to be brought pursuant tothat Rule, which is intended to be more costeffective for creditor collection. Thesimplified procedure eliminates oralexamination for discovery but provides fordocumentary disclosure prior to trial.Nova Scotia – There are two ways analternative proceeding may be commencedin the Nova Scotia Supreme Court: (1) asan action for debt; or (2) as an action fordamages under $100,000. Each type ofproceeding is set out below.Enforcement of Creditors’ Rights 135

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