Publications
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Sale by judicial authority: conflict of interest rules governing the designation of the officer entrusted with the sale
Recently, the Superior Court rendered a decision1 which clarifies the extent of the discretion a court has when asked to ratify a hypothecary creditor's recommendation to appoint an employee of its legal counsel to act as the officer of the court entrusted with the sale by judicial authority of the (…)
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Employers: to what extent can you control your employees’ physical appearance?
It is generally understood that an employer has the authority to manage and control its employees to ensure its business runs smoothly. In exercising such authority, an employer can adopt and implement policies that govern how employees perform their work. In certain circumstances, an employer can (…)
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The Supreme Court rules in Indalex: DIP lenders rank ahead of pension beneficiaries in CCAA Restructuring
On February 1, 2013, the Supreme Court overturned a controversial decision of the Ontario Court of Appeal which granted pension beneficiaries priority over DIP lenders in the context of a restructuring under the Companies’ Creditors Arrangement Act (“CCAA”).1 The Court of (…)
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The Court of Appeal confirms that the policyholder and the insurer may agree to modify the provisions of a group insurance contract without consulting the participants
The decision of the Court of Appeal in the La Capitale case has been expected since February 2012 when the Superior Court dismissed the class action taken against an insurer who, with the consent of the policyholder, had unilaterally modified the waiver of premiums clause in a group insurance (…)
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Eric and Lola : The Supreme Court rules on the rights of de facto spouses in Quebec
It is not surprising that there has been so much discussion and debate surrounding the saga of Eric and Lola in the past few years. Indeed, this litigation raises issues that directly affect a large number of Quebec couples who live in de facto unions. The legal issues raised pit two competing (…)
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An analysis of constructive dismissal in the context of a business acquisition
The Courts have considered the concept of constructive dismissal on many occasions. Generally, the expression “constructive dismissal” refers to situations in which an employee does not agree to a substantial change made unilaterally by his employer to one or more essential terms of his employment (…)
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Legal hypothecs for construction and the enforcement of contractual rights: The Superior Court condemns the use of the land registry as a means for intimidation
On September 21, 2012, Justice Babin of the Superior Court of Québec rendered a decision which denotes the effect of bad faith of the registrant on damages awards in the context of the unjustified publication of a legal hypothec for construction.1While the decision serves as a useful reminder that a (…)
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TSX amends director election rules and proposes a majority voting requirement
Issues surrounding the election of directors of public companies gained the attention of Canadian securities regulators in the last years due to concerns expressed by large institutional investors that current Canadian rules regarding the election of directors were not democratic nor aligned with (…)
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Hypothecary Claims, Factoring and Priorities
In a recent decision, the Superior Court ruled in favour of GE, Commercial Distribution Finance Canada ('GE') in a dispute against the National Bank of Canada ('NBC'). Both institutions had a common client, New World Zanotti Transblock Inc. ('Zanotti'), which had granted to each of them a hypothec (…)
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The Metron Construction Corp. Case: Another conviction for criminal negligence in the area of occupational health and safety
Since the adoption of Bill C-45 amending certain provisions of the Criminal Code in March of 2004, employers have had to take on increased responsibility in the area of occupational health and safety. Indeed, the effect of sections 22.1 and 217.1 of the Criminal Code is to facilitate the laying of (…)
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CCAA: Is the termination of employment contracts subject to section 32 CCAA?
On August 30, 2011, Hart Stores Inc./Magasins Hart inc. (hereinafter 'Hart'), filed for protection under the Companies' Creditors Arrangement Act (hereinafter the 'CCAA'). As part of the restructuring, Hart closed down 32 out of 92 points of sale and laid off 640 out of 1,600 employees. Included in (…)
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Creditors suspected of wishing to eliminate a competitor: The Court refuses to annul their votes against a plan of arrangement
On May 14, 2012, the Honourable Normand Gosselin, J.S.C., ruled on an amended motion seeking the sanction of a plan of arrangement concerning a debtor, Norgate Métal Inc. ('Norgate'). The judgment is special in that Norgate asked the Court to annul some of the votes that had been cast against the (…)