Cliff Prophet

The appeal concerns who is liable for outstanding municipal taxes in a receiver's sale of assets with an approval and vesting order (AVO).

The motion judge found the purchaser liable because the taxes were not yet due at closing.

The Court of Appeal reversed, holding that under s. 307(3) of the Municipal Act, liability for the taxes arose on January 1 of the relevant taxation years, prior to closing.

Therefore, the liability remained with the vendor (the receiver) and was vested out of the purchased assets by the AVO.

Morrocanoil, Inc. brought a motion seeking leave to supplement the evidentiary record in its appeal from the disallowance of its proof of claim in the insolvency proceedings of Conforti Holdings Limited (CHL).

The motion concerned the inclusion of "Confidential Documents" (depositions) that were referenced in Morrocanoil's proof of claim but not fully provided to the Proposal Trustee due to a New Jersey confidentiality order.

While Morrocanoil argued the documents were already part of the record, CHL disagreed.

The court found that excerpts had been provided by both parties, but the full extent was unclear.

The motion was adjourned to allow the parties to further review the record, determine if additional excerpts were needed, and ascertain if relief from the New Jersey court was required before providing the confidential documents.