The B.C. Supreme Court has rejected efforts by current members of the B.C. Tree Fruits Co-operative to block former growers from receiving leftover millions following the sale of assets to settle debts. Justice Miriam Gropper’s ruling mandates that former members must share in the surplus funds distribution, halting a vote by current members to exclude them from the money.
Founded in 1936, B.C. Tree Fruits grew to represent over 230 farming families, operating a grower supply company, a Kelowna fresh fruit market, and a craft cider company. Due to challenges like low fruit volumes and adverse weather, the co-op ceased operations in July 2024, leading to asset liquidation, including the sale of a cold storage facility to a pharmaceuticals group.
After creditors were paid, approximately $12-15 million is available for distribution among members. Rule 125 dictates that both current and former members are entitled to 68% and 32% of the funds, equating to about $4 million for former members. However, current members sought to amend this rule, prompting former members to challenge the change in court.
Gropper sided with former members, noting their significant contribution to building the co-op’s assets over the years. She emphasized their reasonable expectation to benefit from any surplus. The court also highlighted disputes over the co-op’s financial collapse, with differing claims pointing to various factors causing the situation.
The ruling emphasizes that former members have a clear financial interest and deserve legal protection, rebuffing attempts to exclude them for the current members’ financial gain. The court mandated adherence to existing rules for surplus funds distribution to ensure fair treatment of both current and former members.
B.C. Tree Fruits is now owned by Wildstone Construction Group and managed by Ontario-based Algoma Orchards.