Upon the filing of an appeal of a bankruptcy order, that order is stayed pursuant to section 195 of the Bankruptcy and Insolvency Act (“BIA”). In Msi Spergel v. I.F. Propco Holdings (Ontario) 36 Ltd., 2013 ONCA 550, the Ontario Court of Appeal had to decide whether that stay suspends the limitation period applicable to a motion by a trustee to set aside a preferential payment by a bankrupt under s. 95 of the BIA.
On October 28, 2013, the Ontario Ministry of the Environment (MOE) announced that it had reached a settlement with the former directors and officers of Northstar Aerospace whereby those former directors and officers agreed to pay $4.75 million for costs associated with the remediation of contaminated lands owned by the now-bankrupt company. The Environmental Review Tribunal approved the Minutes of Settlement at the hearing held on October 28.
Intellectual property rights are critical to various economic sectors. Many companies depend on licensed technology to operate and survive. The licensor-licensee relationship may deteriorate, especially if the licensor starts showing signs of distress or, even worse, becomes insolvent. Canadian legislation offers some clarity regarding each of the parties' rights and obligations in the event of a licensee's insolvency or bankruptcy.
I am tempted to draft a blog post listing the top ten ironies of bankruptcy law. There is no shortage of contenders for that list, and vying for the top spot would be the simple fact that you need a lot of money to go bankrupt. Bankruptcy (or its cousins, creditors arrangement and administration -- but not receivership, the economies of which could also feature in a blog post of its own) involves an influx of lawyers, accountants, and other professionals who negotiate and bicker their way through the company’s balance sheet, all while charging by the hour.
The Supreme Court of Canada’s decision in (Re) Indalex has changed the landscape for both lenders and borrowers in Canada who sponsor registered defined benefit pension plans. For lenders, carefully drafted loan documentation and effective planning can enhance the protection of a secured lender’s position in the face of the broadened scope of a deemed trust applicable to a borrower’s defined benefit pension obligations.
R. v. Dunn, Beatty and Gollogly 2013 ONSC 137
Introduction
The British Columbia Court of Appeal has sent a clear message that it is necessary to file as well as serve a notice of appeal in bankruptcy matters within the prescribed 30-day time limit. The recent decision of Friedland (Re), 2012 BCCA 381, establishes a crucial practice point for insolvency practitioners.
introduction
On January 27, 2012, Justice Newbould of the Ontario Superior Court of Justice (Commercial List) (the “Court”) released his decision in Temple (Re),1 holding that the Ontario Limitations Act, 20022 (the “Act”) does not apply to a bankruptcy application and does not operate to extinguish a debt owing to a creditor.
The Ontario Limitations Act, 2002
The Take-Away
Missing the limitations period for bringing a court action to recover a debt does not extinguish other legal rights and remedies in respect of that debt, such as bringing an application for bankruptcy or proving a claim in a bankruptcy estate.
The Case