2403177 Ontario Inc. v. Bending Lake Iron Group Ltd.

• Jurisdiction: Ontario
• Court: Court of Appeal (Ontario)
• Judge: D. Brown, J.A.
• Citation: 2016 ONCA 225,(2016), 347 O.A.C. 226 (CA)
• Date: 08 March 2016
• Subject Matter: BANKRUPTCY

2403177 Ont. v. Bending Lake Iron Group (2016), 347 O.A.C. 226 (CA)

MLB headnote and full text

Temp. Cite: [2016] O.A.C. TBEd. MR.032

2403177 Ontario Inc. (applicant/respondent/responding party) v. Bending Lake Iron Group Limited (respondent/appellant/responding party)

(M46061; C61637; 2016 ONCA 225)

Indexed As: 2403177 Ontario Inc. v. Bending Lake Iron Group Ltd.

Ontario Court of Appeal

D. Brown, J.A.

March 22, 2016.

Summary:

A receiver was appointed over the debtor's property under s. 243(1) of the Bankruptcy and Insolvency Act. The debtor's major asset was an undeveloped iron ore mine site. The debtor consented to a court-ordered Sales and Investor Solicitation Process for its property. The receiver obtained court approval for the sale of substantially all of the debtor's property. The debtor's motion to postpone the sale (and other relief) was dismissed. The debtor filed a notice of appeal to set aside the Approval and Vesting Order. The receiver moved for a declaration that the debtor required leave to appeal the Order (s. 193(e)).

The Ontario Court of Appeal, per Brown, J.A., held that the debtor required leave to appeal under s. 193(e).

Bankruptcy - Topic 6882

Practice - Appeals - When available - [See Bankruptcy - Topic 6888 ].

Bankruptcy - Topic 6888

Practice - Appeals - Leave to appeal - A receiver was appointed over the debtor's property under s. 243(1) of the Bankruptcy and Insolvency Act - The debtor's major asset was an undeveloped iron ore mine site - The debtor consented to a court-ordered Sales and Investor Solicitation Process for its property - The receiver obtained court approval for the sale of substantially all of the debtor's property to Legacy Hill - The debtor's motion to postpone the sale (and other relief) was dismissed - The debtor filed a notice of appeal to set aside the Approval and Vesting Order - The receiver moved for a declaration that the debtor required leave to appeal the Order (s. 193(e)) - The Ontario Court of Appeal, per Brown, J.A., held that the debtor required leave to appeal under s. 193(e) - There was an appeal as of right under s. 193(a) if future rights of those with an economic interest in the debtor were involved (they were not) or under s. 193(b) if the order was likely to affect other cases of a similar nature in bankruptcy proceedings (it was not) or under s. 193(c) if the property involved exceeded $10,000 in value - Although the value of the property exceeded $10,000, s. 193(c) did not apply to procedural orders, or orders that did not bring the value of property into play or orders that did not result in a loss - None of the three prerequisites for an appeal as of right under s. 193(c) were met - Accordingly, the debtor required leave to appeal under s. 193(e) - See paragraphs 9 to 70.

Cases Noticed:

Union Fire Insurance Co., Re (1886), 13 O.A.R. 268 (C.A.), refd to. [para. 20, footnote 1].

Catalina Exploration & Development Ltd., Re; Elias and Catalina Exploration & Development Ltd. v. Hutchison (1981), 27 A.R. 1; 14 Alta. L.R.(2d) 268; 121 D.L.R.(3d) 95 (C.A.), refd to. [para. 20, footnote 2].

Ravelston Corp., Re (2005), 24 C.B.R.(5th) 256 (Ont. C.A.), refd to. [para. 21, footnote 3].

Business Development Bank of Canada v. Pine Tree Resorts Inc. et al. (2013), 307 O.A.C. 1; 115 O.R.(3d) 617; 2013 ONCA 282, refd to. [para. 23, footnote 4].

Ditchburn Boats & Aircraft (1936) Ltd., Re (1938), 19 C.B.R. 240 (Ont. C.A.), refd to. [para. 25, footnote 5].

Kern Agencies Ltd., Re (1931), 12 C.B.R. 279 (Sask. C.A.), refd to. [para. 25, footnote 5].

Luu (Bankrupt), Re (2013), 348 B.C.A.C. 155; 595 W.A.C. 155; 2013 BCCA 547, refd to. [para. 32, footnote 6].

Norbourg Gestion d'actifs Inc., Re (2006), 33 C.B.R.(5th) 144; 2006 QCCA 752, refd to. [para. 32, footnote 7].

Global Royalties Ltd. et al. v. Brook et al. (2016), 344 O.A.C. 49; 2016 ONCA 50, refd to. [para. 32, footnote 8].

Perez et al. v. Salvation Army et al. (1998), 115 O.A.C. 328; 42 O.R.(3d) 229; 171 D.L.R.(4th) 520 (C.A.), refd to. [para. 36, footnote 9].

Kaiman Estate v. Graham Estate (2009), 245 O.A.C. 130; 2009 ONCA 77, refd to. [para. 36, footnote 10].

Moulton Contracting Ltd. v. British Columbia et al., [2013] 2 S.C.R. 227; 443 N.R. 303; 333 B.C.A.C. 34; 571 W.A.C. 34; 2013 SCC 26, refd to. [para. 38, footnote 11].

Rizzo & Rizzo Shoes Ltd. (Bankrupt), Re (1998), 221 N.R. 241; 106 O.A.C. 1; 154 D.L.R.(4th) 193 (S.C.C.), refd to. [para. 46, footnote 13].

Bell Expressvu Limited Partnership v. Rex et al. (2002), 287 N.R. 248; 166 B.C.A.C. 1; 271 W.A.C. 1; 212 D.L.R.(4th) 1; 2002 SCC 42, refd to. [para. 46, footnote 13].

Dominion Foundry Co., Re (1965), 51 W.W.R.(N.S.) 679 (Man. C.A.), refd to. [para. 46, footnote 14].

Faillis and Deacon v. United Fuel Investments Ltd., [1962] S.C.R. 771, refd to. [para. 46, footnote 15].

Deloitte Restructuring Inc. v. Fox et al., [2015] A.R. Uned. 19; 2015 ABCA 44, refd to. [para. 46, footnote 16].

Galaxy Sports Inc. (Bankrupt), Re (2003), 183 B.C.A.C. 192; 301 W.A.C. 192; 44 C.B.R.(4th) 218; 2003 BCCA 322, refd to. [para. 46, footnote 16].

Newfoundland and Labrador Refining Corp. (Bankrupt), Re (2009), 284 Nfld. & P.E.I.R. 53; 875 A.P.R. 53; 52 C.B.R.(5th) 8; 2009 NLCA 23, refd to. [para. 46, footnote 16].

Stelco Inc., Re (2005), 196 O.A.C. 260; 8 C.B.R.(5th) 150 (C.A.), refd to. [para. 47, footnote 19].

Royal Bank of Canada v. Soundair Corp. et al. (1991), 46 O.A.C. 321; 4 O.R.(3d) 1 (C.A.), refd to. [para. 52, footnote 20].

Edo (Canada) Ltd. (Bankrupt), Re (1997), 206 A.R. 295; 156 W.A.C. 295; 48 C.B.R.(3d) 171; 1997 ABCA 273, refd to. [para. 56, footnote 21].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 193 [para. 9].

Counsel:

Kenneth Kraft, for the moving party, A. Farber & Partners Inc.;

Robert MacRae, for the responding party, Bending Lake Iron Group Ltd.

This motion was heard on March 8, 2016, in Chambers, before D. Brown, J.A., of the Ontario Court of Appeal, who released the following endorsement on March 22, 2016.