Derek T. Ground

The appellants, unsecured creditors, appealed orders sanctioning a plan of arrangement under the Companies' Creditors Arrangement Act (CCAA) and awarding costs against them.

The plan effectively eliminated any recovery for unsecured creditors, as the secured claims (over $60 million) far exceeded the maximum estimated value of the debtor's mining assets ($19.9 million).

The Court of Appeal dismissed the appeal, finding no error in the motion judge's acceptance of the asset valuation or his conclusion that the plan was fair and reasonable.

The Court also upheld the costs award, noting the appellants' opposition lacked a realistic basis.

The appellants challenged findings that the Indian Act provision restricting band election voting to members ordinarily resident on the reserve violated the equality rights of off-reserve band members.

The Court held that off-reserve band member status is an analogous ground under s. 15(1), and that the complete denial of voting rights in band governance perpetuated disadvantage and denied substantive equality.

The infringement was not justified under s. 1 because a total exclusion of non-residents was not minimally impairing.

The Court declared the impugned words in s. 77(1) invalid in their general application, suspended the declaration for 18 months, and denied an immediate constitutional exemption.