P. Shea

The mortgagors brought a motion for leave to file an expert report regarding the calculation of a criminal rate of interest under s. 347 of the Criminal Code, after having conducted cross-examinations.

The mortgagees opposed the motion and brought a cross-motion seeking an order that the mortgagors pay an additional sum into court to secure the increased interest and costs resulting from the delay.

The court granted the mortgagors leave to file the expert report, but ordered them to pay an additional $106,500 into court to mitigate the prejudice to the mortgagees caused by the delay and the need to respond to the late-filed report.

The trustee in bankruptcy for several related real estate development companies brought applications to determine the priority of claims against the proceeds of a sold property and to set aside various payments and security granted to an investor, Dr. Goldfinger, as transfers at undervalue, fraudulent conveyances, or unjust preferences.

The court allowed some of the proofs of claim while disallowing others or requiring further evidence.

The court dismissed the trustee's claim to set aside a $2.5 million settlement payment to Goldfinger, finding it was made at arm's length and without intent to defraud creditors.

However, the court set aside a $471,000 payment to Goldfinger as a fraudulent conveyance, finding it was made with the intent to defeat another secured creditor, and ordered Goldfinger to repay the amount to the bankrupt estate.

In the context of CCAA proceedings for Priszm, the landlord (Scott's REIT) brought a motion claiming entitlement to the proceeds from the sale and assignment of various restaurant leases to third-party purchasers.

Scott's argued it had a proprietary interest in the lease consideration and that the secured creditor (Prudential) had subordinated its security interest to Scott's claim.

The court dismissed the motion, finding that the lease provisions created only an unsecured contractual obligation, not a proprietary interest.

Furthermore, the court held that the leasehold charge consents did not contain clear and unequivocal language demonstrating an intention by Prudential to subordinate its first-priority security interest to Scott's unsecured claim.

In a bankruptcy proceeding involving the estate of a bankrupt developer, the moving parties sought determination of priorities among claims.

During the hearing, counsel requested that transcripts of viva voce evidence be provided in a fully searchable electronic format for use in the continuation of the hearing.

The court found the request reasonable in modern litigation practice, noting the increasing reliance on electronic transcripts by both counsel and judges.

Given the lack of standardized electronic transcript formats prescribed by the Ministry of the Attorney General, the court ordered that the transcripts be produced in a fully word-searchable electronic format.