The Monitor brought a motion within a CCAA proceeding seeking an order directing Stelco to complete a land severance and convey a parcel of land (the Reconveyance Parcel) to LandCo's nominee pursuant to a Reconveyance Agreement.
Stelco opposed, arguing that LandCo missed timelines in the agreement, entitling Stelco to purchase the land instead, and brought a cross-motion.
The dispute arose after Stelco learned the land was to be sold to a developer for a large residential community near its steel plant.
The court found that Stelco breached the Reconveyance Agreement, as the conditions triggering its right to purchase had not occurred.
The court held that LandCo could waive the requirement for environmental consent and ordered specific performance, requiring Stelco to complete the severance and transfer the land.