A summary of recent Canadian insolvency-focused court decisions.

SanLing Energy Ltd. v. Liu, 2022 ABQB

What is the test for vacating a Mareva injunction/attachment order? The Plaintiff was an operator in the oil and gas industry, and held oil and gas assets in British Columbia and Alberta. Its monetary obligations to the British Columbia Oil and Gas Commission ("BCOGC") and…

Roman Catholic Episcopal Corporation of St. John’s (Re), 2022 NLSC 22

When will the court appoint representative counsel in a mass tort insolvency case? The Applicants had claims for damages against the Roman Catholic Episcopal Corporation of St. John’s (the “Corporation”) for abuse by Christian Brothers while they lived at Mount Cashel Orphanage in St. John’s…

Pandion Mine Finance Fund LP v Otso Gold Corp., 2022 BCSC 136 (CanLII)

What factors will a court consider in determining whether to assign a CCAA debtor into receivership? Otso is a Canadian company that owns a gold mine in Finland. The mine is Otso’s only substantial asset. The petitioners (“Pandion”) loaned money to Otso and its subsidiaries…

Can*Sport Incorporated v. HarbourEdge Mortgage Investment Corporation, 2022 NSCA 8

What level of detail is required in reasons for granting a receivership order? The Respondent, HarbourEdge, was a commercial lender. In 2014, it extended funding to Can*Sport for the construction of a development in Bedford, Nova Scotia.  Can*Sport’s obligations were personally guaranteed by the Applicant Lee…

Carillion Canada Holdings Inc. et al. (Re), 2022 ONSC 66

What are the rules applicable to the interpretation of a tolling order? Carillion provided year-round routine and preventative maintenance services for approximately 40,000 kilometers of highway across Ontario and Alberta. Carillion had leased premises in Alberta from Weinrich since June 2009. In 2018, the Court…

BDO Canada v. Carrigan-Warner, 2022 NSSC 16

Can a trustee's fees be disallowed on the basis that the trustee failed to protect the interests of creditors? In February 2019, the Debtors filed assignments in bankruptcy and the Trustee was appointed. Several weeks prior, the Debtors and the Trustee had entered into an…

Javeri v. Windsor Park High Performance Execution Team Corp., 2021 ABQB 1005

Does a clause in a guarantee offend the anti-deprivation rule? Javeri sold lands to Windsor Park in 2016. Part of the consideration for the sale was a vendor-take-back mortgage (the “VTB Mortgage”) granted to Javeri. Javeri agreed to subordinate the VTB Mortgage to construction financing.…

Shaver-Kudell Manufacturing Inc. v. Knight Manufacturing Inc., 2021 ONCA 925

What conduct is captured by the phrase “debt or liability resulting from obtaining property or services by false pretences” in s. 178(1)(e) of the BIA? A discharge from bankruptcy releases the insolvent debtor from pre-bankruptcy debts or liabilities, subject to certain exceptions. One exception, under…

In the Bankruptcy of Brian Wayne Flight

Does a bankrupt have the right to inspect the trustee's records? The Bankrupt operated a business as a sole proprietor. He filed for bankruptcy on four occasions since 2004, with the last filing occurring in 2016. The Respondent was the licenced insolvency trustee on each…