Court Of Appeal Summaries (October 12, 2015 – October 16, 2015)

Hello Everyone,

There were two substantive civil law decisions from the Court of Appeal this week. One is but another chapter in the Nortel CCAA proceedings and whether certain bondholders are entitled to claim post-CCAA filing interest. The other is about a construction company that sued the City of Ottawa for declaratory relief for alleged breaches of the Occupational Health and Safety Act when asbestos was found at a job site.

Enjoy your weekend and Go Jays Go!

John Polyzogopoulos

Blaney McMurtry LLP

JPolyzogopoulos@blaney.com

Tel: 416.593.2953

http://www.blaney.com/lawyers/john-polyzogopoulos

Table of Contents

Civil Cases

Nortel Networks Corporation (Re), 2015 ONCA 681 (click on the case name to read the summary)

Keywords: Bankruptcy and Insolvency, Companies' Creditors Arrangement Act, Unsecured Claims, Bondholders, Post CCCA-filing interest, Interest Stops Rule, Canada 3000 (Re), Stelco (Re)

Curoc Construction Ltd. v. Ottawa (City), 2015 ONCA 693

Keywords: Statutory Cause of Action, Breach of a Statute, Occupational Health and Safety Act, s. 30(5), Declaratory Relief, Damages, Legal Costs, Administrative Costs, Summary Judgment, Genuine Issue Requiring a Trial, Rules of Civil Procedure, Rule 20.04(2)(a)

For a list of Criminal Law decisions, click here

Civil Cases

Nortel Networks Corporation (Re), 2015 ONCA 681

[Simmons, Gillese and Rouleau JJ.A.]

Counsel:

R. B. Swan, S. R. Orzy and G. H. Finlayson, for the appellant Ad Hoc Group of Bondholders A. Kent and B. Harrison, for the respondent The Bank of New York Mellon E. Lamek, for the respondent Law Debenture Trust Company of New York B. Zarnett and G. D. Smith, for the Monitor and the respondent Canadian Debtors K. D. Kraft and J. J. Salmas, for the respondent Wilmington Trust, National Association K. T. Rosenberg and A. N. Kaplan, for the respondent Canadian Creditors' Committee T. Wynne, for the Joint Administrators (EMEA) S. A. Bomhof and A. M. Slavens, for Nortel Networks Inc./U.S. Debtors

Keywords: Bankruptcy and Insolvency, Companies' Creditors Arrangement Act, Unsecured Claims, Bondholders, Post CCCA-filing interest, Interest Stops Rule, Canada 3000 (Re), Stelco (Re)

Facts:

This appeal represents another chapter in the Nortel proceeding under the CCAA. A parallel proceeding under Chapter 11 of the United States Bankruptcy Code has also been on-going in Delaware. The Ad Hoc Group of Bondholders (the "appellant") brings this appeal with leave. The group represents substantial holders of "crossover bonds", which are unsecured bonds either issued or guaranteed by certain of the Canadian Nortel entities. The relevant indentures provide for the continuing accrual of interest until payment, at contractually specified interest rates, as well as other post-filing payment obligations, such a make-whole provisions and trustee fees. In contrast, the claims of other claimants, such as Nortel pensioners and former employees, do not have a provision for interest on amounts owing to them. Holders of the crossover bonds have filed claims for principal and pre-filing interest in the amount of US$4.092 billion against each of the Canadian and U.S. Nortel estates. They also claim they are entitled to post-filing interest and related claims under the terms of the crossover bonds.

At a joint allocation trial, the CCAA judge heard arguments on two issues:

Whether the holders of the crossover bond claims are legally entitled ... to claim or receive any amounts under the relevant indentures above and beyond the outstanding principal debt and pre-petition interest (namely, above and beyond US$4.092 billion); and If it is determined that the crossover bondholders are so entitled, what additional amounts are such holders entitled to so claim and receive. The CCAA judge answered the first question in the negative, and so he did not need...