André Claude

Laurentian University brought an unopposed motion within its CCAA proceedings for an order extending the stay period to September 30, 2022, and an order approving a Pension Participation Agreement with the University of Sudbury.

The court found that the applicant had acted in good faith and with due diligence, justifying the stay extension.

The court also approved the pension agreement, finding it to be a fair and reasonable settlement that provided substantial benefits to stakeholders and was consistent with the purpose of the CCAA.

In the context of Laurentian University's CCAA proceedings, a former student (BR) and the University of Sudbury sought to lift the stay of proceedings to pursue civil litigation regarding historical sexual assault allegations.

BR argued that her claim was exempt from the CCAA claims process under s. 19(2)(b)(i), which exempts awards of damages for sexual assault.

The court dismissed the motions, applying the Supreme Court's reasoning in Montreal (City) v. Deloitte Restructuring Inc. to hold that the s. 19(2) exception must be interpreted narrowly and only applies once an award of damages has actually been established.

Consequently, the claims must be determined within the CCAA Claims Process.

The garnishee brought a motion to reinstate its appeal of an associate judge's order, which had been struck by the registrar for failure to file a motion confirmation form.

The creditor brought a cross-motion to strike the garnishee's affidavit and for judgment.

The court found that the Rules of Civil Procedure do not clearly require a motion confirmation form for an appeal of an interlocutory order of an associate judge, and the creditor should have consented to the reinstatement.

The court granted the motion to reinstate the appeal and dismissed the creditor's motion.

In the CCAA proceedings of Laurentian University, the applicant sought an order regarding a Compensation Claims Process.

On consent, the court deferred relief related to Third Party RHBP Claims to a subsequent hearing, ordering that the deadlines and procedures in the Compensation Claims Process Order would not apply to those claims at this time.

The remaining unopposed relief was granted.

Laurentian University brought a motion within its CCAA proceedings seeking the appointment of a Chief Redevelopment Officer, an increase in the fee cap for the Board of Governors' independent counsel, and approval of a claims process.

The court approved the appointment of the CRO and the fee increase.

Regarding the claims process, TD Bank proposed amendments to require consultation on claims over $5 million.

Balancing the need for efficiency with creditor involvement, the court modified the claims process to establish an 'Inspector Group' to authorize the compromise of material claims, drawing on principles from the Bankruptcy and Insolvency Act.

The applicant, Laurentian University, brought a motion within its CCAA proceedings to extend the stay of proceedings, approve an amendment to its DIP facility increasing the available funds by $10 million, and approve settlement agreements with its faculty association, staff union, and Huntington University.

The court found that the applicant had acted in good faith and with due diligence, making significant progress in its restructuring.

Despite opposition from Thorneloe University and the University of Sudbury regarding the DIP amendment, the court approved the requested relief, finding the DIP conditions reasonable and the extension necessary for the applicant's continued operations and restructuring efforts.

The University of Sudbury brought a motion to set aside a Notice of Disclaimer issued by Laurentian University under section 32 of the CCAA.

Laurentian University sought to disclaim the Federation Agreements with its federated universities as part of its financial restructuring.

The moving party argued the disclaimer was issued in bad faith, would cause significant financial hardship, and would negatively impact French language rights.

The court dismissed the motion, finding no bad faith, insufficient evidence of significant financial hardship to outweigh the restructuring needs, and noting that the moving party had already resolved to become an independent francophone university.

The court concluded the disclaimer was necessary for Laurentian University to present a viable plan to its creditors and avoid bankruptcy.

Two equal shareholder brothers in a family construction group became deadlocked after one withdrew from active management due to illness and sought to realize the value of his shares.

The court found a fundamental and irreparable deadlock in the management of the corporations under the oppression and winding‑up provisions of corporate statutes.

Competing valuation reports were rejected in part, with the court determining fair value by adjusting one report and rejecting assumptions that the operating company lacked viability.

The court ordered a forced buy‑out requiring the remaining shareholder to purchase the other’s shares at a court‑determined fair value.

Payment terms were structured to balance the retiring shareholder’s need for compensation with the company’s operational viability.

A corporate shareholder and director sought leave to be added as a party to litigation involving a company and its bank concerning enforcement of a banking resolution adopted at an annual general meeting.

The court considered Rule 13.01 of the Rules of Civil Procedure and found the proposed party had a direct personal and corporate interest in the proceeding and could be adversely affected by the outcome.

The court determined that the annual meeting lacked quorum and that the resulting corporate resolutions, including a banking resolution altering signing authority, were invalid.

The court dismissed the company’s injunction motion seeking to enforce the resolution and granted relief requiring disclosure of financial information to the added party under oppression principles in the Canada Business Corporations Act.