Appeal allowed; motion judge erred by effectively setting aside a CCAA vesting order without a proper motion.
In a CCAA proceeding, the appellant purchased the debtor's assets, including a spray booth, pursuant to a vesting order.
When the appellant attempted to remove the equipment, the landlord claimed ownership under the lease.
The motion judge ruled in favour of the landlord, finding the debtor had no title to transfer.
The Court of Appeal allowed the appeal, holding that the motion judge's decision created two inconsistent court orders and constituted an impermissible collateral attack on the vesting order, which had not been set aside or varied.
Clemmer Steelcraft Technologies Inc. v. Bangor Metals Corp., 2009 ONCA 534