John E. Smith

In a complex receivership and bankruptcy-related proceeding involving a charitable foundation and associated corporations, the applicants brought a motion relating to governance and procedural matters in ongoing litigation.

The court addressed scheduling issues arising after a prior endorsement and dealt with a motion seeking removal of the remaining director of the foundation.

The court directed that the director indicate whether she would consent to removal and scheduled further steps if consent was not provided.

The court also rescheduled examinations and cross-examinations of two individuals in Buffalo, New York, set procedural timelines, and confirmed certain agreed limitations on director liability and additional costs awards.

In an inspection proceeding under the Ontario Business Corporations Act, the court addressed competing motions to approve professional fees incurred during an investigation of several corporations connected to development projects and investment solicitations.

The applicants and the court-appointed inspector sought approval of their accounts and an increase to the existing administrative charge securing payment of investigation costs.

The court assessed the inspector’s fees, legal fees, and applicants’ counsel fees under Rule 57, reducing certain amounts for duplication, clerical work, and excessive rates.

The administrative charge was increased from $200,000 to $399,398 to cover the approved costs.

While the respondents, including a controlling director, were held liable for the costs, the court declined to expand the administrative charge to include the director’s personal assets.

Investors sought the appointment of a receiver over several related corporations and continuation of restraining orders against individuals and entities associated with a charitable foundation alleged to have received investor funds.

The court reviewed the procedural history of inspection, receivership, and bankruptcy proceedings, including interim orders restraining dissipation of assets and permitting limited use of funds for legal and living expenses.

Evidence suggested that investor funds from Ontario real estate projects had been transferred to a charitable foundation and subsequently moved to the United States, including property transactions shortly before asset-freezing motions.

In the absence of opposing materials from several respondent corporations, the court confirmed the appointment of a receiver over certain corporations and extended the interim receivership and restraining orders affecting the foundation and related individuals.

In complex receivership and bankruptcy-related proceedings involving a charitable foundation and associated corporations, the court addressed scheduling and procedural issues arising after prior bankruptcy orders.

Motions concerning the removal of directors and issues involving a third-party entity were adjourned on consent to dates to be set by the trial coordinator.

Examinations of certain responding parties were cancelled due to immigration concerns relating to re-entry into the United States.

The court directed that the examinations proceed in Buffalo, New York under Ontario procedural law, ordered the responding parties to seek necessary U.S. visa permissions, and required advance funding of travel costs for opposing counsel and the receiver.

The endorsement also addressed potential venue issues in a related promissory note action.

Investors and related applicants brought proceedings seeking receivership and related relief against several corporations and individuals connected to a charitable foundation.

Evidence showed the foundation transferred a Florida property to its directors shortly after learning of a pending motion seeking to restrain asset dissipation and appoint a receiver.

The court continued interim restraining and receivership orders and granted a full receivership order against certain corporate respondents other than the foundation.

The issue of whether the property transfer constituted a void transfer under s. 95(2) of the Bankruptcy and Insolvency Act was adjourned to the scheduled bankruptcy trial.

The court also prohibited the release of funds held in a lawyer’s trust account and approved the receiver’s reports.

In complex proceedings involving an inspection application, receivership, and bankruptcy relating to corporate entities and a charitable foundation, the Inspector brought a motion to approve accounts and increase an administrative charge.

Counsel for the foundation sought an adjournment due to counsel’s unavailability outside Canada.

The court granted the adjournment and set procedural timelines for the exchange of materials and questions regarding accounts.

The court also extended existing ex parte restraining orders and the appointment of an interim receiver pending a return hearing.

Respondents subject to the restraining orders were directed to provide an accounting of expenditures made under the limited exceptions permitted by the orders.