


Supreme Court of Canada Confirms: Hypothecary Notices In Québec Receiverships Are Here To Stay
Supreme Court of Canada Confirms: Hypothecary Notices In Québec Receiverships Are Here To Stay
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)
Fanning the Flames of Liability: The Ontario Court of Appeal Considers Product Liability Issues in Burr v. Tecumseh Products of Canada Limited
The decision of the Court of Appeal in Burr v. Tecumseh Products of Canada Limited, 2023 ONCA 135 provides a helpful overview of product liability law.
A Look at Some Key Findings by the Alberta Securities Commission in Re Bison Acquisition Corp.
On December 21, 2021, a panel of the Alberta Securities Commission issued its written decision providing its reasons for the oral ruling it made on July 12, 2021 regarding applications brought by Bison Acquisition Corp. and Brookfield Infrastructure Corporation Exchange Limited Partnership, as well as Inter Pipeline Ltd. and Pembina Pipeline Corporation.
Employer’s Disturbing Termination Conduct Results in $15,000 Moral Damages Award
Teljeur v Aurora Hotel Group 2023 ONSC 1324 provides example of post-termination conduct and bad faith damages.
Succeeding at Succession: Tips on Corporate Governance including How to Navigate Board Renewals and Elections
Stakeholders are demanding good corporate governance, which includes effective succession planning where a range of skills, experience, and backgrounds are highly valued and reflected. In collaboration with WATSON, a national multidisciplinary governance firm, join us in the morning on Wednesday, April 19, to discuss strategies and action plans that drive robust succession planning and strong corporate governance.
Adjudication under the Construction Act: Court Confirms Test to Apply for Judicial Review a “High Bar”
Adjudication under the Construction Act: Court Confirms Test to Apply for Judicial Review a “High Bar” Anatolia Tile & Stone Inc. v Flow-Rite Inc. 2023 ONSC 129.
Get updates delivered right to your inbox. You can unsubscribe at any time.