Kelly D. Peters

Alvarez & Marsal Canada Inc., as Construction Receiver for Urbancorp entities, sought approval of its fees and its counsels' fees totaling over $3.4 million.

Terra Firma Capital Corporation, a junior secured creditor, objected to the fees of the Construction Receiver and its independent counsel (Blakes), seeking a 30% reduction, citing unreasonable hourly rates, disproportionate time spent, and duplication of services.

The court reviewed the fees based on the Belyea factors, emphasizing value provided over time spent.

The court found the receivership complex and the rates reasonable, but identified some duplication due to the excessive number of timekeepers from Blakes.

The court approved most fees but applied a minor reduction of $35,000 to Blakes' fees.

The Cetero Group brought a motion seeking entitlement to a $298,243 tax refund (carry-back refund) held by PricewaterhouseCoopers Inc. (PWC), as receiver of PRACS Institute Canada B.C. Ltd. The Cetero Group argued the refund was not validly assigned to PRACS, that PWC would be unjustly enriched, and that they were entitled to the refund through legal or equitable set-off due to PRACS's failure to pay under an operation support agreement.

The court found the carry-back refund was validly assigned to PRACS under an asset purchase agreement, providing a juristic reason for PWC's retention, thus defeating the unjust enrichment claim.

Furthermore, the court determined that neither legal nor equitable set-off applied, as the refund was not a debt owing by BA to PRACS, and the cross-claim for unpaid invoices was not sufficiently connected to the refund to warrant equitable set-off.

The motion was dismissed.