Joseph Bellissimo

In the CCAA proceedings of Laurentian University, the applicant sought an order regarding a Compensation Claims Process.

On consent, the court deferred relief related to Third Party RHBP Claims to a subsequent hearing, ordering that the deadlines and procedures in the Compensation Claims Process Order would not apply to those claims at this time.

The remaining unopposed relief was granted.

Laurentian University brought a motion within its CCAA proceedings seeking the appointment of a Chief Redevelopment Officer, an increase in the fee cap for the Board of Governors' independent counsel, and approval of a claims process.

The court approved the appointment of the CRO and the fee increase.

Regarding the claims process, TD Bank proposed amendments to require consultation on claims over $5 million.

Balancing the need for efficiency with creditor involvement, the court modified the claims process to establish an 'Inspector Group' to authorize the compromise of material claims, drawing on principles from the Bankruptcy and Insolvency Act.

In a court‑appointed receivership over payroll service companies, the receiver sought a declaration that a customer breached the stay provision of the receivership order by recalling funds previously transferred through a pre‑authorized debit.

The funds had already been deposited into the debtor’s consolidated account prior to the receivership order but were later reversed after the customer learned of the receivership.

The court held that once deposited, the funds constituted “Property” of the debtor within the meaning of the receivership order, even if intended for payroll.

By requesting reimbursement through its bank after receiving notice of the receivership, the customer exercised a remedy affecting the debtor’s property and breached the stay.

The court ordered repayment of the funds to the receiver with interest, while allowing the customer to prove a claim in the receivership distribution.