Chan v. The Queen, 2001 DTC 5570, 2001 FCA 302 -- summary under Subsection 107(2)

A taxpayer, who was the beneficiary of a trust established by his father and mother who were the trustees, received approximately $1.8 million in settlement of an action brought against them in respect of their handling of assets of the trust. In affirming a finding of the Tax Court that the monies received were proceeds of disposition of his capital interest in the trust rather than being property distributed to him by the trust in satisfaction of his capital interest in the trust as contemplated by s. 107(2), Sexton J.A. noted that the taxpayer had failed to demonstrate that the property which was transferred to him was indeed property distributed out of the trust assets.