M. Zigler

In proceedings under the Companies’ Creditors Arrangement Act, the court addressed scheduling issues for a complex multi‑party trial involving the allocation of assets among creditor groups.

The parties proposed deferring the trial from April 1, 2014 to April 28, 2014, but disagreement remained regarding whether the later date would be feasible.

The court concluded that maintaining the earlier date risked a chaotic trial and that a rolling start date would create further uncertainty.

To ensure certainty and orderly preparation, the court rescheduled the trial to begin May 12, 2014 for 20 days and set case management and trial management conferences.

The court also required all parties to provide comprehensive fee and disbursement summaries to monitor escalating litigation costs.

In ongoing proceedings under the Companies’ Creditors Arrangement Act, the applicants sought approval of an Employee Hardship Application Process and an extension of the stay of proceedings.

The requested hardship process was unopposed and approved.

Certain noteholders sought conditions requiring enhanced reporting and procedural safeguards in relation to the claims process and employee claims.

The court held that the statutory test under s. 11(6) of the CCAA was satisfied because the circumstances warranted the extension and the applicants had acted in good faith and with due diligence.

The stay extension was granted, while proposed procedural changes to the claims process were found more appropriately addressed through a motion to vary existing orders.

The representative plaintiffs in a certified class action regarding the Canada Life Canadian Employees' Pension Plan moved for approval of a settlement agreement, a variation of trust, and class counsel fees.

The claims involved the ownership of surplus assets, partial wind-ups, and the payment of plan expenses from the fund.

The settlement provided an estimated $54 million in financial benefits to class members, including surplus distribution and contribution holidays.

The court found the settlement to be fair, reasonable, and in the best interests of the class, noting the legal risks associated with the claims.

The court also approved the variation of the pension trust under the Variation of Trusts Act and the rule in Saunders v. Vautier, distinguishing the Supreme Court's decision in Buschau because the employer supported the variation.

Finally, the court approved class counsel fees of approximately $4.8 million as fair and reasonable given the results achieved and the risks undertaken.