The Supreme Court of Canada has recently granted leave to appeal from the judgment of the British Columbia Court of Appeal in Edward Sumio Nishi v. Rascal Trucking Ltd. This appeal focuses on the test for a resulting trust in the commercial context.

In the latest decision of the British Columbia Supreme Court (the “Court”) regarding the bankruptcy of Ted LeRoy Trucking Ltd.

Lenders should be cognizant that the granting of security by a debtor may be subject to challenge as a fraudulent preference in the event the debtor subsequently files for liquidation or proposal proceedings under the Bankruptcy and Insolvency Act (Canada) (the “BIA”) or restructuring proceedings under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”). Such risk arises if the debtor is insolvent the time the security was granted.

On February 2 and 9, 2012, the Ontario Superior Court released two decisions in the ongoing proceedings of Timminco Limited and Bécancour Silicon Inc. (together, the Timminco Entities) under the Companies’ Creditors Arrangement Act (CCAA) that further develop the law regarding pension claim priorities in insolvency proceedings.

In the recent decision of the Supreme Court of Canada in Toronto-Dominion Bank and Her Majesty the Queen (2012 SCC 1), the Supreme Court succinctly agreed with the reasons of Justice Noël of the Federal Court of Appeal.

In January and February of 2012, Justice Morawetz of the Ontario Superior Court of Justice (Commercial List) released two decisions¹ in which he authorized a debtor-in-possession (“DIP”) financing charge, an administration charge, and a directors and officers (“D&O”) charge ranking ahead of, among other claims, possible pension deemed trusts over the objection of the debtor companies’ unions and on notice to the members of the companies’ pension administration committees.

Arctic Glacier Income Fund (CSNX:AG.UN) (the “Fund”) has obtained creditor protection from the Manitoba Court of Queen's Bench to allow its subsidiaries to continue normal operations as the Fund seeks new investors.

The Arctic Glacier Income Fund is an unincorporated, open-end mutual fund trust. The Fund's head office is located in Winnipeg, Manitoba. Arctic Glacier's operating subsidiaries manufacture and distribute packaged ice products in Canada and United States.

Lawrence Gold recently presented on abuses of the Repair and Storage Liens Act (Ontario) (“RSLA”) impacting commercial finance and insurance companies to the Ontario Personal Property Security Legislation Committee (“PPSL Committee”). As changes to the RSLA will likely not be implemented in the near future, concerns regarding abuse of lien claimant rights are of significant importance to the industry.

The Repair and Storage Liens Act¹ (the “RSLA”) endeavors to protect the rights of persons that maintain or increase the value of collateral though repair and/or storage services.

Since Nortel Networks Corporation and a number of related companies (together, “Nortel”), initiated a reorganization under the Companies’ Creditors Arrangement Act (“CCAA”) over two years ago, the Ontario Ministry of the Environment (the “MOE”) has sought to hold Nortel responsible to remediate environmental contamination remaining on properties once or currently owned by Nortel. Nortel has maintained that its responsibility for the environmental contamination should not be prioritized ahead of its other obligations.