Domenico Magisano

In the context of CCAA proceedings for a land lease community, the senior secured lender brought a motion to appoint a receiver.

The CCAA stay of proceedings was expiring, DIP financing was exhausted, and no viable restructuring plan or purchaser had emerged.

The court found it just and convenient to appoint a receiver to stabilize the community, ensure continuation of essential water and sewage services, and facilitate a credit bid by the secured lender.

A separate unopposed motion to lift the stay to allow repossession of unused modular homes was also granted.

The applicant, a secured creditor for an equipment loan, sought the appointment of a receiver over the assets of two related debtor companies: one operating a cannabis facility and the other owning the real estate.

The mortgagees opposed the appointment over the real estate, arguing the applicant had no security interest in it and preferring to sell under power of sale.

The court found it just and convenient under section 101 of the Courts of Justice Act to appoint a receiver over all assets of both entities to prevent fragmented sales, maximize recovery, and maintain a court-supervised process, appointing the receiver nominated by the mortgagees.

The Bank of Montreal applied for a receiver over a group of fitness clubs (the Crunch Group) following defaults on credit facilities.

The parties reached an agreement where the debtors' nominee would purchase the debt and security.

The Bank accepted the offer but subsequently refused to provide a fully executed copy of the agreement, causing the purchaser to lose financing and fail to close on the scheduled date.

The court found the Bank's actions, including abruptly closing the debtors' bank accounts and unreasonably refusing to deliver the executed agreement, breached the duty of good faith.

The court ordered the Bank to close the transaction.

The applicant brought a motion to enforce personal guarantees executed by the respondents, a husband and wife who were directors of the debtor corporation.

The husband did not oppose the motion.

The wife argued she was released from her guarantee due to an undisclosed material change in the principal amount of the indebtedness, lack of independent legal advice, and that the applicant had released her through its conduct during restructuring negotiations.

The court found that the guarantee explicitly allowed for changes in the amount of obligations, the wife was a sophisticated business owner who did not require independent legal advice, and the applicant had not provided an express written waiver as required by the guarantee.

The motion was granted and both respondents were found liable.

The appellant, acting as estate trustee for the late Sophia De Jonge, appealed the disallowance of a property claim by the bankruptcy trustee of the estate of Jeffrey Wilson.

Jeffrey, who was the executor of Sophia's estate, had transferred real property to himself without satisfying a significant tax liability owed by Sophia's estate.

Jeffrey subsequently died bankrupt.

The court found that Jeffrey breached his fiduciary duty as executor by failing to pay the estate's debts before distributing assets to himself.

The court imposed a constructive trust over the real property in favour of Sophia's estate to remedy the unjust enrichment of Jeffrey's bankrupt estate, allowing the appellant to trace the beneficial interest into the net sale proceeds.

The plaintiff brought a motion to stay the defendant's motion to set aside a default judgment until the defendant paid outstanding costs orders and posted security for costs.

The defendant had made an assignment in bankruptcy, staying the enforcement of pre-bankruptcy costs orders.

The only remaining costs order, made by a registrar in bankruptcy, was under appeal.

The court held that the appeal automatically stayed the registrar's costs order under Rule 63.01 of the Rules of Civil Procedure.

As no costs were currently payable, the plaintiff's motion for a stay and security for costs was dismissed.