In the Matter of Reliance Insurance Company
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Court File No. 01-CL-4313 ONTARIO SUPERIOR COURT OF JUSTICE - COMMERCIAL LIST - IN THE MATTER OF RELIANCE INSURANCE COMPANY AND IN THE MATTER OF THE INSURANCE COMPANIES ACT, S.C. 1991, C.47, AS AMENDED AND IN THE MATTER OF THE WINDING-UP AND RESTRUCTURING ACT,R.S.C. 1985, C.W-11, AS AMENDED BETWEEN: THE ATTORNEY GENERAL OF CANADA Applicant - and - RELIANCE INSURANCE COMPANY Respondent MOTION RECORD (Motion for directions in respect of approval motion re: settlement: Imperial Tobacco Canada Limited, Imperial Brands Ltd. and Imperial Tobacco Company Limited Policies) (Motion returnable July 15, 2015) Goodmans LLP Barristers & Solicitors Bay Adelaide Centre 333 Bay Street, Suite 3400 Toronto, ON M5H 2S7 Graham D. Smith\LSUC #26377D Gale Rubenstein\LSUC #17088E Francy Kussner\LSUC #29943K Tel:(416) 979-2211 Fax:(416) 979-1234 E-mail:[email protected] [email protected] [email protected] Lawyers for KPMG Inc., Liquidator of Reliance Insurance Company in Canada - 2 - TO: Osier, Hoskin & Harcourt LLP 1 First Canadian Place, 100 King Street West Suite 6100, P.O. Box 50 Toronto ON M5X 1B8 Deborah Glendinning and John MacDonald Tel.: 416- 362-2111 Fax: 416- 862-6666 E-mail: [email protected] jmacdonaldgosier.com Lawyers for Imperial Tobacco Canada Limited, Imperial Brands Ltd. and Imperial Tobacco Company Limited AND TO: Torys LLP 79 Wellington St. W., Suite 3000 Box 270, TD Centre Toronto, ON M5K 1N2 Scott Bomhof Tel: 416-865-7370 Fax: 416-865-7380 E-mail: [email protected] Lawyers for the Property and Casualty Insurance Compensation Corporation (Inspector) AND TO: Cassels Brock & Blackwell LLP 2100 Scotia Plaza 40 King Street West Toronto, ON M5H 3C2 Brian Reeve and David Ward Tel: 416-860-5300 Fax: 416-360-8877 E-mail: [email protected] [email protected] Lawyers for the Insurance Commissioner of the Commonwealth of Pennsylvania as Liquidator of Reliance Insurance Company (Inspector) AND TO: WeirFoulds LLP 4100 — 66 Wellington Street West P.O. Box 35, Toronto-Dominion Centre Toronto, Ontario M5K 1B7 Allan L. Bromstein Tel: 416-947-5000 Fax: 416-365-1876 E-mail: [email protected] Lawyer for Royal College of Dental Surgeons of Ontario AND TO: Office of the Superintendent of Financial Institutions 121 King Street West Toronto, Ontario M5H 3T9 Norah Love Tel: 416-973-1102 Fax: 416-952-1662 E-mail: [email protected] INDEX Court File No. 01-CL-4313 ONTARIO SUPERIOR COURT OF JUSTICE - COMMERCIAL LIST - IN THE MATTER OF RELIANCE INSURANCE COMPANY AND IN THE MATTER OF THE INSURANCE COMPANIES ACT,S.C. 1991, C.47, AS AMENDED AND IN THE MATTER OF THE WINDING-UP AND RESTRUCTURING ACT,R.S.C. 1985, C.W-11, AS AMENDED BETWEEN: THE ATTORNEY GENERAL OF CANADA Applicant - and - RELIANCE INSURANCE COMPANY Respondent INDEX TAB ITEM PAGE I Notice of Motion dated July 13, 2015 1 A Directions Order, with Schedules 7 2 Report of Liquidator dated July 7, 2015 in support of this motion for 26 directions 3 Report of Liquidator dated July 7, 2015 in support of the ITCAN 44 Approval motion TAB 1 Court File No. 01-CL-4313 ONTARIO SUPERIOR COURT OF JUSTICE - COMMERCIAL LIST - IN THE MATTER OF RELIANCE INSURANCE COMPANY AND IN THE MATTER OF THE INSURANCE COMPANIES ACT,S.C. 1991, C.47, AS AMENDED AND IN THE MATTER OF THE WINDING-UP AND RESTRUCTURING ACT,R.S.C. 1985, C.W-11, AS AMENDED BETWEEN: THE ATTORNEY GENERAL OF CANADA Applicant - and - RELIANCE INSURANCE COMPANY Respondent NOTICE OF MOTION (Motion for directions in respect of approval motion re: settlement: Imperial Tobacco Canada Limited,Imperial Brands Ltd. and Imperial Tobacco Company Limited Policies) (Motion returnable July 15,2015) KPMG Inc., in its capacity as Liquidator (the "Liquidator") of the insurance business of Reliance Insurance Company in Canada ("Reliance Canada"), will make a motion to a Judge presiding over the Commercial List on Wednesday, July 15, 2015 at 2:30 p.m. or as soon after that time as the motion can be heard, at 330 University Avenue, Toronto. - 2 - PROPOSED METHOD OF HEARING: The motion is to be heard orally. THE MOTION IS FOR: 1. An Order, substantially in the form attached hereto as Schedule "X', providing directions for service and notice with respect to the bringing of a motion (the "ITCAN Approval Motion") by the Liquidator for an Order, inter alia, approving the Full and Final Settlement and Release Agreement between Reliance Canada in Liquidation and Imperial Tobacco Canada Limited and related entities dated June 17, 2015 (the "ITCAN Agreement"). 2. Such further and other relief as this Court may deem just. THE GROUNDS FOR THE MOTION ARE: 1. The Liquidator will be seeking, by way of the ITCAN Approval Motion, this Court's approval of the ITCAN Agreement, and related relief; 2. The Liquidator seeks directions with respect to notice and service in connection with the ITCAN Approval Motion, given the extensive universe of persons to be given notice thereof; 3. The proposed terms of the Order sought herein set out a reasonable, fair and practicable method to effect service of the ITCAN Approval Motion materials; 4. Rules 1.04, 2.03, 3.02, and 37 of the Rules of Civil Procedure. 5. Sections 33, 35 and 125 of the Winding-up and Restructuring Act. 6. Such further and other grounds as counsel may advise and this Honourable Court permit. - 3 - THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the motion: 1. The Report of the Liquidator dated July 7, 2015 in support of this motion for directions, and the Report of the Liquidator dated July 7, 2015 in support of the ITCAN Approval Motion. 2. Such further and other material as counsel may advise and this Court peimit. July 13, 2015 Goodmans LLP Barristers & Solicitors Bay Adelaide Centre 333 Bay Street, Suite 3400 Toronto, ON M5H 2S7 Graham D. Smith\LSUC #26377D Gale Rubenstein\LSUC #17088E Franey Kussner\LSUC #29943K Tel:(416) 979-2211 Fax:(416) 979-1234 E-mail:[email protected] [email protected] [email protected] Lawyers for KPMG Inc., Liquidator of Reliance Insurance Company in Canada TO: Oster, Hoskin & Harcourt LLP 1 First Canadian Place, 100 King Street West Suite 6100, P.O. Box 50 Toronto ON M5X 1B8 Deborah Glendinning and John MacDonald Tel.: 416- 362-2111 Fax: 416- 862-6666 E-mail: [email protected] [email protected] Lawyers for Imperial Tobacco Canada Limited, Imperial Brands Ltd. and Imperial Tobacco Company Limited 4 AND TO: Torys LLP 79 Wellington St. W., Suite 3000 Box 270, TD Centre Toronto, ON M5K 1N2 Scott Bomhof Tel: 416-865-7370 Fax: 416-865-7380 E-mail: [email protected] Lawyers for the Property and Casualty Insurance Compensation Corporation (Inspector) AND TO: Cassels Brock & Blackwell LLP 2100 Scotia Plaza 40 King Street West Toronto, ON M5H 3C2 Brian Reeve and David Ward Tel: 416-860-5300 Fax: 416-360-8877 E-mail: [email protected] [email protected] Lawyers for the Insurance Commissioner of the Commonwealth of Pennsylvania as Liquidator of Reliance Insurance Company (Inspector) AND TO: WeirFoulds LLP 4100 — 66 Wellington Street West P.O. Box 35, Toronto-Dominion Centre Toronto, Ontario M5K 1B7 Allan L. Bromstein Tel: 416-947-5000 Fax: 416-365-1876 E-mail: [email protected] Lawyer for Royal College of Dental Surgeons of Ontario - 5 - AND TO: Office of the Superintendent of Financial Institutions 121 King Street West Toronto, Ontario M5H 3T9 Norah Love Tel: 416-973-1102 Fax: 416-952-1662 E-mail: [email protected] SCHEDULE "A" SCHEDULE "A" Court File No. 01-CL-4313 ONTARIO SUPERIOR COURT OF JUSTICE COMMERCIAL LIST THE HONOURABLE JUSTICE WEDNESDAY,THE 15ffi DAY NEWBOULI) OF JULY, 2015 IN THE MATTER OF RELIANCE INSURANCE COMPANY AND IN THE MATTER OF THE INSURANCE COMPANIES ACT, S.C. 1991, C.47, AS AMENDED AND IN THE MATTER OF THE WINDING-UP AND RESTRUCTURING ACT,R.S.C. 1985, C.W-11, AS AMENDED BETWEEN: THE ATTORNEY GENERAL OF CANADA Applicant - and - RELIANCE INSURANCE COMPANY Respondent DIRECTIONS ORDER (Motion for directions in respect of approval motion re: settlement: Imperial Tobacco Canada Limited, Imperial Brands Ltd. and Imperial Tobacco Company Limited policies) THIS MOTION, made by KPMG Inc., in its capacity as Liquidator ("Liquidator") of the insurance business of Reliance Insurance Company in Canada ("Reliance Canada"), for directions for notice and service, and related relief, in respect of the ITCAN Approval Motion (as defined below) was heard this day at 330 University Avenue, Toronto. - 2 - ON READING the Report of the Liquidator dated July 7, 2015 (the "Directions Report"), and upon hearing the submissions of counsel for the Liquidator and counsel for Imperial Tobacco Canada Limited ("ITCAN"), Imperial Brands Ltd. and Imperial Tobacco Company Limited, no other party appearing although properly served as evidenced by the proof of service filed, 1. THIS COURT ORDERS that the service made of the Notice of Motion and supporting materials for this motion for directions in respect of the proposed motion ("ITCAN Approval Motion") by the Liquidator to seek approval of a Full and Final Settlement and Release Agreement between Reliance Canada in Liquidation and ITCAN dated June 17, 2015 (the "ITCAN Agreement"), and related relief, is good and sufficient notice of this motion, that this motion is properly returnable today and any further service or notice is hereby dispensed with. 2. THIS COURT ORDERS that notice and service in respect of the ITCAN Approval Motion may be made as follows, and shall be effective and sufficient if so made: (i) on each of the named plaintiffs and members of plaintiff classes in the actions as set out in Schedule "A" hereto (the "ITCAN Actions"), by e-mailing or posting by regular mail the motion record in support of the ITCAN Approval Motion (the "Liquidator's Motion Record"), on or before August 19, 2015, to the respective plaintiff counsel in the ITCAN Actions; (ii) on the federal government and territorial governments not already included as plaintiffs in the ITCAN Actions, by posting by regular mail the Liquidator's Motion Record, on or before August 19, 2015, to: - 3 - a.