Digital Brain
digital brain
digital brain

Supreme Court of Canada Confirms: Hypothecary Notices In Québec Receiverships Are Here To Stay

April 6, 2021 Restructuring Bulletin < 1 minute read

On April 1, 2021, the Supreme Court of Canada dismissed an application for leave to appeal[1] in the matter of Séquestre de Media5 Corporation, a judgment rendered last summer by the Québec Court of Appeal[2]. The judgment from the Court of Appeal had settled the debate on the necessity for a secured creditor to comply with the notice requirement and periods associated with the exercise of hypothecary rights (exercise of security), as set out in the Civil Code of Québec (“CCQ”), when appointing a receiver under section 243 of the Bankruptcy and Insolvency Act (“BIA”).

Prior to the Court of Appeal’s judgment, Quebec case law was divided on the subject.  The Court of Appeal had confirmed the need to follow requirements under Provincial Legislation in addition to those under the BIA.  Moreover, despite the requirement to follow provincial notice requirements, the Court of Appeal’s judgment nonetheless confirmed the existence of an independent receivership regime under the BIA.

With the dismissal of the application for leave to appeal, the Supreme Court of Canada thus confirms the decision of the Quebec Court of Appeal is now final.

For more details, you can consult our summary of the Québec Court of Appeal’s decision here.

[1] Media5 Corporation, et al. v. Laurentian Bank of Canada, et al., 2021 CanLII 24824 (SCC)
[2] Séquestre de Media5 Corporation, 2020 QCCA 943

By Sidney Elbaz, Emile Catimel-Marchand and Nicholas Yanakis.

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2021

Insights (5 Posts)

Featured Insight

The 2022 Construction Labour “Open Period” – What Employers Need to Know

March 1 – April 30, 2022 is the “Open Period” for ICI collective agreements, and many non-ICI agreements, in Ontario. During this period members of construction unions can apply to the Ontario Labour Relations Board to terminate a union’s bargaining rights with their employer, or – more commonly – a rival union can apply to the Board to displace an existing union, in what is commonly known as a “raid”. During the Open Period employers will likely see increased union activity on sites as incumbent unions will seek to maintain member support, and as rival unions may try to gather support for a raid.

Join us on Wednesday, February 2nd for a discussion about what employers should expect and need to know if a decertification application or a displacement application involving their employees is filed at the Board.

Details
Wednesday, February 2, 2022
Featured Insight

PropTech: Property Technology, the New Frontier in Real Property, Part 3: Challenges

In this bulletin, we discuss the risks and challenges of using PropTech by businesses in the real estate space and for consumers of such products.

Read More
Jan 18, 2022
Featured Insight

Plan for the Ban: Our New Year’s Update of Single-Use Plastics Bans Across Canada

This bulletin provides an updated summary of the current state of single-use plastics legislation across Canada.

Read More
Jan 18, 2022
Featured Insight

Cash is King – Taking Control over Cash Collateral

In secured lending transactions, a debtor's cash may form part of the lender's general security or may be deposited with a financial institution to support certain contingent obligations (such as outstanding letter of credits)

Read More
Jan 18, 2022
Featured Insight

Alberta Securities Commission Provides Guidance On Shareholder Rights Plans, Break Fees and Use of Equity Swaps in Take-over Bid Context

An Alberta decision has held that the use of swaps in a hostile take-over bid can be abusive, and added guidance on shareholder rights plans and break fees.

Read More
Jan 12, 2022