Matthew P. Gottlieb

CentriLogic appealed a trial order requiring it to pay Infor Financial Inc. damages for a financing fee and trial costs.

The appeal centered on the interpretation of an engagement agreement, specifically whether Infor was entitled to the financing fee and if CentriLogic breached a confidentiality clause by sharing Infor's proprietary materials.

The Court of Appeal dismissed the appeal, upholding the trial judge's findings that CentriLogic breached the agreement and that Infor was entitled to the financing fee based on a commercially reasonable interpretation of the contract.

The court also affirmed the substantial costs award, finding no error in principle.

This supplementary endorsement addresses a request from JTI-Macdonald Corp. regarding the adequacy of notice elements in the Claims Procedure Order within the ongoing Companies' Creditors Arrangement Act (CCAA) proceedings.

The court confirmed its satisfaction that the notice elements in the Claims Procedure Orders are reasonable in the circumstances, addressing an oversight from previous submissions.

The Superior Court of Justice addressed multiple motions within the complex Companies’ Creditors Arrangement Act (CCAA) proceedings of JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc. The court granted a stay extension until January 31, 2025, and approved Meeting Orders and Claims Procedure Orders.

These orders facilitate the advancement of comprehensive Plans of Arrangement, developed by the court-appointed Mediator and Monitors, aiming for a Pan-Canadian global settlement of tobacco claims totaling $32.5 billion.

The court found the plans were not "doomed to fail" despite outstanding issues regarding financial allocation among the Tobacco Companies and the creditor status of JTI-Macdonald TM Corp.

The plaintiff in a complex family trust dispute brought motions on the eve of trial for further documentary production, further examinations for discovery, and leave to amend her Statement of Claim.

The motions sought to introduce new allegations that the defendants covered up and settled claims of sexual misconduct against the family patriarch, Frank Stronach.

The court dismissed both motions, finding no evidence that the requested documents existed, that the new allegations were irrelevant to the pleaded claims of corporate mismanagement, and that amending the pleadings three weeks before a scheduled seven-week trial would cause non-compensable prejudice and delay.

The applicants sought a determination that the arbitrator erred in finding jurisdiction over certain relief claimed by the respondents in an ongoing arbitration.

The court found that the applicants had waived their right to object to the arbitrator's jurisdiction through their conduct, including filing a counterclaim and issuing their own notice of demand for arbitration invoking the arbitrator's jurisdiction.

The court dismissed the application, emphasizing that allowing a last-minute jurisdictional challenge after significant participation would undermine the efficiency and benefits of arbitration.

This motion, brought by the Van Essen Companies and Wouter Van Essen, sought to strike evidence, grant judgment, and stay proceedings in a receivership, alleging unauthorized access to their privileged records by the court-appointed Receiver (FTI Consulting Inc.) and the appointing creditor (MBL Administrative Agent II LLC).

The court dismissed the motion, finding that the Van Essen Companies failed to establish that the records were intended to be confidential, as Wouter Van Essen knowingly used a Techlantic email account (a third-party entity he considered arm's length) for business and personal communications, including those with legal counsel, and shared emails with Techlantic's senior officer.

The court concluded that the prerequisite for privilege (confidentiality) was not met, and even if it were, privilege was waived by the knowing use of a third-party server and delayed notification to the Receiver.

The Moving Parties (First Nations and Municipalities) sought to stay the implementation of a $150 million settlement between Purdue Canada and Canadian Governments, arguing it might be unlawful, prejudicial, preferential, or an abuse of process, and sought financial disclosure from Purdue Canada.

The court dismissed the motion, finding it lacked a basis to compel disclosure or stay the settlement.

The court affirmed its jurisdiction over Purdue Canada was limited to the CCAA recognition proceedings, not general supervision, and found no evidence of bad faith or insolvency to warrant the requested orders.

This endorsement concerns three tobacco companies (JTI-MacDonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc.) operating under the Companies’ Creditors Arrangement Act (CCAA).

Each applicant sought an extension of their stay period until September 30, 2024, to continue formulating plans of arrangement.

Imperial also requested authorization to terminate a retirement plan and post security for a vaping product license.

RBH sought a procedural amendment for employee grievances.

The court, finding no opposition and satisfied with the applicants' good faith, diligence, and sufficient resources, granted all requested relief, noting significant progress in ongoing mediation.

The plaintiff obtained an ex parte Mareva injunction against multiple defendants, including Nova Diamonds Inc. and Toronto Reserve Gold Inc., alleging they received proceeds from a fraudulent mortgage.

The moving defendants sought to set aside the injunction, arguing the plaintiff failed to make full and frank disclosure on the ex parte motion.

The court found that the plaintiff failed to disclose that it had not conducted a tracing analysis to confirm the funds received by the moving defendants were actually the fraudulent proceeds, and that it had no evidence of a risk of dissipation.

The court set aside the Mareva injunction and subsequent non-dissipation orders against the moving defendants due to the plaintiff's material non-disclosure.

This decision addresses the impact of a Court of Appeal ruling that declared certain contingent property interests in a 1981 development agreement void for perpetuities.

The Superior Court was remitted to determine which other provisions of the 1981 Agreement and related contracts were affected and rendered inoperative.

The court found that the voided sections fundamentally altered the original bargain, which included a path for the evolution and potential redevelopment of the golf course lands, not a perpetual obligation to operate a golf course.

Consequently, several provisions related to the golf course's perpetual operation, sale, right of first refusal, and redevelopment path were declared inoperative.

The 40% open space principle was largely maintained but its application to golf course redevelopment was clarified.

The plaintiffs sought to enforce an "Outline of Terms of Settlement" reached during mediation, arguing it constituted a binding agreement.

The defendants contended that the Outline was not intended to be enforceable and lacked essential terms.

The court found that the Outline did not objectively reflect a mutual intention to create a binding agreement and that numerous material issues, including debt reallocation, minority shareholder rights, and tax implications of asset transfers, remained unresolved.

The court dismissed the motion, emphasizing that it cannot create a contract for parties where essential terms are missing.

The plaintiff, Infor Financial Inc., sought costs of $511,762.22 following a four-day trial where it obtained a judgment more favorable than its settlement offer.

The defendant, Centrilogic, Inc., argued the amount was excessive and disproportionate.

The court found the plaintiff was entitled to the full amount, applying partial indemnity costs up to the date of the settlement offer and substantial indemnity costs thereafter, in accordance with Rule 49.

The court rejected arguments of disproportionality and excessive time spent, noting the defendant's "hard-nosed approach" and intransigence throughout the litigation.

The Applicants, minority shareholders, sought to enforce a "shotgun" buy/sell provision in a unanimous shareholders agreement (USA) against the Respondent, the majority shareholder.

The Respondent failed to exercise his option to buy or sell within the stipulated 15-day period, arguing the Applicants' buy/sell notice was invalid due to alleged threats of mass resignation by management, bad faith, oppression, and breach of implied terms.

The court found the buy/sell notice strictly complied with the USA and rejected the Respondent's arguments, finding no evidence of unlawful threats or breaches of duty.

The court also denied the Respondent's request to convert the application into a trial and consolidate it with a separate action, emphasizing the purpose of buy/sell provisions for expeditious resolution.

The application was granted, deeming the Respondent to have accepted the offer to sell his shares.

Mattamy (Downsview) Limited sought to set aside an arbitration award under s. 46 of the Arbitration Act, 1991, arguing the arbitrator exceeded jurisdiction and committed procedural unfairness by refusing to admit relevant evidence.

The court found the arbitrator did not exceed jurisdiction as the "New Issue" fell within the broad scope of the arbitration.

However, the court found procedural unfairness and a failure of natural justice due to the arbitrator's refusal to admit the "REALPAC Handbook" evidence, which was relevant to the "New Issue" he himself raised, especially given the respondents did not object and no formal motion was allowed.

The court emphasized that procedural fairness is an independent right, and its denial invalidates the decision regardless of the likely outcome.

The Regional Municipality of York brought a motion for a limited permanent sealing order on consent over proprietary information submitted by two bidders during a competitive procurement process for public transportation services.

The court applied the three-part test from Sherman Estate and found that court openness posed a serious risk to the important public interest of maintaining the integrity of future procurement processes.

The court granted the sealing order, concluding that the benefits of protecting the commercially sensitive information outweighed the negative effects on court openness.

The Joseph Lebovic Charitable Foundation (appellant) appealed the dismissal of its bankruptcy application against the Jewish Foundation of Greater Toronto (respondent).

The appellant had donated over $19 million to a Donor Advised Fund (DAF) with the respondent, which it considered an irrevocable gift.

After the founder's death, his executor sought to direct the remaining DAF funds to specific charities, which the respondent did not follow.

The appellant initiated bankruptcy proceedings, alleging the respondent ceased to meet liabilities.

The motion judge dismissed the application, finding no debt, no act of bankruptcy, and no special circumstances for a single-creditor application, and that the application was an abuse of process.

The Court of Appeal upheld the motion judge's decision, finding no palpable and overriding error of fact or errors of law, and affirmed the elevated costs award due to the abuse of process.

The moving party brought a motion for leave to appeal an earlier order.

The Divisional Court dismissed the motion for leave to appeal in writing, awarding costs of $10,000 to the responding parties other than one specific respondent.

The moving party brought a motion for leave to appeal an order dated July 11, 2022.

The Divisional Court dismissed the motion for leave to appeal.

Costs were awarded to the respondents in the fixed amount of $21,000 all inclusive.