Earlier this fall, the Supreme Court of Canada (“SCC”) released its decision in Chandos Construction Ltd. v. Deloitte Restructuring Inc. (“Chandos”) . The SCC agreed with the Alberta Court of Appeal in holding that a price-reduction clause in a subcontract between Chandos and the bankrupt subcontractor violated the common law anti-deprivation rule. Chandos, a general […]
On December 30, 2019 the Supreme Court of Newfoundland and Labrador (the “NLSC”) released its decision in Re Norcon Marine Services Ltd. (“Norcon”) dismissing both an application by a debtor, Norcon Marine Services Ltd., for creditor protection under the Companies’ Creditors Arrangement Act (the “CCAA”), and a competing application by a secured creditor, the Business […]
It has been said that nothing in this world is certain, other than death and taxes. Whether any given tax is ‘certain’ can be debated (our tax team is here to help), but the Federal Court of Appeal has weighed in on the priority of certain tax claims in Toronto-Dominion Bank v. Canada, 2020 FCA […]
Right of Distress “Distress”, when used in this context, means the seizure of someone’s property to secure the performance of a duty. A landlord’s right of distress is a useful self-help remedy that allows a landlord to enforce its rights against a delinquent tenant under certain circumstances. When performed properly, it allows the landlord to […]
The Supreme Court of Canada (“SCC”) released its decision in Orphan Well Association v Grant Thornton Ltd., 2019 SCC 51 (“Redwater”) on January 31, 2019. The case is expected to have sweeping implications for the Oil and Gas industry in Alberta, but the implications extend beyond that industry, and beyond that province. Background In Redwater, […]
Courts and lawmakers often refer to Canada Revenue Agency (“CRA”) as an involuntary creditor when businesses fail to make required tax payments to the governmental authority. The timely collection of taxes and payroll deductions also plays a fundamental role in the financing of government.