Alex Fernet Brochu

Travelers Insurance Company of Canada appealed the dismissal of part of its subrogated claim for payment from proceeds of crime forfeited to the Crown.

The core issue was whether Travelers had an interest in the forfeited property by way of a constructive trust due to the Crown's erroneous failure to include Travelers' subrogated claim (Xpertdoc) in the initial restitution order.

The Court of Appeal found that the Crown's erroneous omissions, combined with the near certainty that restitution would have been made, amounted to unjust enrichment, supporting a constructive trust in Travelers' favour.

The appeal was allowed, and Travelers was granted relief from forfeiture for the full amount of the Xpertdoc claim.

This decision addresses an application for oppression remedies under the Canada Business Corporations Act, brought by majority shareholders against minority shareholders, alleging fraud and prejudicial conduct related to a property acquisition.

The applicants sought declarations of wrongdoing, removal of directors, and cancellation of shares.

The court found material facts in dispute, including the applicants' knowledge of a "finder's fee" or "flip" profit, and serious allegations of threats.

Given the complexity, credibility issues, and the significant value of the shares at stake, the court converted the application into an action for a full trial with viva voce evidence, reserving costs to the trial judge.

The SMA 2 Unitholders sought a declaration that substantive consolidation does not apply to Bridging SMA 2 LP and approval for a second interim distribution.

The Receiver and Unitholder Representative Counsel opposed, arguing the motion was premature as various distribution issues, including the full economic impact of consolidation, remained unresolved.

The court dismissed the motion, deferring to the Receiver's position that a determination on substantive consolidation and further distributions was premature given the incomplete factual record and outstanding distribution issues.

The plaintiff, a distributor of lighting retrofit kits, sued the defendant local distribution company for over $20 million in damages after its business failed.

The plaintiff alleged that the defendant negligently delayed and suspended approvals for customer rebates under a provincial energy conservation program, raising unfounded safety concerns.

The court dismissed the action, finding that the defendant owed no duty of care to the plaintiff, as the rebate program was exclusively for the benefit of customers.

Furthermore, the court found that the defendant's safety concerns were legitimate, the processing times were not unreasonable, and the plaintiff's financial collapse was caused by internal disputes, loss of inventory, and withdrawal of bank financing rather than the defendant's actions.

Claims for breach of contract, tortious interference, and misfeasance in public office were also dismissed.

The Trustee in Bankruptcy brought a motion for the payout of its 50% share of proceeds from the sale of a property, which had been vested in the Trustee following a finding of fraudulent conveyance.

The bankrupt's spouse brought a cross-motion claiming deductions from the Trustee's share for carrying costs, improvements, and a line of credit debt.

The court granted the Trustee's motion and dismissed the cross-motion, finding that the parties' prior agreement did not provide for such deductions, the expenses did not increase the property's capital value, and the equitable claims were barred by cause of action estoppel.

The Court of Appeal for Ontario dismissed an appeal from a summary judgment that set aside two transactions by a bankrupt: the transfer of his 50% interest in his residence to his wife as an undervalue transfer and fraudulent conveyance, and the transfer of shares in a corporation to a non-arms length creditor as an improper preference.

The appellants argued the claims were time-barred under the Limitations Act, 2002, and constituted an abuse of process.

The Court of Appeal upheld the motion judge's findings, confirming that the limitation period for the Trustee's claims began upon the Trustee's appointment and that the amended statement of claim did not introduce a new cause of action.

The court also rejected the abuse of process argument as speculative.

A cross-appeal on costs by the Trustee, seeking substantial indemnity, was also dismissed, with the court deferring to the motion judge's assessment of partial indemnity costs.

Following a successful summary judgment motion setting aside transfers at undervalue, the Trustee in Bankruptcy sought substantial indemnity costs, including pre-litigation costs, and a vesting order.

The court awarded partial indemnity costs, declining to award pre-litigation costs or substantial indemnity costs as the defendants' conduct was not reprehensible.

The court also approved the inclusion of a vesting order in the judgment, finding it to be a natural corollary to the order setting aside the transfers under the Bankruptcy and Insolvency Act.

This endorsement from a case conference outlines a revised schedule for a class action proceeding.

The previous schedule for a certification motion was disrupted, necessitating a motion to amend the Statement of Claim.

The court approved a new timeline, setting dates for the service of motion records, cross-examinations, factum exchanges, and hearings for both the amendment motion (September 10, 2020) and the certification motion (November 26, 2020).