The respondent entered into a Tax Refund Agreement with Grant Forest Products Inc. (GFPI) to purchase income tax refunds.
GFPI failed to deliver the required transfer document before seeking CCAA protection.
The motion judge applied the equitable maxim that equity considers done what ought to be done, declaring the transfer had taken place.
The appellant, representing secured lenders, appealed.
The Court of Appeal dismissed the appeal, holding that the motion judge correctly applied the maxim to cure GFPI's breach and that doing so did not inequitably rewrite the contract or create an unlawful preference.
