Aubrey E. Kauffman

The appellant, holding a perfected general security agreement over the assets of a company in receivership, appealed a motion judge's decision granting priority over three injection molding machines to the unpaid supplier.

The supplier had delivered the machines but retained title pending payment and electrical safety certification, which had not yet been obtained.

The Court of Appeal dismissed the appeal, upholding the motion judge's finding that because the conditions of sale were not met, the debtor had not acquired any rights in the machines to which the appellant's security interest could attach under the Personal Property Security Act.

In a CCAA proceeding regarding Stelco Inc., the Informal Independent Converts' Committee appealed an order denying them a separate class of creditors.

The Court of Appeal granted leave but dismissed the appeal, finding no legal error or error in principle in the motion judge's conclusion that the appellants lacked a different legal or practical interest from other unsecured creditors vis-à-vis the debtor.

The appellant, an informal committee of senior debenture holders, sought leave to appeal orders made by the supervising judge in a CCAA restructuring.

The orders authorized the debtor company to enter into agreements with stakeholders and a finance provider to facilitate a proposed plan of arrangement.

The appellant argued the judge lacked jurisdiction to make orders that entrenched elements of a plan before creditor approval and that the plan was doomed to fail.

The Court of Appeal dismissed the appeal, holding that the supervising judge had broad jurisdiction under s. 11 of the CCAA to move the restructuring process forward, provided the creditors retained their final right to vote on the plan under s. 6.

The appellants appealed a decision approving a receiver's recommended settlement.

They argued the motions judge failed to properly apply the principles from Crown Trust v. Rosenberg.

The Court of Appeal dismissed the appeal, finding the motions judge appropriately applied the Soundair principles, considered the differences between expert reports, and made no palpable and overriding error.

The court-appointed interim receiver brought a motion to lift a stay pending appeal of an order approving the sale of the bankrupt companies' assets.

The appellants opposed the sale.

The Court of Appeal found that the appeal had questionable merit and that delaying the sale of the business as a going concern would cause manifest prejudice.

The motion was allowed, the stay was lifted, and the receiver was authorized to complete the sale.

The appellants appealed a trial judgment that interpreted a share purchase agreement to include an unexpected income tax refund as an 'account receivable' and found them liable for a bankruptcy dividend distribution.

The Court of Appeal allowed the appeal, holding that the agreement was unambiguous and did not contemplate the tax refund as an account receivable.

The Court also found that the bankruptcy dividend had been paid in full and that the plaintiffs failed to prove their claim for additional items.

The action was dismissed with costs.