Executive Summary: Key Legal and Evidentiary Issues

• Foreclosure was initiated over defaulted mortgage and loan agreements linked to a residential property.

• The petitioner sought full indemnity legal costs from one respondent due to prolonged delays and procedural obstruction.

• Legal questions arose around cost entitlement under section 20 of the Law and Equity Act despite contractual cost terms.

• The respondent’s repeated non-compliance required enforcement measures, including a writ of possession and bailiff intervention.

• Estate administration became relevant after the death of one joint property owner during proceedings.

• The court ultimately differentiated cost liability between the deceased’s estate and the living respondent based on conduct.

Facts and outcome of the case

Background and parties involved
The case involves Beem Credit Union, which assumed the assets and liabilities of Blueshore Financial Credit Union during the litigation. The respondents were Melvin Robert Bruchet and his late wife, Merne Bertelle Bruchet, who jointly owned a residential property in North Vancouver. The case also involved Her Majesty the King in Right of British Columbia, John Doe, and judgment creditors including the Bank of Nova Scotia and TD Bank.

The dispute arose after the Bruchets defaulted on several financial obligations secured by their home. These included a 2020 Residential Term Loan Agreement, a Personal Account Overdraft Agreement, and a 2010 All Indebtedness Mortgage. Blueshore, and later Beem, initiated foreclosure proceedings on August 24, 2023. Over the course of litigation, Merne Bruchet passed away, leading to additional procedural considerations involving her estate.

Legal proceedings and procedural history
The foreclosure process formally began with an order nisi issued in December 2023, setting out the redemption amount and awarding costs to the petitioner at Scale A. Despite opportunities to redeem the property, Melvin Bruchet repeatedly challenged the proceedings, filing various jurisdictional objections and applications without notice. His conduct delayed the sale process significantly, requiring the petitioner to seek court orders for vacant possession, a writ of possession, and enforcement through a court bailiff.

These steps added considerable cost and complexity. The property was ultimately sold for $2,291,000. After satisfying the mortgage, provincial lien, and utility debts, approximately $1,014,607.31 remained in trust.

Judgment and reasoning
The court ruled in favor of Beem Credit Union, allowing it to recover its legal costs through deductions from the remaining sale proceeds. Judge Bilawich awarded:

• Full indemnity costs against Melvin Bruchet for the steps required to enforce vacant possession, including costs of bailiff services and property cleanout.

• Party-and-party costs at Scale B for procedural attendances that did not already have cost orders.

• A prior lump sum award of $7,500 for the vacant possession application remained unchanged.

The court declined to alter earlier cost awards made by other judges and noted it lacked jurisdiction to retroactively revise those orders. Importantly, costs were only ordered against Melvin Bruchet—not against the estate of his late wife—due to his sole responsibility for the delays and resistance.

Final outcome and cost recovery
Beem Credit Union was awarded a total of $1,146,822.98 as repayment for the outstanding mortgage. An additional $7,500 was awarded as a lump sum cost, and further costs (likely $75,000–$80,000) were permitted subject to assessment and deduction from the remaining proceeds. The petitioner was also granted permission to distribute remaining funds to the estate of Merne Bruchet and to deposit Melvin Bruchet’s share with the court pending further order.