Canadian Appeals Monitor Information and Commentary on Upcoming and Recent Appeal Court Decisions

Monthly Archives: September 2011

Will Your Companies’ Creditors Arrangement Act Superpriority Still Be that Super once the Scheme of Collocation is Drawn Up?

By Rachel Laferriere on Posted in Bankruptcy and Debt, Case Comments, Construction and Real Estate, Financial Services

In the context of an arrangement plan pursuant to the Companies’ Creditors Arrangement Act, a financial institution was granted a superpriority on all moveable and immoveable debtors’ assets following an additional $2,150,000 loan to the debtor, in order to allow it to complete some construction projects it had already started and for which it already owed… → Read More

SCC to Reconsider the “Material Contribution” Test for Causation

By Brandon Kain on Posted in Case Previews, Class Actions, Professions, Torts

The Supreme Court of Canada has granted leave in an appeal that may significantly limit liability in tort.  The case, Clements v. Clements, will require the Court to reconsider the “material contribution” test for causation, and in particular, whether it should be restricted to two narrow situations. Decisions Below In the judgment below, Clements (Litigation Guardian of) v. Clements, the British Columbia Court of… → Read More

FCA to Consider Deductibility of Contributions to a Sickness and Accident Insurance Plan for Single Employee

By Jeffrey Love on Posted in Case Previews, Tax

Are contributions to a particular sickness and accident insurance plan for a single employee deductible for tax purposes?  The Federal Court of Appeal will decide that issue when it hears the taxpayer’s appeal in Labow v. R. in Ottawa on October 4th. The taxpayer, Dr. Labow, is a surgeon and professor of surgery. With the help… → Read More

OCA to Consider Contractual Termination Right Due to Tarnished Reputations

By Adam Ship on Posted in Case Previews, Contracts, Media

The Ontario Court of Appeal will consider whether a party to a sponsorship agreement can terminate the agreement where the counterparty suffers a loss of public reputation. This case involved a sponsorship relationship between the Canadian Soccer Association and Hyundai Auto Canada Corporation. Hyundai agreed to be a sponsor of the Association, agreeing to pay… → Read More

OCA to Consider ESA Obligations In CCAA Proceedings

By Adam Ship on Posted in Bankruptcy and Debt, Case Previews, Labour and Employment

The Court of Appeal will be called upon to determine whether Employment Standards Act obligations, such as termination and severance pay, can be discharged by a Debtor-in-Possession in a CCAA proceeding. In Windsor Machine, Justice Morawetz heard an application by the union representing the employees of a debtor company. The debtor company had terminated all… → Read More

Is “Prejudice” in Security for Costs Only One Factor to Consider?

By Curtis E. Marble on Posted in Case Comments, Procedure

The Alberta Court of Appeal’s decision, denying leave to appeal in Autoweld Systems Ltd. v. CRC-Evans Pipeline International Inc., provides authority for maintaining a security for costs order against a company with few assets. This decision will prove a useful authority to clients wishing to stop litigation where the plaintiff is a party unable to pay a costs… → Read More

FCA to Review Discretion to Decline Band Members Retroactive Tax Relief

By Daniel G.C. Glover on Posted in Aboriginal, Administrative, Case Previews, Tax

On September 1, the Attorney General of Canada appealed the finding of the Federal Court in Abraham v. Canada, that the Minister of National Revenue had erred in denying members of the Sagkeeng Band tax relief on wages earned while working in a mill located on former reserve lands. The Band members had contended that relief was due… → Read More