Alexander Francis Lakin Cobb

Sapient Canada Inc. appealed a trial judgment awarding damages to Atos (successor to Siemens) for wrongful termination of a subcontract involving data conversion and application management support services for an Enbridge software implementation project.

Sapient sought to reduce damages from $6,291,680 to $1,510,738.89, arguing the trial judge erred in: (1) failing to apply the minimum performance principle from Hamilton v. Open Window Bakery Ltd.; (2) misinterpreting the termination for convenience formula; and (3) misinterpreting a limitation of liability clause.

The Court of Appeal found the trial judge erred in failing to apply the minimum performance principle to data conversion services damages, reducing the award by $1,344,275 to $4,947,405.

The court upheld the trial judge's interpretation of the termination for convenience formula and the limitation of liability clause.

Costs were remitted to the trial judge for reconsideration.

GIP Primus, L.P. and Brightwood Loan Services LLC ("GIP"), along with Portco, brought motions seeking orders for Essar Steel Algoma Inc. ("Algoma") to resume payments under a Cargo Handling Agreement, including arrears, and for a priority charge in the alternative.

The motions were based on section 11.01(a) of the CCAA, arguing that Portco provided critical services or licensed property.

The court dismissed the motions, reiterating previous findings that Portco did not provide services or a license, and that the arguments were previously decided.

The court also declined to grant a critical supplier charge under section 11.4 or the general discretion of section 11 of the CCAA, citing lack of application by the debtor, prior rulings, and potential breach of DIP loan terms and prejudice to other creditors.

One hundred and fifteen former Nortel employees brought a motion seeking to impose personal liability on the former directors of Nortel Networks Limited (NNL) and Nortel Networks Corporation (NNC) for unpaid severance payments under section 119 of the Canada Business Corporations Act (CBCA).

The employees argued that the severance payments were akin to retention payments for services performed.

The directors raised defenses including that severance payments are not covered by section 119, they exercised due diligence, and some claimants were employed by a different subsidiary (NNTC).

The court dismissed the motion, finding that severance payments are not for 'services performed' under CBCA s. 119, but rather compensation for loss of employment.

The court also found that the directors had a valid due diligence defense and that the 'true employer' test would have identified NNL as the employer for all employees, despite payroll being handled by NNTC.

The court also noted that releases signed by some employees would have covered the claim.

The applicant transit authority sought court approval of a negotiated settlement in a class proceeding concerning entitlement to proceeds arising from the demutualization of a life insurance company that issued group life insurance policies to employees and retirees.

The settlement provided that approximately 62% of the proceeds would be distributed to eligible employees and retirees and the remainder to the employer, with deductions for distribution and legal costs.

The court applied the established test under the Class Proceedings Act, 1992 for approving class action settlements and considered factors including fairness of allocation, litigation risk, negotiation process, notice to class members, and absence of objections.

The court concluded that the settlement was fair, reasonable, and in the best interests of the class and approved the distribution scheme and related legal and administrative fees.

Ancillary orders were granted permitting sharing of contact information for distribution purposes and sealing the final list of eligible recipients to protect personal information.