Fred L. Myers

The interim receiver of a bankrupt company sought to distribute funds from operating assets to a secured creditor.

The pension plan administrator opposed, claiming priority under a statutory lien for unpaid pension contributions pursuant to s. 57(5) of the Pension Benefits Act.

The Ministry of the Environment also opposed, arguing funds should be retained for environmental remediation.

The Court of Appeal dismissed both appeals, holding that the pension administrator is not a secured creditor under the Bankruptcy and Insolvency Act because the unpaid contributions are not a debt due to the administrator.

The Court also held that the MOE was an unsecured creditor regarding the operating assets and that the BIA's specific provisions for environmental claims governed.

The applicant held debentures issued by the respondent and applied for an oppression remedy under the Business Corporations Act to prevent the respondent from converting the debentures to common shares.

The application judge dismissed the application, finding the applicant lacked standing under the trust indenture.

The applicant appealed to the Court of Appeal.

The respondent brought a motion to quash the appeal, arguing jurisdiction lay with the Divisional Court.

The Court of Appeal granted the motion, holding that the dismissal of the oppression application was an order made under the Act, and therefore the appeal must be heard by the Divisional Court.