Jeffrey Colwill Carhart

In a Companies' Creditors Arrangement Act (CCAA) proceeding, the applicants sought court approval for the sale of a real property, the Monitor's reports, a revised governance protocol, and a sale and investor solicitation process (SISP) for their logistics business.

The court approved the property sale, finding it met the Soundair Principles despite not being a court-supervised process.

The Monitor's reports and activities were also approved.

The proposed SISP was approved with a minor amendment requiring the Monitor to consult directly affected secured creditors.

The Revised Governance Protocol, which included default commission rates for vehicle sales and collections, was approved as an interim measure, balancing the need for cost recovery with creditor concerns, noting that financiers could negotiate alternative rates or withhold consent to sales.

The applicants in CCAA proceedings sought an extension of the Stay Period to April 15, 2016, as they prepared an Amended and Restated Plan of Compromise.

The court found the parties were working in good faith and with due diligence, and granted the extension.

The court also approved an agreement to lift the Co-Tenancy Stay on acceptable terms and extended the Notice of Objection Bar Date.

In supplementary reasons for judgment, the Court of Appeal clarified its earlier costs order.

The court held that the third party and the defendants are jointly and severally liable to pay the plaintiff's costs of the motion and the appeal.

The appellant purchased a condominium unit and paid a deposit.

The developer placed the deposit in trust, obtained prescribed security, and then used the funds to repay a building loan.

The developer failed to pay the appellant interest on her deposit during her interim occupancy, as required by s. 53(3) of the Condominium Act.

The appellant sued the developer's directors and others for breach of trust.

The motion judge granted summary judgment dismissing the claim, finding that the trust obligation ended when the prescribed security was obtained.

The Court of Appeal allowed the appeal, holding that the statutory trust imposed by s. 53(1) extends to the interest payable under s. 53(3) and is not terminated by the provision of security.