Banking, Bankruptcy & Insolvency
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April 10, 2024
Ontario Court of Appeal orders borrower to pay $326,500 balance of lender fee despite failed loan
The Ontario Court of Appeal has ruled that a commercial developer must pay $326,500 in lender fees for a failed loan transaction, overturning a lower court decision that the lender was not entitled to the amount since it was payable under an unenforceable penalty clause.
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April 05, 2024
SCC rules ‘fraud exception’ bars Canadian bank from making payment demanded under letter of credit
Elaborating on the “fraud exception” to a bank’s obligation to pay on demand under a letter of credit, the Supreme Court of Canada has affirmed 7-2 that a Canadian bank was required to refuse payment to a letter of credit beneficiary due to a third party’s fraudulent behaviour, which was also attributable to the beneficiary.
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April 03, 2024
Federal Court: Unsecured creditors must pay deemed trust proceeds to Crown
An unsecured creditor who received proceeds from the sale of property subject to a deemed trust under the Income Tax Act (ITA) is required to pay those proceeds to the Crown, the Federal Court has found.
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March 26, 2024
Small firms borrowing to refinance COVID loans, says business group
An estimated 23 per cent of small businesses in Canada have had to borrow money to refinance their Canada Emergency Business Account (CEBA) loans to maintain access to the forgivable portion, according to a survey by the Toronto-based Canadian Federation of Independent Business (CFIB).
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March 22, 2024
Appeal court finds 'miscarriage of justice' in $2 million fraud case, orders new trial
The Ontario Court of Appeal has allowed an appeal in a case where the appellants claimed $2 million against the respondent for an alleged accounting fraud that involved deleting records of money owed and reversing who the money was owed to.
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March 19, 2024
Equifax: business insolvencies, delinquencies rise as businesses face loan repayments, high costs
Canadian businesses face increasing financial pressure with interest payments on outstanding Canada Emergency Business Account (CEBA) loans, high interest rates and a slowdown in consumer spending contributing to a surge in business insolvencies, according to a release by Equifax Canada.
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March 15, 2024
Supreme Court rules limited statutory rights of appeal do not preclude access to judicial review
In a 9-0 judgment supportive of litigants’ access to judicial review, the Supreme Court of Canada has ruled that a limited statutory right of appeal in a case does not preclude judicial review for matters not the subject of appeal, i.e. where there is an appeal right limited to questions of law, judicial review is available for questions of fact or mixed fact and law.
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March 12, 2024
Whistleblower programs gaining ground in Canada’s corporate sector, say researchers
They’ve been lionized — and sometimes villainized. But corporate whistleblowers in Canada are gradually gaining greater protection as more companies introduce in-house informant programs to reduce the risk of wrongdoing, say researchers in the field.
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March 07, 2024
Alberta Court of Appeal upholds denial of interim injunction on standby letter of credit
The Alberta Court of Appeal has upheld the denial of an application for an interim injunction restraining a party from drawing on a standby letter of credit pending arbitration related to the termination of an infrastructure construction project.
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March 05, 2024
Federal lawyers ratify new collective agreement gains that achieve ‘comparable’ pay to Ontario Crowns
Members of the union representing more than 3,300 federal government lawyers and Crowns voted overwhelmingly to ratify a “hard won” new collective agreement, featuring pay increases of 12.5 per cent (13.14 per cent compounded) over four years — and making the pay rates for federal Crowns “comparable” to those of their Ontario counterparts, who are the highest paid public-sector lawyers in Canada, says the Association of Justice Counsel (AJC).