Jennifer Quick

The applicants sought an amended and restated initial order under the CCAA, including approval of a stalking horse sales process, a Key Employee Retention Plan, an increased administration charge, and an extension of the stay of proceedings.

The court granted most of the requested relief, finding it necessary for the restructuring and supported by the Monitor.

However, the court dismissed the applicants' request to stay a creditor's action against three directors on their personal guarantees, ruling that section 11.03(2) of the CCAA expressly prohibits staying actions against directors on guarantees relating to the company's obligations.

The defendants brought a motion to set aside an order to continue obtained by the plaintiff on requisition.

The parties had previously agreed to schedule a case conference to discuss how the action should be reconstituted following the original plaintiff's death.

Despite this agreement and knowing the issue was contentious, the plaintiff's counsel obtained the order to continue without notice.

The court found that the plaintiff's counsel failed to act in good faith and candour by obtaining the order while the issue was scheduled for a case management hearing.

The motion was granted and the order to continue was set aside.

The appellant appealed an order upholding a previous order that set aside its statement of defence and dismissed its counterclaim.

The appellant argued the motion judge erred in interpreting Rule 37.14 of the Rules of Civil Procedure, characterizing the motion as a collateral attack, and failing to properly weigh the appellant's self-represented status and the short duration of delay.

The Court of Appeal dismissed the appeal, finding the motion judge comprehensively balanced the interests of the parties and correctly concluded the appellant had wholly failed to comply with court orders without reasonable explanation.

The appellant appealed an order refusing to set aside a default judgment.

The Court of Appeal found that the respondent had not properly proved its default judgment.

Although this issue was not raised before the motion judge, the Court held it was in the interests of justice to set aside the default judgment to allow the appellant to contest the quantum of the claim and pursue a counterclaim for rental arrears.

The appeal was allowed, the default judgment was set aside, and the motion judge's costs award was varied.