Carlie Fox

This decision concerns the approval of a plan of arrangement under section 192 of the Canada Business Corporations Act for Sherritt International Corporation and 16743714 Canada Inc. The plan involves the exchange and restructuring of certain debt obligations, including Senior Secured Notes and Junior Notes, to stabilize the company’s financial position.

The court reviews the statutory and fairness requirements for approval, considers objections, and ultimately finds the arrangement fair and reasonable, granting the final order.

The plaintiff, Ojohome Canada Ltd. o/a Houseful, sought an interlocutory injunction or mandatory order to restore its access to live feed data from the Toronto Region MLS service provided by TRREB.

The court denied the motion, finding that the plaintiff did not meet the high threshold for a mandatory order and that damages would be an adequate remedy.

The decision discusses the contractual and regulatory context of MLS data access and the requirements for injunctive relief.

Tacora Resources Inc. sought an amended and restated initial order (ARIO) and a solicitation order under the Companies’ Creditors Arrangement Act (CCAA) to facilitate its restructuring, including approval for a $75 million debtor-in-possession (DIP) financing facility from Cargill.

An ad hoc group of senior noteholders (AHG) opposed the Cargill DIP facility, alleging a flawed process and material prejudice, and brought a cross-motion for approval of their own competing DIP proposal.

The court found that Tacora's Board exercised reasonable business judgment in selecting the Cargill DIP facility, which was financially superior and less prejudicial to creditors overall than the AHG's proposal.

The court dismissed the AHG's cross-motion, finding no evidence of improper conduct by Cargill or the Board, and granted Tacora's requested ARIO and Solicitation Order, including approval of the Cargill DIP facility, an extended stay period, a Key Employee Retention Plan (KERP), and a sealing order for KERP details.

The appellants, Limited Partners of a debtor in a bankruptcy proposal, appealed an order for directions regarding the process for an appeal of a proof of claim.

The Court of Appeal dismissed the appeal as premature, finding that the motion judge had not made any final orders regarding the appellants' standing in the anticipated claim appeal, but rather had made directions "subject to the discretion of the judge hearing the appeal." The court held that the possibility of influence or an incorrect underlying conclusion on discretionary standing was not a basis for appeal.

The applicant tenant sought a declaration that it validly renewed its commercial lease for a five-year term.

The respondent landlord argued the renewal was invalid because the tenant was in default of its obligations to pay common area maintenance and realty taxes when it gave notice.

The court found that the parties had deviated from the strict payment terms of the lease for years, and the landlord could not retroactively assert a default without providing notice.

Furthermore, the lease contained a tenant-friendly renewal clause that allowed the tenant to cure any default and renew even after the initial deadline had passed.

The court granted the declaration that the lease was validly renewed.

Following a trial where the plaintiff law firm successfully obtained a permanent injunction preventing the defendant from disseminating defamatory allegations, the court addressed the continuation of a sealing order and costs.

The court held that the sealing order over the general court record must continue to protect a third party, but lifted the sealing order over the reasons for judgment, finding no serious risk to the plaintiff given their complete vindication.

The court awarded the plaintiff substantial indemnity costs of $1,217,365.68 due to the defendant's reprehensible conduct in making unproven allegations of criminal fraud and dishonesty with malice.

The plaintiff law firm brought a motion for an order excluding the public from the trial of its action against the defendant and prohibiting disclosure of information relating to the action.

The plaintiff sought a permanent injunction preventing the defendant from publishing allegedly defamatory statements.

The court dismissed the request for an in camera trial, finding it was not necessary to prevent a serious risk to the proper administration of justice, as the allegations were already in the public domain.

Instead, the court ordered a limited publication ban directed at the defamatory statements and continued an existing sealing order.

In a CCAA proceeding, the Monitor appealed a Claims Officer's decision allowing a landlord's claim for liquidated damages under a lease guarantee.

The Monitor argued the Claims Officer failed to consider a lease provision regarding the sale of the property.

The landlord cross-appealed the Claims Officer's finding that it breached a duty to be forthright by failing to disclose the property's foreclosure.

The Superior Court granted the Monitor's appeal, remitting the quantification issue back to the Claims Officer due to an error of law in contractual interpretation.

The court dismissed the landlord's cross-appeal, affirming that creditors owe a duty of forthrightness in a CCAA claims process.

The applicants, Dr. Bernstein's corporations, moved for judgment against Norma Walton, Ronauld Walton, and their companies for $66.9 million, alleging civil fraud and fraudulent misrepresentation, and sought a declaration that the debt would survive bankruptcy.

The Waltons brought a counter-application for damages and a cross-motion for a trial on the fraud issue.

Christine DeJong Medicine Professional Corporation and Gideon and Irene Levytam also sought relief regarding their investments.

The court found the Waltons liable for civil fraud and fraudulent misrepresentation, awarding the applicants $66.9 million plus interest, and declared the debt non-dischargeable in bankruptcy under s. 178(1)(d) and (e) of the BIA.

The Waltons' counter-application was struck as frivolous and vexatious.

The applicants' claims against Schedule C Companies for knowing assistance and knowing receipt were dismissed.

DeJong was granted constructive trusts over specific Schedule C properties for their investments due to the Waltons' breach of fiduciary duties.