Ryan Shah

The appellant challenged orders in bankruptcy proceedings including standing rulings, estate consolidation, and treatment of approved claims.

The court found no right of appeal under s. 193(a) or (c) of the BIA, declined leave under s. 193(e), and held the appellant had not timely invoked available statutory claim-challenge mechanisms.

The appeal was dismissed.

The appellant entered into an Agreement of Purchase and Sale with a court-appointed receiver to purchase real estate.

The receiver brought a motion for approval and vesting.

However, late-breaking offers emerged, including one 37% higher than the appellant's offer.

The motion judge declined to approve the sale and instead ordered a six-day extension of the bidding process.

The appellant appealed, arguing the motion judge misapplied the principles from Royal Bank of Canada v. Soundair Corp. The Court of Appeal dismissed the appeal, finding the motion judge properly exercised discretion in reopening the auction process given the magnitude of the late offer and the receiver's alternative recommendation.

This is a costs decision following the applicant's successful recovery of a loan in the principal amount of approximately $14 million plus accrued interest.

The applicant sought full indemnity costs of $125,890 based on a provision in the loan agreement, while the respondents argued for partial indemnity costs of $50,000.

The court found that the loan agreement provision was sufficiently clear to encompass enforcement costs and awarded substantial indemnity costs of $108,000 inclusive of fees, HST and disbursements.

The Receiver sought an order for discharge and release, approval of its Third Report, statement of receipts and disbursements, and fees.

The Court declined to grant the discharge, citing CBJ’s unauthorized commencement of actions in Ontario and Alberta in breach of the Receivership Order.

The Court found CBJ’s disregard for court orders troubling and noted the lack of contrition or proper procedure to regularize its actions.

The motion for discharge was adjourned to allow for a more complete record and for the Receiver to advise on the value of the Ontario and Alberta actions to the estate.

This costs endorsement addresses the allocation of costs following a stay of proceedings due to the plaintiff’s failure to promptly disclose a settlement with certain defendants.

The court reviews the history of the Anton Piller Order, the Comeback Order, and the subsequent motions, ultimately awarding partial indemnity costs to the successful defendants, Marc Castillo and Castillo HR Consulting Inc., in the amount of $45,000.

The court declines to revisit costs already determined by a previous order and limits recovery to the portion of the motion related to the stay, excluding costs for the Anton Piller Order and preparation of a discovery plan.

The court granted judgment in favour of V2 Investment Holdings Inc. for a $12.9 million loan made to Sam Mizrahi and related corporate respondents, finding the debt liquidated and undisputed.

The respondents' arguments of bad faith and equitable set-off, based on alleged promises regarding mortgage registration and intercreditor agreements, were rejected as unsupported by the evidence.

The court found no binding agreement to amend the loan or enter a standstill, and no breach of the duty of honest performance.

Judgment was granted for the outstanding amount plus interest, with directions for further submissions on costs and interest calculations.

The court considered a motion by Marc Castillo and Castillo HR Consulting Inc. to stay the action for abuse of process due to Peninsula Employment Services Ltd.'s failure to immediately disclose settlement agreements with three former co-defendants.

The court found that the delayed disclosure of these agreements, which required the settling defendants to cooperate with the plaintiff, fundamentally altered the adversarial landscape and violated the strict requirement for immediate disclosure.

As a result, the action was permanently stayed.

The court also addressed, in obiter, the obligations of the Independent Supervising Solicitor regarding the production and accessibility of electronic documents seized under an Anton Piller Order.

The Trustee, KSV Restructuring Inc., sought substantive consolidation of the estates of ProEx Logistics Inc., Guru Logistics Inc., and 1542300 Ontario Inc., as well as authorization to accept claims by Paul Randhawa and to approve the Trustee’s reports.

The court granted substantive consolidation and approved the Trustee’s reports, but declined to authorize the Trustee’s acceptance of Paul’s claims, holding that the Bankruptcy and Insolvency Act provides a comprehensive code for the allowance and disallowance of claims, and that equity owners such as Rana Randhawa have no standing to challenge the Trustee’s decision to accept a claim.

The decision also addresses the effect of outstanding costs awards on standing and the finality of proceedings.

This motion concerned the approval of a sale process and transaction by The Fuller Landau Group Inc., acting as Receiver, for the Real Property owned by the Debtor, Chacon Strawberry Fields Inc. The Receiver sought approval for the sale, a vesting order, and an interim distribution to the first secured lender, First Source Financial Management Inc. The respondents (debtors) requested an adjournment and access to confidential sale information to facilitate a redemption, while a third-party (unsuccessful bidder) sought consideration of a late offer.

The court denied the respondents' and third-party's requests, finding their redemption plan insufficient and their attempts to interfere with the established sales process inappropriate.

The court granted the Receiver's motion in its entirety, approving the sale, vesting order, interim distribution, and a sealing order for commercially sensitive information, affirming the integrity and efficacy of the court-supervised sales process.

The plaintiff sought damages from the defendant, Economical Mutual Insurance Company, alleging a breach of contractual duty of honest performance in the denial of a mutual homeowners insurance policy.

The plaintiff claimed entitlement to a payment received by mutual policyholders during the company's demutualization process.

The court found that the plaintiff's application material did not meet the defendant's underwriting standards for a mutual policy, specifically regarding a two-family dwelling with a rented basement suite.

The court dismissed the plaintiff's claim, finding no breach of the contractual duty of honest dealings.