Walter Energy Canada Holdings, Inc. (Re)

Walter Energy Canada Holdings, Inc. (Re)

The court dismissed the 1974 Plan's application for broad document production because the requests were not sufficiently targeted and the Plan failed to show Walter Energy had sole possession or control of documents originating with U.S. entities; the court also dismissed the application to strike the expert report, allowed Walter Energy to proceed with its proposed summary hearing on threshold issues, and awarded party-and-party costs against the 1974 Plan to Walter Energy and the Union.

Citation
2016 BCSC 2470
Parties
Petitioner: Walter Energy Canada Holdings, Inc.; Applicant / Claimant: United Mine Workers of America 1974 Pension Plan and Trust; Opposing Creditor / Intervenor: United Steel Workers, Local 1-424; Monitor: KPMG
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
2 December 2016
Procedural Posture
Companies' Creditors Arrangement Act (ccaa) Proceedings / Pre Summary Hearing Applications Concerning Document Disclosure and Motion to Strike Expert Report; Interlocutory Directions Issued Pending Summary Determination Scheduled January 2017
Outcome
1974 Plan's document disclosure application dismissed; application to strike Marc Abrams' expert report dismissed; Walter Energy permitted to proceed with its summary hearing application; costs awarded to Walter Energy and the Union against the 1974 Plan.
Legal Topics
Document Disclosure, Expert Evidence, Choice of Law, Extraterritorial Application of ERISA, CCAA Claims Adjudication, Costs
Source Language
English
Insolvency Corporate Law Conflict of Laws Pension Law Civil Procedure Evidence and Discovery Document Disclosure Expert Evidence +4 more

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Parties

Walter Energy Canada Holdings, Inc.

Petitioner

United Mine Workers of America 1974 Pension Plan and Trust

Applicant / Claimant

United Steel Workers, Local 1-424

Opposing Creditor / Intervenor

KPMG

Monitor

Procedural Posture

Companies' Creditors Arrangement Act (ccaa) Proceedings / Pre Summary Hearing Applications Concerning Document Disclosure and Motion to Strike Expert Report; Interlocutory Directions Issued Pending Summary Determination Scheduled January 2017

Legal Issues

  1. 1 Whether Walter Energy must disclose extensive documents allegedly in its possession or control including materials originating from U.S. group entities
  2. 2 Whether Marc Abrams' expert report should be struck
  3. 3 Whether a summary hearing is appropriate to determine threshold legal issues including choice of law and extraterritoriality of ERISA

Ratio Decidendi

The court dismissed the 1974 Plan's application for broad document production because the requests were not sufficiently targeted and the Plan failed to show Walter Energy had sole possession or control of documents originating with U.S. entities; the court also dismissed the application to strike the expert report, allowed Walter Energy to proceed with its proposed summary hearing on threshold issues, and awarded party-and-party costs against the 1974 Plan to Walter Energy and the Union.

Court Disposition

1974 Plan's document disclosure application dismissed; application to strike Marc Abrams' expert report dismissed; Walter Energy permitted to proceed with its summary hearing application; costs awarded to Walter Energy and the Union against the 1974 Plan.

Orders

  • Dismissal of the 1974 Plan's application for document disclosure (paragraph 2 of its notice of application)
  • Dismissal of the 1974 Plan's application to strike the expert report of Marc Abrams (written reasons to follow)