A summary of recent Canadian insolvency-focused court decisions.
How is reasonable notice calculated where an employee is fired then rehired immediately after a court-approved sale under the CCAA? The appellant was a technology company operating in the air travel space. The respondent first started her employment with the appellant in July 2011 as…
What factors are relevant to the approval of a proposal trustee's fees in the absence of time dockets? The trustee applied for taxation of its Statement of Receipts and Disbursements for fees of $9,973.46 plus HST. The taxation raised the issue as to how a…
What is the limitation period in a case where it is alleged that a creditor is liable for a debtor's insolvency? Bluberi is a Canadian gaming company that specialized in the development and sale of casino games. From 1994 to 2012, Bluberi focused on selling its technology…
Can a party be forced to mediate its claim as part of a CCAA proceeding? The Petitioners owned and operated a pulp mill in Pictou County, Nova Scotia. On January 31, 2020, the Petitioners were required to shut down the mill, resulting in a complete cessation of their business…
What is the test for a stay extension that is opposed? The Petitioner, 1057863 B.C. Ltd., a British Columbia company, was the parent company of the other Petitioners. Together, the group operated a pulp mill in Pictou County, Nova Scotia. They also conducted related forestry…
Can rising real estate prices impact a bankrupt's discharge? The Debtor filed an assignment in bankruptcy in October 2019. He was the sole registered owner of a residential property that he valued at $635,000. His secured debt totaled over $590,551.75. Based upon these assessments, as of…
Is a receiver bound by an arbitration clause in an agreement it wishes to sue on? Mundo Media (“Mundo”), a company which carried on business in Canada and the US, was placed in receivership in April 2019. The appointment order authorized the Receiver to exercise…
Can a law firm appeal an order requiring the repayment of professional fees in a bankruptcy? In three related bankruptcy proceedings and two related civil actions, the Trustee and its counsel (the “Law Firm”) filed notices of appeal from orders of the trial judge requiring…
In what circumstances should the court exercise its discretion to dismiss a bankruptcy application? The respondents brought an application for a bankruptcy order against the appellant, Medcap, pursuant to s. 43(1) of the Bankruptcy and Insolvency Act. The application judge granted the application and made a…
Should a defendant who has evaded formal service be able to set aside default judgment? Northern Protocol and its principal, Aaron Weston, were the parties to several loan agreements with On Deck Capital. Northern Protocol was the borrower, and Weston provided a personal guarantee of…
