In an April 30, 2019 endorsement accompanying a receivership order made in the matter of Royal Bank of Canada and D.M. Robichaud Associates Ltd. (“D.M. Robichaud”), Justice Hainey of the Ontario Superior Court of Justice, Commercial List (the “Court”) held that the receiver’s charge and the receiver’s borrowings charge should have priority over deemed trusts under provincial construction legislation.1
The Supreme Court of Canada recently granted leave to appeal from the Alberta Court of Appeal's decision in Capital Steel Inc v Chandos Construction Ltd, 2019 ABCA 32. The case addresses the enforceability of clauses that impose monetary consequences for breach of contract, particularly where those consequences are levied because of a contracting party's insolvency.
On June 19, 2019, the Ontario Court of Appeal released its decision in Third Eye Capital Corporation v. Ressources Dianor Inc./Dianor Resources Inc. [1], addressing the following issues:
Good evening.
Following are this week’s summaries of the civil decisions of the Court of Appeal for Ontario.
In Galantis v Alexious, [2019] UKPC 15 the Privy Council concluded that the oppression remedy existing under the Bahamian Companies Act cannot be invoked after the dissolution of a company, with respect to oppressive conduct by directors that occurred before the dissolution of the company.
Two priority issues arise between creditors of a common debtor:
For more than 70 years, the energy industry has been one of Alberta's primary economic engines. It is no secret, however, that large scale oil and natural gas development can have a detrimental impact on the environment if it is not properly managed. This interplay between risk and benefit creates complicated policy and regulatory tensions as exploration and production (E&P) companies become financially distressed. Most stakeholders benefit from responsible resource development, but their interests diverge when a company becomes insolvent.
The Alberta Court of Appeal recently upheld an unreported decision of the Court of Queen’s Bench that unpaid taxes on linear property (which were pipelines and associated facilities in the case at bar) formed only unsecured claims against the debtors.
Bill C-97 (the “Bill”) was introduced in Parliament to implement the federal budget tabled by the Liberal government on March 19, 2019. The Bill includes proposed changes to the Canada Business Corporations Act (“CBCA”), the Bankruptcy and Insolvency Act (“BIA”) and the Companies Creditors’ Arrangements Act (“CCAA”).