James David Bunting

The Opposing Landlords sought costs after successfully opposing the debtor Applicants' motion to assign 25 commercial leases to a third party in a CCAA proceeding.

The court found that the dispute was a classic adversarial proceeding, entitling the successful landlords to costs.

The court awarded partial indemnity costs to the landlords, including additional costs to Ivanhoe Cambridge for opposing ipso facto relief.

However, the court deferred payment of the costs until the end of the CCAA proceeding to avoid unfairly prejudicing the secured creditors' collateral before priorities are finally determined.

The applicant, a hedge fund shareholder, brought an urgent application under section 248 of the OBCA seeking to adjourn the respondent corporation's annual general and special meeting of shareholders and to reset the record date.

The applicant alleged the notice was non-compliant with the OBCA and that the board acted oppressively by setting a timeline that effectively prevented shareholders from nominating an alternative slate of directors.

The court found that the respondent was not an "offering corporation" and had met all statutory notice requirements under sections 95(4) and 96(1) of the OBCA.

The court held that the notice procedures followed past practice and did not breach the reasonable expectations of shareholders as established in BCE Inc. v. 1976 Debentureholders.

The application was dismissed with costs of $75,000 to the respondent.

The appellants, FedEx, appealed an order certifying a class proceeding brought by the respondent, who alleged FedEx charged undisclosed and unsolicited customs brokerage fees in breach of the Consumer Protection Act.

FedEx argued the claim disclosed no cause of action, lacked common issues, and had an overly broad class definition.

The Court of Appeal dismissed the appeal, finding that the pleadings disclosed a reasonable cause of action, the systemic nature of the billing practices raised common issues, and the class definition appropriately included claims that might face limitation or jurisdictional defences, which are better addressed at trial.

In a landmark CCAA proceeding involving Hudson's Bay Company, the court declined to approve the assignment of 25 major retail department store leases across Canada to a new tenant, Ruby Liu Commercial Investment Corp., despite the transaction representing the highest bid and generating approximately $50 million in net proceeds for creditors.

The court found that the proposed assignee failed to meet the reasonableness standard under section 11.3(3) of the CCAA, particularly regarding its ability to perform the substantial and ongoing obligations under the leases.

The decision emphasizes that section 11.3 is an extraordinary power that must be exercised sparingly, and that the court must balance the interests of all stakeholders, including the contractual counterparties (landlords) who would be compelled into a long-term relationship with an untested and undercapitalized purchaser.

The court also rejected the applicants' arguments that certain lease provisions constituted ipso facto clauses violating the anti-deprivation rule and section 34 of the CCAA.

In this CCAA proceeding, the court granted multiple orders sought by Hudson's Bay Company and related entities, including approval of lease assignment agreements with YM Inc. and Ivanhoe Cambridge, sealing of confidential bid information, extension of the stay of proceedings to October 31, 2025, and approval of the Monitor's reports and activities.

The court rejected requests for adjournment and conditional distributions, finding the lease monetization process was fair and transparent, and that the proposed transactions represent a positive development for stakeholders.

The appellant, operator of Rebel and Cabana Pool Bar, appealed the Registrar's proposals to add new conditions and refuse the removal of existing conditions on its liquor licence, primarily concerning outdoor noise that disturbed Toronto Island residents.

The Tribunal found that while noise had disturbed residents, the appellant's recent implementation of a cardioid speaker system and sound monitoring, along with the City of Toronto's new objective decibel-based noise by-law, constituted a change in circumstances.

The Tribunal rejected the Registrar's proposed condition to ban all outdoor amplified music, finding it disproportionate.

Instead, the Tribunal removed the subjective 'inaudibility' conditions and replaced them with objective decibel limits and mandatory sound monitoring, while adding conditions regarding capacity, community communication, and notification of future applications.

The Appellant, operator of Rebel and Cabana Pool Bar, appealed a Notice of Proposal by the Registrar to attach nine new conditions to its liquor licence, including a ban on outdoor amplified music, and a Notice of Proposal refusing to remove existing conditions.

The Tribunal found that while noise from the premises had disturbed nearby Toronto Island residents, a complete ban on outdoor amplified music was disproportionate given the Appellant's recent successful noise mitigation efforts and the implementation of a new decibel-based municipal noise by-law.

The Tribunal ordered the removal of several subjective and unenforceable conditions, replacing them with objective, decibel-based sound monitoring requirements aligned with the municipal by-law, while adding other conditions to address community concerns.

The Applicants, Apollo Technology Capital Corporation and Nobul Technologies Inc., sought orders regarding the conduct of the upcoming annual general meeting (AGM) of MediPharm Labs Corp., including the appointment of an independent chair, the appointment of TSX Trust as scrutineer, and a declaration regarding the validity of their Dissident Circular.

The Court declined to grant the requested relief, finding no evidence of impropriety or unfairness in the process established by MediPharm’s by-laws and confirming that the issues raised could be addressed after the AGM if necessary.

The decision addresses motions regarding the appointment of representative counsel for current and former employees and retirees of Hudson’s Bay Company ULC and related entities in ongoing Companies’ Creditors Arrangement Act (CCAA) proceedings.

The Court declined to appoint any of the nominated law firms as representative counsel at this stage, instead appointing the Honourable Herman Wilton-Siegel as an independent third party to evaluate proposals and make a recommendation.

The Court also approved amendments to the Sale and Investment Solicitation Process (SISP) to remove the company’s art and artifact collection from the SISP and to appoint Heffel Gallery Limited to conduct a separate auction for the collection, subject to further court approval of procedures.

The reasons review the legal framework for appointing representative counsel and the importance of balancing stakeholder interests in complex insolvency proceedings.

This endorsement grants a brief adjournment in the Companies’ Creditors Arrangement Act (CCAA) proceedings involving Hudson’s Bay Company ULC and related entities, following ongoing discussions between the applicants and stakeholders.

The court extends the stay of proceedings, increases the Directors’ Charge, amends the relative priorities of charges, and approves the engagement of Reflect Advisors, LLC as financial advisor.

The court finds the requested relief appropriate, unopposed, and supported by the Monitor, and orders the requested amendments to the Initial Order.