Brett Gavin Harrison

The plaintiff appealed the trial judge's dismissal of its fraudulent conveyance action against the debtor's wife on a non-suit motion.

The debtor cross-appealed the trial judge's decision granting judgment on his personal guarantee without allowing him to make closing arguments.

The Court of Appeal dismissed both appeals.

While the trial judge erred in denying the debtor the opportunity to make closing arguments, this did not amount to a miscarriage of justice.

Furthermore, although the trial judge applied the wrong test on the non-suit motion by weighing competing inferences rather than assessing if a prima facie case was made, the trial judge correctly concluded on the merits that the plaintiff failed to establish fraudulent intent.

The Court of Appeal issued an addendum to correct an error in paragraph 11 of its reasons for judgment released on November 17, 2005.

The court amended the reasons to replace the reference to 'Subordinated Debenture Holders' with 'Senior Debt Holders' in the first two sentences of the paragraph.

The appellants, holders of Convertible Notes of Stelco, appealed an order establishing an expedited claims process to determine inter-creditor subordination claims in a CCAA restructuring.

The appellants argued they were entitled to a full civil trial process.

The Court of Appeal dismissed the appeal, finding that the CCAA plan explicitly contemplated a timely process to determine entitlements to the turnover proceeds, and the supervising judge's discretionary scheduling order was entitled to deference.

In a CCAA restructuring of Stelco Inc., the appellants, representing subordinated debenture holders, sought to be classified as a separate class of creditors for voting purposes on the proposed plan.

They argued their interests conflicted with senior debt holders due to a turnover payment provision requiring them to remit distributions to senior debt holders until the senior debt was paid in full.

The supervising judge dismissed the motion, finding no material distinction in their legal rights vis-à-vis the debtor company.

The Court of Appeal granted leave but dismissed the appeal, affirming that creditor classification under the CCAA is determined by the creditors' legal rights in relation to the debtor company, not their rights as creditors in relation to each other.

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 appealed a judgment finding no case for equitable set-off and refusing a stay of execution.

The Court of Appeal dismissed the appeal, holding that although the motion judge erred in finding no basis for piercing the corporate veil, he correctly concluded there was no case for equitable set-off because the debt was incurred to a different company prior to a merger.

The court also upheld the refusal to grant a stay of execution due to the lack of connection between the claims.

The appellant appealed a motion judge's decision that its $4 million unliquidated damages claim for defective bottles did not qualify as a 'CCAA claim' under an April 3, 2002 Order.

The Court of Appeal dismissed the appeal, finding the motion judge's interpretation of his own order was reasonable and deserving of deference.

The Administration Fund was intended to protect suppliers who extended credit during the stay period, not to establish a preference for unliquidated damages claims.

The appellants, a bank and its assignee, appealed a trial judgment finding they improperly used the respondent developer's confidential business information during the assignment of a defaulted loan, causing a lost opportunity.

The Court of Appeal allowed the appeal, holding that the bank had an unqualified right to assign the debt.

Furthermore, the Court found that the trial judge erred in awarding damages based on a 'lost opportunity' theory that was neither pleaded nor supported by the evidence.

The cross-appeal by the respondent was dismissed, and the action against the appellants was dismissed in its entirety.