The Royal Crest Lifecare Group Inc. was petitioned into bankruptcy and Ernst & Young was appointed as trustee.
The trustee sought an order that it not be bound by the collective agreements and not be deemed a successor employer.
The unions brought a cross-motion seeking leave under s. 215 of the Bankruptcy and Insolvency Act to pursue an application before the Ontario Labour Relations Board to designate the trustee as a successor employer.
The bankruptcy judge dismissed both motions as premature.
The unions appealed the dismissal of their cross-motion.
The Court of Appeal dismissed the appeal, finding that the bankruptcy judge did not err in the exercise of his discretion by deciding that the cross-motion was premature.
