Court Of Appeal Summaries (December 27-31, 2021)

• Published date: 04 January 2022
• Subject Matter: Finance and Banking, Litigation, Mediation & Arbitration, Insolvency/Bankruptcy/Re-structuring, Debt Capital Markets, Financial Services, Financial Restructuring, Insolvency/Bankruptcy, Class Actions, Trials & Appeals & Compensation
• Law Firm: Blaney McMurtry LLP
• Author: Mr John Polyzogopoulos

Good afternoon.

Following are this week's summaries of the Court of Appeal for Ontario for the week of December 27, 2021. There were only two substantive civil decisions released this week.

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In Shaver-Kudell Manufacturing Inc. v. Knight Manufacturing Inc., the Court clarified that for a debt to survive bankruptcy under ss. 178(1)(e) of the Bankruptcy and Insolvency Act, the debt claimed by the creditor in the bankruptcy must have arisen as a result of property or services obtained by the bankrupt by way of false pretences or fraudulent misrepresentation. The debt in this case arose out of the misappropriation of the creditor's trade secrets and confidential information. While such conduct may have been morally or commercially reprehensible, it fell short of the definition in ss. 178(1)(e), and therefore the debt did not survive bankruptcy.

The second decision, Fontaine v. Canada (Attorney General), is yet another decision in the ongoing dispute regarding the residential school class action settlement.

Wishing you all a healthy, happy and prosperous New Year!

John Polyzogopoulos
Blaney McMurtry LLP
416.593.2953 Email

Table of Contents

Civil Decisions

Shaver-Kudell Manufacturing Inc. v. Knight Manufacturing Inc. , 2021 ONCA 925

Keywords: Bankruptcy and Insolvency, Proposals, Assignments in Bankruptcy, Automatic Stay of Proceedings, Lifting of Stay, Debts Surviving Bankruptcy, Property or Services Obtained by False Pretences or Fraudulent Misrepresentation, Statutory Interpretation, Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, ss. 69(1), 69.3(1), 69.4 & 178(1)(e), Criminal Code, R.S.C. 1985, c. C-46, ss. 361 & 362, Shaver-Kudell Manufacturing Inc. v. Knight Manufacturing Inc. et al, 2018 ONSC 5206, Canada Trustco Mortgage Co. v. Canada, 2005 SCC 54, Bell ExpressVu Limited Partnership v. Rex, 2002 SCC 42, Therrien (Re), 2001 SCC 35, Celanese Canada Inc. v. Murray Demolition Corp., [2010] O.J. No. 6347 (S.C.), H.Y. Louie Co. Limited v. Bowick, 2015 BCCA 256, 386 D.L.R. (4th) 117, Szeto (Re), 2014 BCSC 1563, Water Matrix Inc. v. Carnevale, 2018 ONSC 6436, 65 C.B.R. (6th) 109, Buland Empire Development Inc. v. Quinto Shoes Imports Ltd. et al. (1999), 123 O.A.C. 288 (C.A.), Cruise Connections Canada v. Szeto, 2015 BCCA 363, Montréal (City) v. Deloitte Restructuring Inc., 2021 SCC 53, Ste. Rose & District Cattle Feeders Co-op v. Geisel, 2010 MBCA 52, Bruno Appliance and Furniture, Inc. v. Hryniak, 2014 SCC 8, Simone v. Daley (1999), 43 O.R. (3d) 511, Fiorito v. Wiggins, 2017 ONCA 765, Elmer Driedger, Construction of Statutes, 2nd ed. (Toronto, Ont.: Butterworths, 1983)

Fontaine v. Canada (Attorney General) , 2021 ONCA 931

Keywords: Civil Procedure, Appeals, Extension of Time, Mootness, Courts of Justice Act, R.S.O. 1990, c. C. 43, ss. 7(3) & 7(5), Obermueller v. Kenfinch Cooperative Housing Inc., 2016 ONCA 21, Willenbrecht v. Willenbrecht (1999), 120 O.A.C. 274, Borowski v. Canada (Attorney General), [1989] 1 S.C.R. 342, Doucet-Boudreau v. Nova Scotia (Minister of Education), 2003 SCC 62

CIVIL DECISIONS

Shaver-Kudell Manufacturing Inc. v. Knight Manufacturing Inc.,2021 ONCA 925

[Strathy C.J.O., Zarnett J.A. and Wilton-Siegel J. (ad hoc)]

Counsel:

I. Klaiman, for the appellant

C. Hammond, for the respondent

Keywords: Bankruptcy and Insolvency, Proposals, Assignments in Bankruptcy, Automatic Stay of Proceedings, Lifting of Stay, Debts Surviving Bankruptcy, Property...