John Paul Ventrella

The appellants, lien claimants in a condominium development bankruptcy, appealed a motion judge's decision regarding the quantum of their priority under section 78(2) of the Construction Act.

They argued for a 20% priority due to two building mortgages, while the receiver contended it was a single 10% holdback deficiency.

The Court of Appeal granted leave to appeal, finding the statutory interpretation issue important.

On the merits, the Court of Appeal upheld the motion judge's interpretation, affirming that the priority is limited to the single 10% holdback deficiency, regardless of the number of building mortgages.

The appeal was dismissed.

Three lien claimants brought a motion in a receivership proceeding to determine the proper interpretation of s. 78(2) of the Construction Act regarding priority over building mortgages.

The claimants argued they were entitled to priority for the holdback deficiency against each building mortgage individually, effectively multiplying their priority amount.

The court dismissed the motion, holding that the lien claimants' priority is limited to the extent of the single deficiency in the owner's holdback over all building mortgages combined, as multiplying the priority would be contrary to the statutory scheme and unfairly prejudice subsequent encumbrancers.

Delta Elevator Company Limited brought a motion to enforce a settlement agreement with 31 Kingsbury Inc. regarding the installation and inspection of elevators.

Kingsbury opposed, arguing that no settlement was reached, or that it should not be enforced, or that granting judgment would be akin to partial summary judgment.

The court found that the parties had reached a legally binding settlement with agreement on all essential terms, and that Delta had not repudiated the agreement.

The court granted Delta's motion, ordering Kingsbury to comply with the settlement terms and pay costs.

The Landlord, 1694879 Ontario Inc., brought claims for fraudulent removal of goods against its tenant, Baffo's Incorporated, and several "Personal Defendants" who allegedly aided the removal.

Baffo's and the Personal Defendants brought cross-motions for summary judgment to dismiss these claims.

Baffo's also counterclaimed for wrongful distress and conversion, and sought punitive damages.

The court dismissed the Landlord's fraudulent removal claims against all defendants, finding no fraudulent intent as the goods removed were done so with the Landlord's consent (as brokered by police) and the remaining goods far exceeded the rental arrears.

The court granted summary judgment to Baffo's on its wrongful distress and conversion claims, finding the Landlord's actions illegal, excessive, and oppressive due to unlawful entry, lock changes, inflated arrears claims, seizure of fixtures, and unreasonable delay in selling goods.

The court also found Daryl Black, the Landlord's president, personally liable for the wrongful distress.

Punitive damages of $20,000 were awarded to Baffo's, and substantial indemnity costs were awarded to the Personal Defendants ($140,000) and Baffo's ($78,000).

Damages for wrongful distress and rental arrears were referred to a Master.

The applicants, a group of real estate development companies, sought an Initial Order under the CCAA and the continuation of their NOI proceedings under the CCAA.

Concurrently, the foreign representative of the parent company sought recognition of Israeli insolvency proceedings as a foreign main proceeding under Part IV of the CCAA.

The court approved a Co-operation Protocol between the foreign representative and the proposed Monitor, recognized the Israeli proceeding as a foreign main proceeding, and granted the Initial Order.

The court also extended the stay of proceedings to related limited partnerships and approved various administrative and interim financing charges.