B.C. Supreme Court Rules Former Growers Share in Co-op Surplus

The B.C. Supreme Court has ruled that former members of the B.C. Tree Fruits Co-operative are entitled to share a surplus of funds resulting from the sale of the co-operative’s assets. This decision comes after the co-op, which ceased operations in July 2024, liquidated its assets to pay creditors. The ruling, delivered by Justice Miriam Gropper, blocks current members’ attempts to exclude former growers from receiving a portion of the estimated $12 million to $15 million surplus.

In her decision, released on a Thursday, Justice Gropper stated that former members must be included in the distribution process. The proposed resolution by current members to amend the co-operative’s rules to deny former growers their share was deemed “oppressive conduct” and “an abuse of power.” Gropper emphasized that excluding former members from the surplus was both burdensome and a significant departure from standards of fair dealing.

Background of B.C. Tree Fruits Co-operative

Founded in 1936, the B.C. Tree Fruits Co-operative grew to represent over 230 farming families and included various ventures such as a grower supply company and a craft cider brand. The co-op faced difficulties, including low fruit volumes and adverse weather conditions, which ultimately led to its decision to cease operations in mid-2024. Following this announcement, the co-operative sought court approval to liquidate its assets, including a major cold storage facility sold to a pharmaceuticals group.

As a result of the liquidation, approximately 68 percent of the remaining funds are earmarked for current members, while 32 percent is allocated to former members. This translates to roughly $4 million for the former growers, as confirmed by the court.

On July 9, 2025, a group of 38 current members requested a special general meeting to vote on a resolution aimed at removing Rule 125, which governs the distribution of surplus funds. Former members contested this proposed change in court, asserting their long-standing contributions to the co-operative’s assets and their rightful expectation to share in any surplus generated.

Legal Findings and Implications

Justice Gropper agreed with the former members, stating they had a legitimate financial interest in the surplus funds and were entitled to legal protection. She noted that they had reasonable expectations that they would benefit from the distribution of any surplus. The ruling highlighted competing claims regarding the reasons for the co-operative’s financial collapse. Current member representative Amarjit Singh Lalli argued that former members’ departure negatively impacted revenue and led to increased costs.

An affidavit from the co-operative’s interim chief executive officer indicated a dramatic decrease in apple volumes and mentioned challenges current members faced in estimating crop yields due to internal disputes. Despite these claims, Justice Gropper concluded that the evidence did not support allegations that former members were solely responsible for the co-operative’s downfall.

She stated that the rationale for excluding former members was primarily to benefit current members financially. The court ordered the co-operative to adhere to the existing distribution rules, ensuring that both current and former members receive their fair share of the surplus funds.

As of September 2025, the B.C. Tree Fruits brand remains in operation under the ownership of Wildstone Construction Group and is managed by Algoma Orchards, which aims to stabilize the Okanagan’s tree fruit industry following the co-operative’s turbulent history.