Derek J. Bell

The plaintiffs brought a motion for summary judgment against the defendants for fraud, breach of trust, breach of fiduciary duty, unjust enrichment, and breach of contract arising from a fraudulent investment scheme.

The court found the defendants liable on a joint and several basis, as the uncontested evidence established that the defendants accepted funds for investment but did not invest them as promised, instead providing forged financial statements.

The court awarded damages based on the net principal invested plus compound interest, general damages for investigation costs, and punitive damages.

The applicant, Sino-Forest Corporation, sought an order sanctioning a plan of compromise and reorganization under the CCAA.

The plan was supported by the vast majority of creditors, including noteholders, auditors, and underwriters, but opposed by certain funds.

The court found that the statutory requirements were met, the creditors were properly classified, and the plan, including its third-party releases, was fair and reasonable.

The motion was granted and the plan was sanctioned.

Institutional investors sought an adjournment of a motion to sanction a restructuring plan under the Companies’ Creditors Arrangement Act, arguing that provisions in the proposed plan concerning settlements and releases for third party defendants could improperly affect their ability to pursue claims in related securities class actions.

The court reviewed the plan and concluded that approval of any specific settlement, including a proposed auditor settlement, was not before the court on the sanction motion and would require further court orders and satisfaction of multiple conditions precedent.

The court held that any potential impact on investors’ claims could be addressed in future proceedings where the specific settlements and releases would be considered.

As the objections were premature and the debtor faced time and funding constraints, the request for an adjournment was denied.

The appellants, auditors and underwriters of Sino-Forest Corporation, appealed an order declaring that their claims for contribution and indemnity against Sino-Forest were 'equity claims' under the Companies' Creditors Arrangement Act (CCAA).

The claims arose from proposed shareholder class actions alleging misrepresentation.

The Court of Appeal dismissed the appeal, holding that the definition of 'equity claim' in s. 2(1) of the CCAA focuses on the nature of the claim rather than the identity of the claimant.

The court found that the appellants' claims for contribution and indemnity were clearly connected to the shareholders' equity claims and thus fell within the expansive statutory definition.

In CCAA restructuring proceedings, shareholder class action plaintiffs sought to limit the scope of a stay of proceedings so that certification, leave, and amendment motions in related Ontario and Quebec securities class actions could proceed against auditors, underwriters, and former directors.

The court applied the established test for lifting a CCAA stay, considering relative prejudice, balance of convenience, and the merits.

Given the pending appeal concerning whether shareholder claims constituted “equity claims” under the Companies’ Creditors Arrangement Act and the imminent creditor meeting regarding a proposed plan of arrangement, the court found that maintaining the stay temporarily would avoid prejudice and promote orderly proceedings.

The court held that the balance of convenience favoured maintaining the stay so that the auditors and underwriters could focus on the appeal and restructuring process.

The motion to limit the stay was dismissed without prejudice to renewal after the creditor meeting.

The plaintiff, a former Member of Parliament and cabinet minister, sued the prime minister, his senior advisors, and others for conspiracy, defamation, and other torts following her removal from cabinet and the Conservative Party caucus.

The defendants brought a motion to strike the statement of claim.

The court granted the motion, finding that the decisions to remove the plaintiff from cabinet and caucus were protected by Crown prerogative and parliamentary privilege, respectively, and were therefore not justiciable.

The court also held that communications between the prime minister and his advisors were protected by absolute privilege, and that the Conservative Party of Canada, as an unincorporated association, lacked the capacity to be sued.

The applicants, an atheist father and his daughter, brought human rights applications alleging that the respondent school board's policies regarding the distribution of religious publications in schools discriminated on the basis of creed.

The Ontario Human Rights Commission and the Canadian Civil Liberties Association sought leave to intervene.

The Tribunal granted the Commission leave to intervene and make an opening statement.

The CCLA was granted leave to intervene, but its participation was limited to submissions on how Charter values should inform the interpretation of the Code, as the Tribunal declined to allow the CCLA to introduce new constitutional issues not raised by the applicants.

The Court of Appeal issued a costs endorsement following an appeal in CCAA proceedings.

The appellant, Computershare Trust Company of Canada, was ordered to pay costs of the appeal to the respondent Crystallex International Corporation in the amount of $110,688.00, and to the respondent Tenor Capital Management Company, L.P. and Affiliates in the amount of $80,000.

Both amounts are inclusive of disbursements and HST.

The appellant Noteholders appealed orders approving a bridge loan, a $36 million DIP financing facility, and a Management Incentive Plan (MIP) for the respondent debtor under the CCAA.

The debtor's principal asset was a $3.4 billion arbitration claim against Venezuela.

The Noteholders argued the DIP financing, which could outlast the CCAA protection period and granted the lender a 35% interest in the arbitration proceeds, was effectively an arrangement requiring creditor approval.

The Court of Appeal dismissed the appeal, finding that the supervising judge reasonably exercised his broad discretion under s. 11.2 of the CCAA to approve the financing necessary to pursue the arbitration, and that the financing did not constitute a plan of arrangement.

The appellants succeeded on a limitation issue in a class action appeal and sought costs for the appeal and the motion below.

The Court of Appeal declined to alter the motion judge's order that costs of the motion remain in the cause.

For the appeal, the court recognized the appellants' success but modified the costs award because the appeal raised a novel issue of law and involved access to justice considerations in a class action.

The court awarded costs of the appeal in the cause, fixing them at $20,000 for the Timminco appellants, $20,000 for the Photon Consulting appellants, and $10,000 for the Walsh appellant.

The applicant corporation sought relief under the Companies’ Creditors Arrangement Act including an initial order, a stay of proceedings, approval of a sale process, and authorization of administration and directors’ charges.

The court considered whether the corporation qualified as a debtor company and whether the requested restructuring steps were appropriate in the circumstances of significant financial distress and ongoing investigations.

The court accepted that the corporation was insolvent and that a restructuring under the CCAA was necessary to preserve enterprise value and explore a potential sale of business operations.

The court approved the requested charges, authorized the sale process, and granted ancillary relief including recognition proceedings in foreign jurisdictions.

The plaintiffs sought court approval of a settlement agreement resolving complex litigation and related bankruptcy proceedings arising from the collapse of Lehman Brothers.

The dispute concerned ownership and recovery of investment fund assets held by the prime broker at the time of its insolvency, including securities subject to re-hypothecation and claims advanced in multiple jurisdictions.

The court considered the fairness and reasonableness of the settlement, including its impact on investors and the risks and delays associated with continued litigation and cross-border enforcement.

Relying on principles reflected in the Bankruptcy and Insolvency Act and the court’s jurisdiction under the Courts of Justice Act, the court concluded that the compromise was fair and reasonable.

The court approved the settlement and issued vesting orders in relation to assets conveyed under the agreement.

The Commissioner of Competition sought declaratory and remedial relief under s. 74.01(1)(a) of the Competition Act for a deceptive marketing scheme involving unsolicited faxes and websites designed to mimic a well‑known business directory provider.

The respondents’ materials suggested recipients were updating existing listings while the fine print created binding two‑year contracts for directory services.

The court found the representations materially false or misleading and concluded the scheme deceived thousands of Canadian businesses and organizations.

The court declared the conduct reviewable under the Competition Act, voided the contracts, ordered restitution to affected customers, imposed corrective notice requirements, and issued a ten‑year prohibition order.

Administrative monetary penalties totaling $8 million against corporate respondents and additional penalties against individual respondents were imposed.

The plaintiff commenced a proposed class action alleging secondary market misrepresentations by the defendants.

The statement of claim asserted common law causes of action and indicated an intention to seek leave to assert a statutory cause of action under section 138.3 of the Securities Act.

Facing a potential limitation issue, the plaintiff successfully moved for a declaration that the limitation period was suspended under section 28 of the Class Proceedings Act.

The defendants appealed.

The Court of Appeal allowed the appeal, holding that a statutory cause of action under section 138.3 is not 'asserted' within the meaning of section 28 until leave to proceed has been granted.

The U.K. Pensions Regulator and Pension Protection Fund Trustee appealed an order finding that their service of a Warning Notice breached the stay provisions in the Initial Order under the Companies' Creditors Arrangement Act.

The Court of Appeal dismissed the appeal, agreeing that the service of the Notice was a nullity.

The Court clarified that the order below does not preclude the appellants from seeking to assert a claim in the CCAA process for pension contribution shortfalls.

The appellant, acting as trustee for noteholders, appealed the dismissal of its application against the respondent mining corporation.

The appellant argued that the respondent's failure to obtain foreign environmental permits triggered a 'Project Change of Control' under the trust indentures, and that the respondent improperly sold equipment purchased with note proceeds.

The appellant also sought an oppression remedy under the Canada Business Corporations Act, arguing the respondent was insolvent and its directors should have prioritized creditor interests.

The Court of Appeal dismissed the appeal, finding no breach of the trust indentures and upholding the application judge's conclusion that the directors' business decisions were reasonable and did not constitute oppression, even in the context of financial distress.

The appellants, organizations promoting traditional conceptions of morality, sought leave to intervene as a friend of the court in an application challenging the constitutionality of prostitution provisions in the Criminal Code.

The motion judge dismissed their motion.

On appeal, the Court of Appeal found the motion judge erred, noting the appellants had a real, substantial, and identifiable interest and an important perspective distinct from the parties.

The appeal was allowed and the motion to intervene was granted.

In a complex CCAA restructuring of Stelco Inc., four appeals were brought regarding the distribution of assets among creditors.

The Court of Appeal upheld the motion judge's findings that Senior Debt Holders could enforce subordination and turnover provisions against Noteholders via trust principles, and that post-filing interest was payable.

However, the Court reversed the motion judge on two key issues: it found that a massive IT outsourcing contract was not in the 'ordinary course of business', thereby elevating its assignee to Senior Debt status, and it ruled that the distributed securities must be valued at the 'Plan value' ($5.50 per share) rather than the post-emergence market value.

Sunrise REIT initiated an auction process to sell its assets, requiring interested parties, including Ventas and HCPI, to sign confidentiality and standstill agreements.

Ventas submitted the winning bid, and Sunrise signed a purchase agreement containing a 'fiduciary out' clause allowing it to consider superior unsolicited proposals, but also requiring it to enforce existing standstill agreements.

HCPI subsequently submitted a higher bid.

The Court of Appeal upheld the application judge's ruling that the purchase agreement obliged Sunrise to enforce HCPI's standstill agreement, thereby precluding Sunrise from considering HCPI's bid, as it was not a 'bona fide' proposal due to the breach of the standstill agreement.

The appellants, holders of Convertible Notes of Stelco, appealed an order establishing an expedited claims process to determine inter-creditor subordination claims in a CCAA restructuring.

The appellants argued they were entitled to a full civil trial process.

The Court of Appeal dismissed the appeal, finding that the CCAA plan explicitly contemplated a timely process to determine entitlements to the turnover proceeds, and the supervising judge's discretionary scheduling order was entitled to deference.