The Quebec Court of Appeal’s unanimous decision in Gestion Éric Savard1 reaffirms the super-priority ranking of CCAA2 DIP financing3 over regular unpaid post-filing obligations, absent steps being taken to reverse this usual order of priorities.
In 7636156 Canada Inc. v. OMERS Realty Corporation1 (“7636156 v. OMERS”), the Ontario Superior Court of Justice (Commercial List) (the “Court”) held that a bankrupt’s landlord was only entitled to have drawn down on a letter of credit by an amount equal to the landlord’s priority claim for three months’ accelerated rent, rather than by the full amount of the letter of credit, and ordered that the landlord pay over the excess to the bankrupt’s trustee.
Whether a former spouse's pension can be shared after bankruptcy depends entirely on where he or she lives
Resolving the way a separated couple’s property is dealt with can be complicated, but it gets even more complex if one of the spouses declares bankruptcy after separation.
With legislation, regulation, jurisprudence and practice evolving continually and rapidly, the need to stay current is more pressing than ever.
As we moved into the new year, we prepared a summary of the main trends in Canadian litigation, grouped into three categories:
- cannabis-related,
- class action, and
- energy sector litigation.
The first two will be felt nationally; the last is more focused on Alberta.
Cannabis-related Litigation
2019 was a busy year for corporate restructuring practitioners in Canada. The year saw an uptick in CCAA filings nationwide, with 38 total proceedings (up from the total of 21 filings in 2018). The Canadian restructuring landscape also some significant shake-ups, with important decisions and extensive legislative changes. The highlights are summarized below:
BIA & CCAA Amended
The Supreme Court this winter will hear (and in one case, has heard and determined) high-profile appeals involving federal and provincial government powers, corporate rights under the Charter of Rights and Freedoms, and two complex commercial appeals.
The Court is also expected to release several decisions on contract law in 2020 that will have significant implications for businesses.
Appeal Heard and Decided
Dans une décision unanime rendue séance tenante le 23 janvier 2020 dans l’affaire 9354-9186 Québec Inc. c. Callidus Capital Corporation, la Cour suprême du Canada a infirmé une décision unanime de la Cour d’appel du Québec. Les motifs de la Cour sont à venir.
As we reported last week, on November 1, 2019, amendments to both the Bankruptcy and Insolvency Act (the “BIA”)
The Ontario Superior Court of Justice recently confirmed in Re McEwen (2019 ONSC 5593) that an insurer's duty of good faith is not extinguished on the bankruptcy of the insured.
In 2009 pedestrian Barbara Lynn Carroll was injured when she was struck by a motor vehicle operated by Robert McEwen and owned by Caroline McEwen.
When a commercial tenant goes bankrupt, the respective rights of landlords and trustees can be complex to sort out. Yet, as illustrated by recent Ontario Superior Court decision 7636156 Canada Inc. v. OMERS Realty Corporation, 2019 ONSC 6106, this determination can have important ramifications on the assets available for distribution to creditors.