Kirk M. Baert

The appellants, auditors and underwriters of Sino-Forest Corporation, appealed an order declaring that their claims for contribution and indemnity against Sino-Forest were 'equity claims' under the Companies' Creditors Arrangement Act (CCAA).

The claims arose from proposed shareholder class actions alleging misrepresentation.

The Court of Appeal dismissed the appeal, holding that the definition of 'equity claim' in s. 2(1) of the CCAA focuses on the nature of the claim rather than the identity of the claimant.

The court found that the appellants' claims for contribution and indemnity were clearly connected to the shareholders' equity claims and thus fell within the expansive statutory definition.

The defendants brought a motion to strike portions of the plaintiffs' proposed class action statement of claim, arguing that the statutory cause of action under Part XXIII.1 of the Securities Act was statute-barred because the plaintiffs did not obtain leave before the expiry of the three-year limitation period.

The court held that the common law special circumstances doctrine applies to the limitation period in the Securities Act, giving the court jurisdiction to make an order nunc pro tunc granting leave.

The court found special circumstances existed because the defendants had known of the claims since 2007 and suffered no prejudice.

The motion to strike the statutory claims was dismissed, but the common law negligent misrepresentation claim was struck with leave to amend for failing to plead detrimental reliance.

The appellant sought to certify a class action on behalf of 30,000 residents complaining of noise and physical pollution from a landfill owned by the respondent city.

The Supreme Court of Canada held that while the appellant established an identifiable class and common issues, he failed to demonstrate that a class action was the preferable procedure for resolving the claims.

The Court found that the common issues were negligible compared to the individual issues, and that alternative avenues of redress, such as a Small Claims Trust Fund, were available.

The appeal was dismissed.