Bryan D. McLeese

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 endorsement concerns three tobacco companies (JTI-MacDonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc.) operating under the Companies’ Creditors Arrangement Act (CCAA).

Each applicant sought an extension of their stay period until September 30, 2024, to continue formulating plans of arrangement.

Imperial also requested authorization to terminate a retirement plan and post security for a vaping product license.

RBH sought a procedural amendment for employee grievances.

The court, finding no opposition and satisfied with the applicants' good faith, diligence, and sufficient resources, granted all requested relief, noting significant progress in ongoing mediation.

This endorsement concerns the Companies' Creditors Arrangement Act (CCAA) proceedings for JTI-MacDonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The court granted an unopposed motion to extend the stay period until March 29, 2024.

Recognizing the complexity and the four-and-a-half-year duration of negotiations, the court directed the three court-appointed Monitors, in conjunction with the court-appointed Mediator, to collaborate and develop comprehensive Plans of Compromise or Arrangement.

The objective is to finalize plans that are fair and reasonable to all applicants and creditors, moving from observable activity to meaningful action.

The Court of Appeal heard motions to quash an appeal from a trial judge's order approving a sale process for a family business.

The court found the approval order to be interlocutory, serving as a mechanism to implement remedies from the trial judgment, and thus not determining substantive issues.

The correct appeal route for such an order is to the Divisional Court with leave.

Consequently, the motions to quash the appeal were allowed, and the appellants were granted an extension to seek leave to appeal to the Divisional Court.

The defendants brought a motion for an order requiring the corporate plaintiff to post security for costs under Rule 56.01(1)(d) of the Rules of Civil Procedure.

The plaintiff conceded the defendants met their initial onus but argued it had sufficient assets in Ontario to pay costs.

The court found the plaintiff's evidence of recent profits insufficient to prove it had exigible assets, noting its history of deficits and lack of hard assets.

The court granted the motion and ordered the plaintiff to post $50,000 in security for costs.

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.

The defendants, KPMG, Canaccord Genuity Corp., and Cassels Brock & Blackwell LLP, brought motions for summary judgment to dismiss actions initiated by 1511419 Ontario Inc. (formerly The Cash Store Financial Services Inc.) on the grounds that the claims were statute-barred by the two-year limitation period.

The actions related to professional services provided concerning a January 2012 loan purchase and note offering.

The court dismissed the motions, finding that there were genuine issues requiring a trial regarding the discoverability of the claims, given the complex factual pattern, allegations of professional negligence, and the limited evidentiary record presented.

The plaintiff, Amos Tayts, brought a motion for leave to amend his amended statement of claim.

The defendants opposed specific proposed amendments, categorizing them into claims for breach of 'Zavet Group Terms' and breach of trust after the limitation period, pleadings of evidence, and withdrawal of an admission.

The court granted leave for all proposed amendments, finding that they did not introduce new causes of action after the limitation period, were sufficient for pleading purposes, and constituted necessary particulars rather than mere evidence.

The court reserved the issue of costs thrown away to the trial judge or summary judgment judge, but fixed the costs of the motion at $10,000.00 payable by the defendants to the plaintiff.

The plaintiffs brought a motion for directions regarding the assessment of damages following an appeal.

The Court of Appeal had remitted the case for assessment of damages for deceit/fraudulent misrepresentation, setting a base amount and requiring deduction of profits from collateral exploitation.

The moving parties argued for a broader basis of damages (contractual) and a higher initial amount, which the court rejected, affirming the Court of Appeal's specific instructions.

The court provided directions on further examinations for discovery, restricting the examination of one defendant and limiting the plaintiffs' examination, and on the admissibility of evidence regarding profits.

An appeal from a trial judgment concerning fraudulent misrepresentation and deceit.

The respondents invested over $1 million in a company controlled by the appellant Gardiner, who misrepresented that the company owned and controlled valuable intellectual property (patents, trademarks) when in fact Gardiner personally maintained control.

The trial judge found Gardiner liable for deceit and awarded damages of $2.2 million.

On appeal, the court upheld the finding of deceit against Gardiner but reversed the finding against Armstrong (his wife), reduced the damages award to $1.25 million plus prejudgment interest, and remitted the matter for an accounting of profits earned during the respondents' operation of the business.

The plaintiffs were successful at trial, receiving an award of over $2.2 million USD based on findings of active misrepresentations and material non-disclosures by the defendants.

The plaintiffs sought full indemnity costs of $960,432.26, while the defendants argued for substantial indemnity costs of $500,000.

The court found that the defendants' continued deceit during the litigation and trial constituted reprehensible conduct justifying an extraordinary award.

The court awarded the plaintiffs full indemnity costs in the fixed amount of $960,432.26.

Following dismissal of a civil action against a casino operator arising from a fraudster gambling stolen funds, the defendant sought partial indemnity costs of the action.

The plaintiffs argued the case raised a novel legal issue and that awarding costs would unfairly compound the losses already suffered through the fraud.

The court considered the access to justice principles discussed in Boucher v. Public Accountants.

In the circumstances, the court exercised its discretion to decline awarding costs.

No costs were ordered despite the defendant’s success in the underlying action.