The Supreme Court Of Canada Will Hear Five Civil Appeals In December

• Published date: 02 December 2020
• Subject Matter: Litigation, Mediation & Arbitration, Trials & Appeals & Compensation, Civil Law
• Law Firm: Bennett Jones LLP
• Author: Mr Ranjan Agarwal, Ethan Schiff and Dylan Gibbs

The Supreme Court of Canada will hear five appeals in December that may interest the business community or organizations facing civil litigation.

• The Court will consider the Canada Revenue Agency's priority in bankruptcy proceedings in Canada v Canada North Group Inc., 2019 ABCA 314, a case involving proceedings under the Companies' Creditors Arrangement Act. The Alberta Court of Appeal upheld the Queen's Bench judge's decision that the CRA's statutory deemed trust for unremitted source deductions ranks below a court-ordered super-priority security interest that ensures payment of the professional fees necessary for restructuring.
• In 6362222 Canada Inc. v Prelco Inc., 2019 QCCA 1457, the Court will consider exclusion of liability clauses in civil law. The Québec Superior Court and the Court of Appeal declined to give effect to an exclusion of liability clause in a contract after the defendant failed to properly implement business management systems, harming the plaintiff. The Courts distinguished the theory of essential obligation at civil law from that of fundamental breach at common law, concluding that, even if the latter has been put to rest, the former lives on. We wait to see whether the Supreme Court of Canada will consider both theories in the appeal.
• Compagnie d'Assurances Générales Co-Operators c Coop Fédérée, 2019 QCCA 1678, will bring cybersecurity insurance policies before the Court. An insured was victim to a phishing attack causing fraudulent transfer of $4.9 million. One of the insured's two insurers, Co-operators General Insurance Company, denied coverage The Québec Superior Court ordered Co-operators to cover the claim and to compensate the second insurer, Liberty International Underwriters, for a proportional size of coverage. The Québec Court of Appeal allowed the appeal related to...