Craig Gilchrist

This class action, alleging employee misclassification and breaches of provincial employment standards, settled for $2.4 million after almost eight years of litigation.

The court approved the settlement amount, class counsel's legal fees, payment to the Class Proceedings Fund, and the distribution method.

The representative plaintiff's requested honorarium of $20,000 was reduced to $8,000, as his involvement, while excellent, was not deemed "truly extraordinary" but did involve some personal and financial hardship.

The class period was also extended for settlement purposes.

The defendants (Underwriters) brought a motion to dismiss the class proceeding for delay under section 29.1 of the Class Proceedings Act.

As a preliminary issue, the court admitted emails between counsel, finding that any common interest privilege was waived by the defendants bringing the delay motion.

On the main issue, the court declined to follow previous strict interpretations of section 29.1.

The court held that its directions at an initial case conference, which required the plaintiffs to take specific steps as soon as practicable, effectively established a timetable under section 29.1(c).

The motion to dismiss was dismissed.

The moving parties (original respondents) sought a stay of execution of judgments totalling over $33 million, pending their application for leave to appeal to the Supreme Court of Canada.

The judgments were for transfers at undervalue under the BIA and CCAA.

The court applied the three-part test for a stay (serious issue, irreparable harm, balance of convenience).

The motion was dismissed because the moving parties failed to demonstrate irreparable harm, especially given the responding parties' undertaking not to distribute seized assets, and because no security was offered for the judgment.

The Monitor of Bondfield Construction Company Limited and the Trustee in Bankruptcy of Forma-Con Construction brought applications under s. 96 of the Bankruptcy and Insolvency Act to recover tens of millions of dollars transferred out of the debtor companies through a false invoicing scheme and an alleged fund cycling scheme.

The court found that the payments made under the false invoicing scheme were transfers at undervalue made with the intent to defraud, defeat, or delay creditors, and held the participating respondents jointly and severally liable.

The court declined to apply the strict corporate attribution doctrine from Canadian Dredge, instead imputing the directing mind's fraudulent intent to the corporate debtors to fulfill the remedial purpose of s. 96.

The Monitor's claim regarding the fund cycling scheme was dismissed for lack of evidence that the transfers lacked consideration.