John Birch

The applicant, acting as receiver for the primary secured creditor, sought the appointment of a receiver and manager over the debtor company.

The debtor company's interim receiver concurrently sought an extension of time to file a proposal under the Bankruptcy and Insolvency Act and approval of its activities.

The court lifted the existing stays of proceedings, appointed the receiver, granted a 45-day extension to file a proposal to avoid automatic bankruptcy, and approved the interim receiver's activities, finding the relief to be just, convenient, and unopposed.

Following the dismissal of the plaintiffs' summary judgment motion and the granting of the defendants' summary judgment motion, the court determined the quantum of costs.

The defendants sought a combined total of approximately $150,000 in partial indemnity costs, while the plaintiffs argued for a significantly reduced amount of $60,000.

Applying the overriding principle of reasonableness, the court ordered the plaintiffs to pay $65,000 to the lead defendant and $30,000 to the remaining defendants.

The applicant law firm, Thomas Gold Pettingill LLP, applied for a declaration regarding $61,351.64 held in trust from a settlement, which was claimed by both the respondent former client, Ani-Wall, and the respondent former law firm, Cassels Brock.

The funds represented an unpaid legal account.

The court found that while the applicant lawyer breached a personal undertaking and could not unilaterally bind the client to an equitable assignment, the former law firm was entitled to a charging lien over the funds.

The court held that the charging lien was not subject to a limitation period, unlike the underlying contract claim.

The court ordered the funds to be subject to the charging lien but allowed the former client to seek an assessment of the accounts due to special circumstances.