Hugh O’Reilly

This appeal considered whether actuarial surpluses recorded in federal public-sector superannuation accounts were assets in which plan members held legal or equitable interests.

The Court held the accounts were statutory accounting records tracking Consolidated Revenue Fund transactions, not segregated asset pools.

It rejected claims based on proprietary entitlement, fiduciary duty, unjust enrichment, constructive trust, and alleged expropriation.

The Court further held the statutory amendments authorized debiting surplus amounts and did not require compensation.

The appeal was dismissed with costs.

On an unopposed insolvency motion under Part III of the Bankruptcy and Insolvency Act, the moving parties sought sanction of an amended consolidated proposal with substantive consolidation and a broad third-party release.

The court applied the section 59(2) reasonableness-and-benefit test, considered good faith and creditor voting support, and accepted that the proposal met statutory requirements.

The court held that third-party releases were permissible in the circumstances and interpreted the statute harmoniously with restructuring principles applied under related insolvency legislation.

Applying the Metcalfe criteria, the court found the release was necessary, supported by tangible contributions, and beneficial to creditors generally compared with bankruptcy alternatives.

The sanction order was granted.