Canada Case Law

Urbancorp Toronto Management Inc. (Re)

Court

Court of Appeal for Ontario

Leave to appeal was dismissed because the proposed grounds were not prima facie meritorious; the Supervising Judge correctly applied Chandos by finding the Transfer Provision is triggered by transfer of the lease not insolvency and therefore did not offend the anti-deprivation or pari passu rules; the contractual interpretation awarding $2.049 million to KTNI was within discretion and entitled to deference.

Source excerpt

• Anti-deprivation rule
• Pari passu rule
• Contract interpretation
• Distribution of sale proceeds
• Ccaa s.13 leave to appeal

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Chandos Construction Ltd. v. Deloitte Restructuring Inc.

Court

Supreme Court of Canada

The Supreme Court of Canada held that clause VII Q(d) in the subcontract was void under the anti-deprivation rule because it was triggered by bankruptcy and removed value from the estate.

• Anti-deprivation rule
• Pari passu rule
• Set-off
• Liquidated damages vs penalty
• Ipso facto clauses
• Anti-deprivation-rule

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