The Receiver brought a motion to distribute funds to the secured creditor, RBC, and to approve its fees.
The Union opposed, claiming a super-priority for unpaid pension and other benefits under the BIA over all companies in the receivership, and sought to claw back the Receiver's fees.
The court held that the CRA's deemed trust for unremitted source deductions under the Income Tax Act takes priority over the Union's BIA super-priority claims.
The court also rejected the Union's attempt to extend its claims to other corporate entities in the group, finding no evidence they were related employers or participated in the pension plan.
The Union's attempt to claw back the Receiver's fees was dismissed as an impermissible collateral attack.
