Sheila Block

The appellants, several local governments, appealed the dismissal of their application for declarations and injunctions against Canadian National Railway Company (CN) regarding the construction of an intermodal hub.

The appellants sought to compel CN to comply with over 65 provincial and municipal laws.

The application judge dismissed the application, finding that the majority of the claims lacked a factual foundation and were premature, and that the three specific bylaws at issue impaired the core of the federal railway undertaking under the doctrine of interjurisdictional immunity.

The Court of Appeal upheld the decision, confirming that the construction and operation of the intermodal hub is a vital part of a federal railway undertaking and that the municipal bylaws requiring official plan amendments impaired this core federal power.

The appeal and the application for leave to appeal costs were dismissed.

The respondent requested a correction to a costs endorsement, noting the judge had mistakenly written the fee total instead of the all-inclusive total of fees, taxes, and disbursements.

The applicants objected, arguing the endorsement was clear and the issue should be raised on cross-appeal since an appeal had already been commenced.

The court corrected the transposition error, amending the costs award to the intended all-inclusive amount of $2,288,314.57, noting the Court of Appeal would prefer the corrected outcome over a cross-appeal about a typo.

The defendant municipality brought a motion to strike the plaintiff bridge company's statement of claim, which sought contribution and indemnity for damages and legal costs arising from five nuisance actions brought by local residents.

The residents alleged that the plaintiff's boarded-up houses caused urban blight.

The plaintiff claimed the municipality unlawfully withheld demolition permits, causing the nuisance.

The court dismissed the motion to strike, finding it was not plain and obvious that the claim disclosed no reasonable cause of action, and that the action was not an abuse of process nor barred by issue estoppel.

The plaintiff was granted leave to amend its pleadings to better particularize misfeasance in public office and negligence.

The defendant, owner of the Ambassador Bridge, brought a motion to strike the jury notice in a nuisance action commenced by property owners in Old Sandwich Town.

The plaintiffs claimed the defendant unlawfully allowed properties it purchased to deteriorate, reducing property values.

The defendant argued that widespread negative, defamatory, and accusatory pre-trial publicity in Windsor regarding its conduct and motives made it impossible to find an impartial jury.

The court agreed, finding a real danger that the cumulative effect of over a decade of negative commentary could predispose jurors against the defendant.

The motion was granted and the jury notice was struck.

Various parties brought motions seeking reconsideration or clarification of a prior joint allocation decision determining the distribution of $7.3 billion in escrow among debtor estates in multinational insolvency proceedings.

The moving parties argued that aspects of the allocation methodology—including treatment of bond guarantee claims, certain asset sale proceeds, intercompany claims, tax claims, and settled claims—required amendment or clarification.

The court reiterated that reconsideration is an exceptional remedy and rejected most requests because the issues either had been addressed at trial or could have been raised earlier.

Limited clarification was granted regarding the treatment of bondholder claims against guarantors and recognition of certain court‑approved settled pre‑filing claims that had been paid.

Other requested clarifications or amendments were denied.

An employer sought declarations that a senior executive’s employment agreement requiring six months’ written notice of resignation was valid and enforceable.

The employee resigned and intended to join a competitor before the notice period expired, arguing the contract violated the Employment Standards Act, lacked consideration, functioned as an unlawful non‑compete, and that he had “Good Reason” to resign without notice.

The court rejected these arguments, finding the executive had accepted the promotion and contract, the notice provision did not breach the ESA, and the clause was not equivalent to a non‑competition covenant because the employee remained employed and paid during the notice period.

The employee also failed to establish a material alteration of duties or to comply with contractual procedures for asserting “Good Reason.” The court declared the contract binding and confirmed the six‑month notice period applied.

The plaintiffs sought leave under s. 138.3 of the Securities Act and certification under the Class Proceedings Act to pursue a class action against CIBC and its senior officers for alleged secondary market misrepresentations concerning CIBC's exposure to the U.S. residential mortgage market.

The court found that the plaintiffs met the test for leave and certification for the statutory claim.

However, applying the Court of Appeal's recent decision in Sharma v. Timminco Limited, the court held that the statutory claim was time-barred because leave was not obtained within the three-year limitation period under s. 138.14 of the Securities Act.

Consequently, both motions were dismissed.