Mark Crane

The applicant sought recognition of various interim orders, including an Interim DIP ABL Order, in a cross-border insolvency proceeding under the CCAA.

The court granted most of the requested relief but declined to recognize the Interim DIP ABL Order and the associated DIP ABL Lenders’ Charge.

The refusal was based on the lack of adequate protection for Canadian landlords, who would be detrimentally affected by the Canadian entities guaranteeing and collateralizing the DIP facility without receiving comparable security or the benefit of marshalling, unlike other creditor groups.

Payless Holdings LLC, as foreign representative for itself and other Chapter 11 Debtors, applied for recognition of its U.S. Chapter 11 proceedings as foreign main proceedings under the CCAA in Canada.

The application also sought recognition of certain First Day Orders and a stay of proceedings.

The court granted the Initial Recognition Order, finding the U.S. proceedings to be foreign main proceedings based on the integrated operations and U.S. center of main interest for the Canadian entities.

Certain stay provisions were also granted, with remaining issues adjourned.

Following an appellate ruling that set aside a trial decision and declared a trust declaration void, the court was asked to determine costs after the original trial judge retired.

The successful plaintiff sought substantial indemnity costs exceeding $200,000, relying on findings that the defendant had engaged in fraudulent misrepresentations in connection with a loan transaction and a trust declaration.

The defendants argued that costs should be deferred pending the disposition of a counterclaim and challenged the scale and scope of the claimed costs.

The court held that substantial indemnity costs were justified given the findings of dishonest conduct but deferred determination of most pre‑trial costs because the majority related to the outstanding counterclaim.

The court fixed immediate costs of $20,500 for trial attendance and preparation of cost submissions, payable jointly and severally by the defendants.

A costs decision following dismissal of an application in a multi‑jurisdictional commercial dispute.

The successful party sought partial indemnity costs exceeding $28,000 while the unsuccessful party requested that costs be fixed at approximately half that amount and payable in the cause.

Applying Rule 57 of the Rules of Civil Procedure, the court considered the complexity of jurisdictional issues, the experience and efficiency of counsel, and the reasonableness of the claimed hours and rates.

The court held that the appropriate award should reflect overall reasonableness rather than a line‑by‑line bill assessment and fixed costs at $25,000 inclusive of fees, disbursements, and HST.

The court also set aside a registrar’s administrative order dismissing the action as abandoned, finding no delay in prosecution.

The defendant, a resident of South Africa, brought a motion to stay the action for lack of jurisdiction or to strike the statement of claim.

The plaintiff, an Ontario corporation, alleged an international conspiracy involving the defendant that resulted in the misappropriation of funds intended for a wind power project.

The court applied the real and substantial connection test and found that the plaintiff established a good arguable case for jurisdiction, as the alleged tort and breach of contract had sufficient connections to Ontario.

The court also declined to strike the pleadings, finding them adequate at this early stage, and validated the service of the statement of claim despite technical deficiencies.