Joseph Blinick

The Estate Trustee During Litigation (ETDL) brought a motion for approval of the sale of a commercial property co-owned by the insolvent estate and a third party.

The sale was opposed by certain beneficiaries who argued the sale price was improvident and the ETDL failed to follow court-ordered sales processes.

The co-owner initially opposed the sale but later consented.

The court applied the Soundair principles and approved the sale, finding that the property had been adequately marketed, the price was not improvident given the property's derelict state and ongoing operating losses, and the co-owner had waived any procedural irregularities.

The plaintiff in a proposed securities class action sought approval of a third-party funding agreement (After-the-Event insurance) under s. 33.1 of the Class Proceedings Act, 1992.

The plaintiff in a parallel British Columbia class action sought to intervene to oppose the funding, arguing the B.C. action was self-funded and therefore cheaper.

The court dismissed the motion to intervene, noting the B.C. action was languishing and there was no evidence it would actually be cheaper.

The court approved the funding agreement, finding it fair, reasonable, and in the best interests of the class, as it did not diminish the plaintiff's control over the litigation and the insurers were financially capable.

Costs of the intervention motion were awarded to the plaintiff against the proposed intervenor.