David R. Elliott

The decision concerns a motion by creditors Jennifer Look-Hong and Geoffrey MacKay in the bankruptcy of The Aggressive Good Inc. The motion sought, among other things, to challenge the eligibility of Christopher Falconi to act as an inspector and to have his votes at the first meeting of creditors revoked.

The court found that the Trustee made a palpable and overriding error in determining the date Mr. Falconi ceased to be a director, and that Mr. Falconi was not dealing at arm’s length with the debtor within the year prior to bankruptcy.

The court also found that Mr. Falconi was ineligible to act as an inspector due to his involvement in contested actions against the estate.

The motion was granted, and the order was signed as requested, with a new meeting of creditors to be held.

Campbell Drug Stores Ltd. brought a motion to redesignate the Crown's discovery representative, arguing the initially designated representative lacked personal knowledge of key events related to an alleged second contract for surgical gowns.

The Attorney General of Canada opposed, asserting the Crown's primary role in designation and that the representative was not "demonstrably unsatisfactory." The court granted Campbell's motion, redesignating Jeffrey Smallwood as the Crown's representative.

The court found that a fair and meaningful discovery required examining an individual with personal knowledge, especially where credibility was central to the dispute over contract formation, and rejected the argument that the motion was premature.

The plaintiff, Dymon Storage Corporation, brought a motion for an interlocutory injunction to restrain the defendants, including its former Chief Planner and its former architects, from working for a competitor and from misusing confidential information.

The defendant Edwards brought a cross-motion to strike or stay the claim against her in favour of arbitration.

The court dismissed the non-competition injunction, finding Edwards' non-competition covenant unreasonably broad and unenforceable, and finding no evidence of an oral non-competition agreement with the architect defendants.

The court partially granted the confidentiality injunction, ordering the architect defendants to surrender documents relating to an epoxy floor system and certain architectural drawings, but otherwise found the plaintiff failed to distinguish between confidential information and general know-how.

The court stayed the claim against Edwards in favour of arbitration pursuant to her employment agreement.

The plaintiff brought a motion to compel the production of data, correspondence, and reports from two environmental consulting firms retained by the defendants.

The defendants claimed litigation privilege over the documents.

The court found that litigation was not the dominant purpose for the creation of the documents, as the parties were still working cooperatively to solve an environmental remediation issue at the time.

Furthermore, the court held that even if privilege existed, the defendants implicitly waived it by directing the plaintiff to share information directly with the consultants without advising that the process was privileged, and by claiming the consultants' costs in their counterclaim.

The motion for production was granted.

The plaintiff, Richcraft Homes Ltd., initiated an action against several defendants, including Urbandale Corporation, Urbandale Construction Limited, and Lawrence Weinstein, seeking declaratory relief for oppressive conduct, breach of contract, and punitive damages related to land development projects.

The defendants brought motions under Rule 21 to strike Richcraft's claims, arguing they failed to plead material facts supporting a reasonable prospect of success.

The court granted the motions, finding that Richcraft did not demonstrate compensable injury or a likelihood of threatened oppressive conduct, nor an independent actionable wrong for punitive damages.

Leave to amend was denied due to the absence of proposed amendments or supporting evidence.