Tim Gleason

In ongoing Companies’ Creditors Arrangement Act proceedings, the applicants sought advice and directions regarding the application of a directors’ and officers’ liability insurance policy issued by the insurer.

The dispute concerned whether a US$10 million retention applied to defence costs incurred by executives facing claims arising from alleged pre‑filing misconduct.

The applicants argued that the CCAA stay prevented the company from indemnifying the executives, thereby triggering the policy’s non‑indemnifiable loss provisions and eliminating the retention requirement.

The court held that the indemnity obligation was a pre‑filing obligation and that the stay prevented payment, rendering the loss non‑indemnifiable within the meaning of the policy.

As a result, the insurer was required to respond to the executives’ losses without reference to the retention.

The appellant, an Ontario lawyer, appealed a summary judgment recognizing and enforcing an Italian court judgment against him for professional misconduct in a failed joint venture.

The Court of Appeal applied the Van Breda test, finding that the tort was committed in Italy, which established a presumptive real and substantial connection.

The court also dismissed the appellant's arguments regarding a denial of natural justice and fraud on the foreign court, noting he had notice of the allegations but chose not to participate in the Italian proceedings.

The appeal was dismissed.

The plaintiff brought a motion for summary judgment against the defendant to enforce a debt obligation under a promissory note.

The defendant admitted to signing the note and acknowledging the debt but raised a defence of duress during cross-examination, which was not pleaded.

The court applied the full appreciation test under Rule 20 and found no genuine issue requiring a trial, as the defendant's evidence did not support a finding of operative duress.

Summary judgment was granted in favour of the plaintiff for the acknowledged debt amount.

Following a successful motion by the defendant to enforce a settlement agreement dismissing the action without costs, the court determined the appropriate costs of the motion.

The court found the motion had been unnecessary because the plaintiff provided no affidavit evidence explaining or disputing the settlement offer made by counsel.

While the defendant sought higher costs, the court declined to award costs on a substantial indemnity basis.

Instead, costs were fixed on a partial indemnity scale.

The court ordered the plaintiff to pay the defendant $2,700 all-inclusive.

The defendant brought a motion to enforce a settlement agreement and dismiss the plaintiff’s solicitor’s negligence action without costs.

The defendant argued that the plaintiff’s counsel had authority to offer a settlement dismissing the action without costs and that the defendant accepted the offer, but the plaintiff later refused to execute the consent dismissal.

The court applied the principles governing settlements reached by counsel and found that the plaintiff’s lawyer had authority to bind the client and that all essential terms of the settlement had been agreed upon.

The plaintiff provided no affidavit evidence disputing the instructions given to counsel or explaining why the settlement should not be enforced.

The court concluded that a binding settlement existed and ordered the action dismissed in accordance with the settlement.

The applicant sought judicial review of an arbitrator's preliminary ruling that section 54 of the Labour Relations Act applies to all collective agreements in Ontario.

The arbitrator had not yet decided the ultimate question of whether mandatory retirement prior to amendments to the Human Rights Code was unlawful.

The Divisional Court quashed the application as premature, emphasizing that courts should not entertain applications prior to the completion of proceedings to avoid fragmented proceedings and unnecessary delay.

The arbitrator must rule on all issues before judicial review is appropriate.