Ari Nathan Kaplan

This decision sanctions the CCAA Plans of Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, JTI-Macdonald Corp., and Rothmans, Benson & Hedges Inc., effecting a global settlement of all tobacco-related claims in Canada.

The court reviews the structure, allocation, and fairness of the plans, including the creation of a $1 billion Cy-près Foundation, and addresses objections from social stakeholders.

The court finds the plans fair, reasonable, and in the public interest, and grants the requested relief, including third-party releases and the appointment of plan administrators.

This supplementary endorsement addresses a request from JTI-Macdonald Corp. regarding the adequacy of notice elements in the Claims Procedure Order within the ongoing Companies' Creditors Arrangement Act (CCAA) proceedings.

The court confirmed its satisfaction that the notice elements in the Claims Procedure Orders are reasonable in the circumstances, addressing an oversight from previous submissions.

The Superior Court of Justice addressed multiple motions within the complex Companies’ Creditors Arrangement Act (CCAA) proceedings of JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The court granted a stay extension until January 31, 2025, and approved Meeting Orders and Claims Procedure Orders.

These orders facilitate the advancement of comprehensive Plans of Arrangement, developed by the court-appointed Mediator and Monitors, aiming for a Pan-Canadian global settlement of tobacco claims totaling $32.5 billion.

The court found the plans were not "doomed to fail" despite outstanding issues regarding financial allocation among the Tobacco Companies and the creditor status of JTI-Macdonald TM Corp.

This decision concerns the approval of a class action settlement and class counsel's fees related to pension indexing benefits for members of the Brewer’s Retail, Inc. Pension Plan.

The dispute revolved around whether indexing constituted a protected pension benefit under the Pension Benefits Act.

The settlement provides for a 0.9% annual adjustment to pension benefits for pre-2010 service, with a specific fund allocated for certain class members requiring a claims process.

The court found the settlement to be fair, reasonable, and in the best interests of the class, noting it was the result of arm's-length negotiations and avoided the "all or nothing" risk of litigation.

Class counsel's fees and disbursements were also approved as fair and reasonable, representing a significant reduction from their dockets and a modest percentage of the total settlement value.

IBM Canada Limited sought rectification of its pension plan to correct drafting errors made in a 2014 restatement, which inadvertently altered pension benefit accrual rules for employees on disability leave.

The errors would have either increased benefits for some members (DB and Non-Contributory DC) or decreased them for others (DC Match).

IBM consistently administered the plan according to its original, intended terms.

The representative respondents, representing affected members, consented to the rectification as part of a settlement agreement.

The court granted the rectification, finding the errors unintended and that it would be unjust to deny the order, applying the test for rectification of unilateral instruments.

The Financial Services Regulatory Authority of Ontario (FSRA) appealed a Superior Court decision that dismissed its motion to stay a class proceeding initiated by Brewers Retail Inc. and a committee of pension plan members.

The class proceeding sought court approval of a comprehensive settlement regarding pension indexing issues, including amendments to the pension plan and trust, and compensation for known and unknown plan members.

FSRA argued that the Financial Services Tribunal (FST) had exclusive jurisdiction over these matters under the Pension Benefits Act (PBA) and the Financial Services Tribunal Act, 2017 (FSTA).

The Court of Appeal upheld the motion judge's finding that the Superior Court had concurrent jurisdiction, noting that neither the FSTA nor the PBA contained clear and unequivocal language ousting the court's inherent equitable jurisdiction to approve settlements and vary trusts.

The court affirmed that the class proceeding was the preferable procedure, as the FST lacked the power to approve the settlement or vary the pension trust, and the class action provided the necessary finality for all affected plan members.

IBM Canada sought rectification of its retirement plan due to drafting errors affecting 210 current and former employees.

IBM brought a motion for a representation order to appoint Dario Ceci and Jacinthe Ratelle as representative respondents for the affected members, based on a settlement agreement.

The Financial Services Regulatory Authority of Ontario (FSRA) did not oppose the motion or the underlying rectification.

The court granted the representation order, finding it necessary and desirable under Rule 10.01(1)(f), and confirmed the commonality of interest among pension plan members for class representation.

This is a costs endorsement following a judgment certifying a class action settlement.

The Financial Services Regulatory Authority (FSRA) intervened to oppose the certification and sought a stay, but was entirely unsuccessful on the merits.

The court considered costs submissions from Brewers Retail Inc. (Applicant), the Committee representing the proposed class of pensioners (Respondents), and FSRA (Intervenor).

The court denied FSRA's request for costs, finding its intervention caused additional costs for other parties.

The court awarded Brewers Retail Inc. $159,000 and the Committee $51,000, both inclusive of disbursements and HST, to be paid by FSRA, finding their efforts necessary and reasonable given FSRA's strenuous opposition.

Her Majesty the Queen in right of Ontario sought to lift a stay on its $330 billion health care cost recovery action against three tobacco companies (JTI-Macdonald Corp., Imperial Tobacco, Rothmans, Benson & Hedges Inc.) and eleven co-defendants, which was imposed under CCAA proceedings.

Ontario proposed to temporarily stay the effects of any judgment.

The court dismissed the motion, emphasizing the need to preserve the status quo in CCAA proceedings to facilitate a global resolution of significant claims.

Allowing Ontario's action to proceed would alter the level playing field, distract from restructuring efforts, and impose significant costs, prejudicing other stakeholders.