David G. Greenaway

Appeal from an application decision concerning the effect of dissolution of a two-person accounting partnership on a restrictive covenant in the partnership agreement.

The application judge held that the appellant had withdrawn, thereby triggering a capital-account reduction tied to clients transferring to the departing partner, and directed a trial on damages.

The Court of Appeal held that, on a general dissolution of a two-member firm, the firm ceased to exist and absent an express surviving contractual restraint, the parties were free to pursue their own practices.

The finding that the appellant had withdrawn so as to trigger the covenant was set aside, the impugned paragraphs of the judgment were deleted, and the cross-appeal was unnecessary to decide.

The representative plaintiff, a disabled veteran, sued the federal Crown for breach of fiduciary duty for failing to pay interest on pension funds administered by the Department of Veterans Affairs.

Parliament enacted legislation barring claims for interest prior to 1990.

The Supreme Court of Canada held that the expropriative legislation was valid and not inconsistent with the due process or fair hearing protections of the Canadian Bill of Rights, as Parliament has the power to expropriate property without compensation using clear and unambiguous language.

On a motion in a class proceeding appeal, the appellant Crown sought a stay of a partial summary judgment on liability, a stay of damages proceedings, transfer of a related appeal from Divisional Court, an extension of time to perfect, and other procedural relief.

The court held that the Crown's appeal from the dismissal of its own summary judgment motion was sufficiently intertwined with the respondents' summary judgment to warrant transfer under s. 6(3) of the Courts of Justice Act.

The stay request was refused on balance of convenience grounds because the damages proceeding should continue notwithstanding the pending appeal.

The court granted an extension of time to perfect the appeal, left any overlength factum request to be renewed later, kept the appeal on the expedited list, and reserved costs.