Denise Louise Bambrough

The applicants, QM GP Inc. and Highpoint Environmental Services Inc., sought an initial order under the Companies' Creditors Arrangement Act and a lien regularization order.

The applicants sought protection to address acute liquidity crisis, interim financing, and relief to stabilize operations.

The court granted the initial order with certain modifications, approving interim debtor-in-possession financing, appointment of a monitor, administration and directors' charges, and a lien regularization order.

The court also granted a temporary stay on performance bond calls and certain indemnity obligations, with the Kingsdale Letter of Credit issue deferred to the comeback hearing.

Zurich Insurance Company Ltd. moved for a declaration that an Assignment Agreement between Mometal Structures Inc. and 9357-1578 Quebec Inc. was null and void, and for dismissal of three related actions as an abuse of process.

The court found that the Assignment Agreement was not precluded by the subcontract, was not a bare assignment of a cause of action, and that 9357 was not required to immediately disclose the Assignment Agreement.

Zurich's motion was dismissed.

Following the granting of summary judgment dismissing libel actions against certain defendants, the court reconsidered the appropriate costs award.

The defendants argued that an early offer to settle should justify full or substantial indemnity costs after the plaintiffs refused the offer and ultimately lost on summary judgment.

The court held that the offer did not trigger Rule 49 cost consequences because it expired before the hearing, but it could still be considered under the court’s discretion under s. 131 of the Courts of Justice Act and Rule 57.01.

The court found no reprehensible or unreasonable conduct warranting full or substantial indemnity costs but concluded the early offer should have prompted a careful reassessment of the claim.

The costs award was therefore increased from $25,000 to $35,000.

Following the dismissal of defendants’ summary judgment motions and related motions to set aside an Anton Piller order, the court addressed the issue of costs.

The defendants had argued the plaintiff’s action was barred by limitation periods under s. 18(5) of the Radiocommunication Act and the Ontario Limitations Act and sought dismissal on summary judgment.

The court held that the motions were unreasonable given the extensive factual disputes, credibility issues, and evidentiary record requiring trial under the “full appreciation test” articulated in Combined Air Mechanical Services Inc. v. Flesch.

The defendants also unsuccessfully sought to challenge the Anton Piller order.

Costs were therefore awarded to the plaintiff on a substantial‑indemnity basis.

The defendants brought motions to set aside an Anton Piller order and to exclude evidence obtained under it, and also sought summary judgment dismissing the action on limitation grounds.

The action alleged an unauthorized SMATV scheme distributing encrypted satellite television programming to hundreds of tenants using residential subscriber accounts, contrary to the Radiocommunication Act, contract, and tort principles.

The court held that the plaintiff established a strong prima facie case and that the Anton Piller order was properly granted, finding no failure of full and frank disclosure.

The court also found that complex factual disputes, credibility issues, and allegations of fraudulent concealment prevented determination of limitation defences on summary judgment.

Both the motions to set aside the Anton Piller order and the motions for summary judgment were dismissed.