Bankruptcy — Ontario Employment Law

1001270243 Ontario Inc.

CCAA: ResidualCo as Former Employer under WEPPA

A procedural application in CCAA proceedings seeking declarations on whether a residual company qualifies as a 'former employer' under the Wage Earner Protection Program Act (WEPPA) following a reverse vesting transaction. The court determined that the residual company was the former employer and granted declarations under the relevant statutes to facilitate employee wage claims.

YG Limited Partnership and YSL Residences Inc. (Re)

Employee Profit-Share is Contract Damages, Not Equity Claim

An appeal to the Court of Appeal from an order of the Superior Court of Justice concerning an employee's profit-sharing claim in a bankruptcy proposal. Maria Athanasoulis claimed $18 million for breach of a profit-sharing agreement. The Trustee disallowed the claim as an equity claim and too contingent. The appeal judge reversed this, finding it was an unliquidated claim for damages for breach of an employment contract. The Court of Appeal upheld the appeal judge's decision, dismissing the appeals of the Trustee and limited partners.

In the Matter of the Proposal of Metroland Media Group Ltd.

Employee Rep in Insolvency: Metroland Media

This is an interlocutory proceeding regarding the appointment of Representative Counsel and an ad hoc committee to represent non-unionized employees of Metroland Media Group Ltd. during insolvency proceedings. The court addressed whether such representation was necessary to protect vulnerable stakeholders' claims for severance, pension, and benefits, and whether personal information could be disclosed to counsel under PIPEDA. The court also determined that the debtor should bear the reasonable legal costs of the Representative Counsel.

YG Limited Partnership (Re)

Bankruptcy: Wrongful Dismissal & Profit Share Claims

This is a procedural ruling in bankruptcy proceedings concerning the provability and valuation of claims under the Bankruptcy and Insolvency Act. The case addresses whether oral profit-sharing agreements are enforceable and whether wrongful dismissal damages constitute provable claims, as well as the procedural standard for appealing the Proposal Trustee's determination.

P. v. P.

P. v. P.: Oppression Claim and Wrongful Dismissal

This was an appeal to the Court of Appeal from a trial judge's decision in a breach of contract and oppression action. The employee sold his business and entered an employment contract with the buyer's company, which quickly went bankrupt after the employee was dismissed. The trial judge found the employee was wrongfully dismissed but held that the claim could only be pursued in bankruptcy because the contract was with the bankrupt company. The Court of Appeal upheld the dismissal of the employment claim, agreeing there was no oppressive conduct linked to the dismissal, but allowed the appeal in part to award $750,000 for the unpaid share purchase price under the commercial agreement.

P. v. P.

Wrongful Dismissal: Claim Dismissed Due to Defendant Bankruptcy

This is a wrongful dismissal case where the plaintiff was dismissed from DMT without cause. The court found the dismissal to be wrongful but dismissed the claim for damages against the named defendants due to their bankruptcy.

Northwestern Veterinary Professional Corporation v. B.

Employee Misappropriation: Non-Dischargeable Debt in Bankruptcy

This case addresses whether a former employee breached fiduciary duties by misappropriating $37,643.99 in unauthorized refunds. The court established fiduciary liability and declared the resulting debt non-dischargeable in bankruptcy under s. 178(1)(d) of the Bankruptcy and Insolvency Act. Punitive damages were denied to avoid prejudice to potential criminal proceedings, but costs were awarded and also declared non-dischargeable.

Romspen Investment Corporation v. Courtice Auto Wreckers Limited

Bankruptcy Stay vs. Union Certification Appeal

This is an appeal regarding the intersection of federal bankruptcy law and provincial labour law, specifically whether a stay of proceedings under a receivership order should be lifted to allow a union to proceed with a certification application and unfair labour practice complaint. The court balanced the prejudice to creditors against the employees' statutory labour rights under the Labour Relations Act, 1995.

M. v. Ornge Corporate Services Inc.

Common Employer Doctrine: Release Precludes Liability

This is an appeal to the Court of Appeal from a motion judge's summary judgment decision dismissing a former employee's wrongful dismissal and conspiracy claims. The employee sued affiliated companies of his bankrupt former employer, arguing they were jointly liable as common employers. The motion judge dismissed the claims, finding no evidence for the common employer argument and noting the employment contract released affiliated companies from liability. The Court of Appeal dismissed the appeal, agreeing that the employment agreement precluded the common employer claim and the conspiracy claim was an improper collateral attack on the bankruptcy process. The employee's claims remain dismissed.

W. v Vogel of Canada

Wrongful Dismissal: Costs Awarded Despite Defendant's Bankruptcy

This is a costs ruling in a wrongful dismissal case where the plaintiff was awarded costs after successfully suing the defendant. The court addressed whether costs should be reduced due to the use of the simplified procedure and whether a bankruptcy stay prevented the enforcement of the costs order, ultimately fixing costs at $73,000.

Grant Forest Products Inc. v. The Toronto-Dominion Bank

CCAA Stay Lifted: Bankruptcy Priority Trumps Pension Trust

This is an appeal to the Court of Appeal from a CCAA judge's transition order that lifted a stay of proceedings and ordered the debtor companies into bankruptcy. The Superintendent of Financial Services appealed, arguing that wind-up deemed trusts under the Pension Benefits Act had priority over secured creditors' claims. The CCAA judge had ordered the companies into bankruptcy without requiring payment of the pension deficits. The Court of Appeal dismissed the appeal, holding that once bankruptcy was ordered, the federal Bankruptcy and Insolvency Act scheme rendered the provincial deemed trusts inoperative.

C. v. S.

Fiduciary Duty & Fraud: Employee Misappropriation

This case addresses whether a former bookkeeper and office manager breached her fiduciary duty and committed fraud by misappropriating corporate funds for personal benefit. The court also determined that the defendant was not entitled to a claimed verbal salary agreement and awarded punitive damages for her high-handed misconduct. Finally, the court held that the judgment for fraud and misappropriation was not released by the defendant's bankruptcy discharge under the Bankruptcy and Insolvency Act.

F. v. 4358376 Canada Inc.

F. v. 4358376 Canada Inc. - Attornment on Jurisdiction

This was an appeal to the Court of Appeal from a motion judge's decision on jurisdiction. An employee originally sued corporate defendants for wrongful dismissal; the defendants moved to stay the action, citing a jurisdiction clause directing disputes to England. The employee then added individual corporate officers and directors as defendants, but before the jurisdiction motion was heard, the corporate defendants went into receivership. The individual defendants amended their motion to request a temporary stay, arguing they needed the corporate defendants present to resolve jurisdiction; the motion judge ruled this request constituted an attornment to Ontario jurisdiction. The Court of Appeal allowed the appeal, finding that procedural steps regarding how to hear a jurisdiction motion do not amount to attornment, but dismissed the request for a temporary stay since the corporate defendants were unlikely to return from bankruptcy.

B. v. IQT, Ltd.

Class Action Wrongful Dismissal: Particulars Motion

This is an interlocutory procedural motion in a class action lawsuit alleging wrongful dismissal against IQT Ltd. and related defendants. The court addressed whether plaintiffs were entitled to particulars of the defendants' statement of defence, ruling that particulars are not required if they serve merely as pre-discovery evidence gathering. The case also touches on the impact of the defendant's bankruptcy on the class action and allegations of piercing the corporate veil.

K. v. H. et al

This is a procedural or substantive ruling in a matter involving employment law issues within a bankruptcy context. The keywords indicate the intersection of employment claims and insolvency proceedings, likely concerning the priority or enforceability of employee claims against a bankrupt employer.

Re: Canwest Global Communications Corp.

CCAA Stay of Severance and Termination Pay Claims

This is an interlocutory ruling concerning the application of the Companies' Creditors Arrangement Act (CCAA) to employee severance and termination pay obligations. The court addressed whether pre-filing severance claims are stayed and subject to compromise as unsecured claims, and whether post-filing incremental severance obligations are excluded from the stay.

S. v. Nortel Networks Corporation

Nortel CCAA Stay: Severance Pay for Former Employees

This is an appeal concerning whether a stay of proceedings under the Companies' Creditors Arrangement Act (CCAA) overrides an employer's obligations to pay severance and other benefits to unionized former employees. The Court of Appeal for Ontario held that the CCAA stay provisions apply to these obligations, as they were deemed deferred compensation for pre-filing services rather than protected post-filing claims.

Windsor Machine & Stamping Limited (Re)

CCAA: Termination & Severance Pay Priority

This is a procedural and substantive ruling in CCAA proceedings concerning the treatment of termination and severance pay claims for employees terminated post-filing. The court addressed whether such claims are subject to stay provisions under the CCAA and whether secured creditors' priority should be recognized over these unsecured employment claims.

Textron Financial Canada Limited v. Beta Limitee/Beta Brands Limited

Vacation Pay Priority in Bankruptcy: BIA vs ESA

This is a procedural and substantive ruling in a bankruptcy and insolvency proceeding concerning the priority of claims for vacation pay owed to employees. The court determined that the Bankruptcy and Insolvency Act (BIA) prevails over provincial Employment Standards Act (ESA) deemed trusts and statutory liens, meaning vacation pay claims do not rank ahead of a secured creditor's perfected security interest.

Peoples Trust Company v. Paragon Health Care Inc.

This is a procedural motion regarding leave to sue a receiver for wrongful dismissal claims brought by former employees of an insolvent company. The court addressed whether the receiver's actions constituted a termination of employment contracts, the validity of post-receivership employment agreements, and the interpretation of liability exemptions under the Bankruptcy and Insolvency Act and the Ontario Employment Standards Act.