Emily Franziska Wuschnakowski

The City of Toronto expropriated a property owned by the Multanis.

Dramel Limited and other entities held charges against the property.

Dramel brought a motion to determine its priority rights to a section 25 settlement offer made by the City.

At a Case Management Conference, the Tribunal adjourned Dramel's motion to proceed in writing and issued a Procedural Order to govern the future conduct of the compensation hearing, despite the original owners' ongoing difficulties in retaining legal counsel.

The appellant, an unsecured creditor, appealed a motion judge's order authorizing a pooled distribution of assets under a receivership, which included both individual and corporate debtors.

The appellant objected to sharing corporate assets with creditors of only the individual debtors.

The Court of Appeal upheld the motion judge's decision, finding no error in piercing the corporate veil to pool assets, as the corporate assets were derived from fraudulent transfers by the individual debtors to defeat creditors.

The court also found no procedural unfairness in determining the issue on a motion for directions and upheld the disallowance of certain interest charges claimed by the appellant.