Ford Motor Co. of Canada Ltd. v. Municipal Employees Retirement Board (Ont.) et al., [2004] O.T.C. 53 (SC)

• Judge: Cumming, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: January 22, 2004
• Jurisdiction: Ontario
• Citations: [2004] O.T.C. 53 (SC)

Ford Motor Co. v. Retirement Bd., [2004] O.T.C. 53 (SC)

MLB headnote and full text

Temp. Cite: [2004] O.T.C. TBEd. JA.099

In The Matter Of Ford Motor Company of Canada Limited

And In The Matter Of an Application under section 190 of the Canada Business Corporations Act and section 185 of the Business Corporations Act (Ontario)

Ford Motor Company of Canada Limited (plaintiff) v. Ontario Municipal Employees Retirement Board and the persons set out in Schedules "A" and "B" (defendants)

Ontario Municipal Employees Retirement Board and the persons set out in Schedule "B" (plaintiffs by counterclaim) v. Ford Motor Company of Canada Limited and Ford Motor Company (defendants by counterclaim)

(Court File No. 98-CL-3075)

Indexed As: Ford Motor Co. of Canada Ltd. v. Municipal Employees Retirement Board (Ont.) et al.

Court of Ontario

Superior Court of Justice

Commercial List

Cumming, J.

January 22, 2004.

Summary:

This headnote contains no summary.

Company Law - Topic 2170

Shareholders - Shareholders' rights - To rectify oppressive or unfairly prejudicial act - See paragraphs 1 to 496.

Company Law - Topic 2173

Shareholders - Shareholders' rights - Repurchase of shares by company or majority shareholders - See paragraphs 1 to 496.

Company Law - Topic 5763

Sale of shares - Valuation - Basis for valuation - See paragraphs 1 to 496.

Company Law - Topic 9781

Actions against corporations and directors - Action for oppressive conduct - When available (incl. time for) - See paragraphs 1 to 496.

Company Law - Topic 9783

Actions against corporations and directors - Action for oppressive conduct - Persons entitled - See paragraphs 228 to 266.

Limitation of Actions - Topic 15

General principles - Discoverability rule - Application of - See paragraphs 273 to 279.

Limitation of Actions - Topic 9305

Postponement or suspension of statute - General - Discoverability rule - See paragraphs 273 to 279.

Cases Noticed:

Ford Motor Co. of Canada Ltd. v. Municipal Employees Retirement Board (Ont.) (1997), 104 O.A.C. 179; 36 O.R.(3d) 384 (C.A.), refd to. [para. 26].

Brant Investments Ltd. et al. v. KeepRite Inc. et al. (1987), 60 O.R.(2d) 737 (H.C.), affd. (1991), 45 O.A.C. 320; 3 O.R.(3d) 289 (C.A.), refd to. [para. 32].

New Quebec Raglan Mines Ltd. v. Blok-Andersen (1993), 9 B.L.R.(2d) 93 (Ont. Gen. Div.), refd to. [para. 32].

Ferguson v. Imax Systems Corp. (1983), 43 O.R.(2d) 128 (C.A.), refd to. [para. 215].

Westfair Foods Ltd. v. Watt (1991), 115 A.R. 34; 79 D.L.R.(4th) 48 (C.A.), refd to. [para. 215].

First Edmonton Place Ltd. v. 315888 Alberta Ltd., [1988] A.J. No. 511 (Q.B.), refd to. [para. 218].

Ballard v. Ballard Estate (1991), 3 B.L.R.(2d) 113 (Ont. Gen. Div.), affd. (1991), 50 O.A.C. 254 (Div. Ct.), refd to. [para. 220].

820099 Ontario Inc. v. Ballard (Harold E.) Ltd. - see Ballard v. Ballard Estate.

Naneff v. Con-Crete Holdings Ltd. et al. (1995), 85 O.A.C. 29; 23 O.R.(3d) 481 (C.A.), refd to. [para. 220].

Themadel Foundation et al. v. Third Canadian Investment Trust Ltd. (1998), 107 O.A.C. 188; 38 O.R.(3d) 749 (C.A.), refd to. [para. 220].

Pente Investment Management Ltd. et al. v. Schneider Corp. et al. (1998), 113 O.A.C. 253; 42 O.R.(3d) 177 (C.A.), refd to. [para. 221].

Maple Leaf Foods Inc. v. Schneider Corp. - see Pente Investment Management Ltd. et al. v. Schneider Corp. et al.

Sparling v. Javelin International Ltd., [1986] R.J.Q. 1073 (S.C.), refd to. [para. 225].

Downtown Eatery (1993) Ltd. v. Ontario et al. (2001), 147 O.A.C. 275; 54 O.R.(3d) 161 (C.A.), refd to. [para. 226].

LSI Logic Corp. of Canada Inc. v. Logani et al. (2001), 296 A.R. 201; 2001 ABQB 710 (Q.B.), refd to. [para. 228].

Hendin v. Cadillac Fairview Corp., [1983] O.J. No. 239 (H.C.), refd to. [para. 228].

Royal Trust Corp. for Canada v. Hordo (1993), 10 B.L.R.(2d) 86 (Ont. Gen. Div.), refd to. [para. 228].

Millgate Financial Corp. v. BF Realty Holdings Ltd. et al. (1997), 43 O.T.C. 308 (Gen. Div.), refd to. [para. 228].

PMSM Investments Ltd. v. Bureau (1995), 25 O.R.(3d) 586 (Gen. Div.), refd to. [para. 232].

Richardson Greenshields of Canada Ltd. v. Kalmacoff et al. (1995), 80 O.A.C. 98; 22 O.R.(3d) 577 (C.A.), refd to. [para. 232].

Jabalee v. Abalmark Inc., [1996] O.J. No. 2609 (C.A.), refd to. [para. 240].

Ontario Securities Commission v. McLaughlin (1988), 11 O.S.C.B. 442 (H.C.), refd to. [para. 240].

Palmer v. Carling O'Keefe Breweries of Canada Ltd. and Elders IXL Ltd. (1989), 32 O.A.C. 113; 67 O.R.(2d) 161 (Div. Ct.), refd to. [para. 241].

Silber et al. v. BGR Precious Metals Inc. (1998), 73 O.T.C. 26; 41 O.R.(3d) 147 (Gen. Div.), affd. (2000), 128 O.A.C. 372; 46 O.R.(3d) 255 (C.A.), refd to. [para. 243].

Shoom v. Great-West Lifeco Inc. et al. (1998), 67 O.T.C. 345; 42 B.L.R.(2d) 25 (Gen. Div.), affd. (1998), 116 O.A.C. 278; 42 B.L.R.(2d) 40 (C.A.), refd to. [para. 243].

Perlman v. Feldman (1955), 219 F.2d 173 (U.S. Ct. App., 2nd Cir.), refd to. [para. 257].

Donahue v. Rodd Electrotype Co. of New England Inc. (1975), 328 N.E.2d 505 (S.C.), refd to. [para. 257].

Meditrust Healthcare Inc. v. Shoppers Drug Mart et al. (2002), 165 O.A.C. 147; 61 O.R.(3d) 786 (C.A.), refd to. [para. 258].

Salomon v. Solomon, [1897] A.C. 22 (H.L.), refd to. [para. 258].

Regal (Hastings) Ltd. v. Gulliver, [1942] 1 All E.R. 378 (H.L.), refd to. [para. 258].

Abbey Glen Property Corp. v. Stumborg, Stumborg and Gem Holdings Ltd. (1978), 9 A.R. 234; 85 D.L.R.(3d) 35 (C.A.), refd to. [para. 258].

Superior Propane Inc. v. Tebby Engery Systems (1992), 9 O.R.(3d) 769 (Gen. Div.), refd to. [para. 267].

York Fire & Casualty Co. v. Co-operators, [1999] O.J. No. 4172 (Sup. Ct.), refd to. [para. 267].

Thomson v. Clanmorris (Lord), [1900] 1 Ch. 718 (C.A.), refd to. [para. 270].

Findlay v. Holmes (1998), 111 O.A.C. 319 (C.A.), refd to. [para. 272].

Central Trust Co. v. Rafuse and Cordon, [1986] 2 S.C.R. 147; 69 N.R. 321; 75 N.S.R.(2d) 109; 186 A.P.R. 109; 37 C.C.L.T. 117; 31 D.L.R.(4th) 481, refd to. [para. 272].

K.M. v. H.M., [1992] 3 S.C.R. 3; 142 N.R. 321; 57 O.A.C. 321; 96 D.L.R.(4th) 289, refd to. [para. 279].

Perry, Farley & Onyschuk v. Outerbridge Management Ltd. et al. (2001), 146 O.A.C. 144; 54 O.R.(3d) 131 (C.A.), refd to. [para. 280].

Smith (A.M.) & Co. v. R. (1981), 20 C.P.C. 126; 120 D.L.R.(3d) 354 (F.C.A.), refd to. [para. 282].

Statutes Noticed:

Canada Business Corporations Act, R.S.C. 1985, c. C-44, sect. 241 [para. 213].

Authors and Works Noticed:

Feinschreiber, R., Transfer Pricing Handbook (3rd Ed. 2001), vol. 1, p. 30.3 [para. 148].

Peterson, Dennis, Shareholder Remedies in Canada (1989), pp. 18.1 [paras. 212, 219]; 18.11 [para. 257]; 18.49 [para. 221].

Steiss, Carl F., and Blanchette, Luc, The International Transfer-Pricing Debate (1995), 43 Can. Tax J., No. 5, p. 1566 [para. 109].

United States, Department of the Treasury, A Study of Intercompany Pricing (1988), c. 11 [para. 149].

Welling, Bruce et al., Canadian Corporate Law (2nd Ed. 2001), p. 479 [para. 219].

Ulmer, Karen, Business Issues: The Oppression Remedy (1989), 53 Sask. L. Rev. 209, p. 219 [para. 224].

Counsel:

James A. Hodgson, Hugh M. DesBrisay and Jason Squire, for the plaintiff;

Francis J.C. Newbould, Q.C., Christopher D. Bredt and Benjamin T. Glustein, for the defendants.

This case was heard on April 29 and 30, May 1, 6-9, 13, 15, 16, 21-23, June 3-6, 10-13, 17-20, July 2 and 4, October 8-10, 15 and 16 and December 12, 13 and 16-19, 2002 and January 6-10, 13-17, 21 and 22, 2003, before Cumming, J., of the Ontario Superior Court, who released the following decision on January 22, 2004.

Please note: The following judgment has not been edited.