In a CCAA restructuring proceeding, stakeholders sought disclosure of a settlement agreement between U.S. Steel, its Canadian subsidiary, and the Attorney General of Canada regarding undertakings under the Investment Canada Act.
The CCAA judge held that the agreement was entirely privileged under s. 36 of the ICA.
On appeal, the Court of Appeal found that while s. 36(5) protects the Crown from being compelled to disclose the agreement, this protection does not extend to the private corporations.
The appeal was allowed, and the issue of whether common law settlement privilege barred disclosure was remitted to the CCAA judge.
