MOTION RECORD (Returnable September 3, 2020)
Total Page:16
File Type:pdf, Size:1020Kb
Court File No. CV-15-68-00 ONTARIO SUPERIOR COURT OF JUSTICE IN THE MATTER OF SECTION 243(1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C. 1985, C. B-3, AS AMENDED, SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O 1990 C. C.43, AS AMENDED, AND SECTION 68 OF THE CONSTRUCTION LIEN ACT, R.S.O. 1990, C. C.30, AS AMENDED B E T W E E N: HARBOUR EDGE MORTGAGE INVESTMENT CORPORATION Applicant - and - HARNDEN ENTERPRISES INCORPORATED AND SOUTHWINDS ENTERPRISES LIMITED Respondents MOTION RECORD (Returnable September 3, 2020) August 25, 2020 DICKINSON WRIGHT LLP Barristers & Solicitors 199 Bay Street Suite 2200, P.O. Box 447 Toronto, Ontario, M5L 1G4 FAX: (416) 865-1398 DAVID PREGER (36870L) Email: [email protected] Tel: (416) 366-6406 LISA S. CORNE (27974M) Email: [email protected] Tel: (416) 646-4608 Lawyers for the Receiver, Rosen Goldberg Inc. -2- TO: SERVICE LIST Service List TO: VICTOR L. VANDERGUST PROFESSIONAL CORPORATION Barrister & Solicitor 11 Hurontario Street P.O. Box 39, Stn. Main Collingwood, Ontario, L9Y 3Z4 Email: [email protected] Tel: (705) 445-4544 Fax: (705) 445-4160 Lawyer for the Applicant AND TO: LOU VADALA PROFESSIONAL CORPORATION Barrister & Solicitor 781 Blackburn Mews Kingston, Ontario, K7P 2N5 Email: [email protected] Tel: 1(613) 384-1709 Fax: 1(613) 384-8955 Lawyer for 1709927 Ontario Limited AND TO: MAXIUM FINANCIAL SERVICES INC. 30 Vogell Road, Unit 1 Richmond Hill, Ontario, L4B 3K6 Email: [email protected] Tel: 905-780-6150 AND TO: FARLEY MANUFACTURING INC. 6 Kerr Crescent Puslinch, Ontario, N1H 6H9 Email: [email protected] Tel: (519) 821 - 5422 Fax:(519) 821 – 5424 AND TO: FOUR COURTS LIMITED 6 Kerr Crescent Puslinch, Ontario, N1H 6H9 - or – 550 Imperial Rd N Guelph, ON N1H 7M3 Email: [email protected] Tel: 519-821-5422 Fax: 519-821-5424 AND TO: JOHN DEERE FINANCIAL INC. 3430 Superior Court Oakville, Ontario L6L 0C4 Tel: 905 319-4958 Fax: 905 319-5866 Email: [email protected] Attention: Steve A. Watson, Associate Chief Counsel AND TO: JOHN DEERE CREDIT INC. 3430 Superior Court Oakville, Ontario L6L 0C4 Tel: 905 319-4958 Fax: 905 319-5866 Email: [email protected] Attention: Steve A. Watson, Associate Chief Counsel AND TO: SOUSA READY MIX 1351 McAdoo's Ln Glenburnie, ON K0H 1S0 Email: [email protected] Tel: (613) 547-3675 AND TO: JEFF BYRON PUMPS & WATER TREATMENT INC. 2973 Unity Rd, Elginburg, ON K0H 1M0 Email: [email protected] Tel: (613) 634-4346 AND TO: WICKLOW AND TO: WORK OF ART MASONRY LTD 1431 Cottsmere Ct, Kingston, ON K7L 4V4 Tel: (613) 328-2107 AND TO: BGM METALWORKS INC 91 Harvey St, Kingston, ON K7K 5C1 Tel 613-634-2094 Fax: 613-384-0422 Email: [email protected] AND TO: ANTONIO MENDES CONSTRUCTION LTD 10-695 Innovation Dr. Kingston ON K7K 7E6 AND TO: ANTONIO MENDES CONSTRUCTION 132 Sheridan Street, Kingston ON K7P 3E Email: [email protected] AND TO: KINGSTON PLATE AND WINDOW GLASS 1407 John Counter Blvd, Kingston, ON K7K 6A9 Tel:(613) 546-6421 Fax: 613.545.0677 Email: [email protected] Attention: Brian Brooks AND TO: ACTION FLOORING KINGSTON 810 Development Dr, Kingston, ON K7M 5V7 Tel: (613) 634-3657 Email: [email protected] Attention: Larry Paquette AND TO: CDS-COMMERCIAL DOOR SYSTEMS LTD 639-A Justus Drive Kingston, Ontario K7M 4H5 Tel: (613) 389-5131 Email: [email protected] AND TO: GRASSROOTS SUPPLY CO 510 Oakwood Ave York, ON M6E 2X1 Tel: (647) 245-4502 AND TO: HMC CONTRACTING LTD 408 Bernice Dr Kingston, ON K7M 5X3 Email: [email protected] Tel: 1 613 541 8680 AND TO: OTIS 16 Trinity Square Toronto, ON M5G 1B1 Tel:(416) 596-1163 Email: [email protected] AND TO: SELECT DOOR & FRAME 278 Dalton Ave, Kingston, ON K7K 7H2 Tel: (613) 549-4193 Email: [email protected] AND TO: BGM METALWORKS 91 Harvey Street, Kingston ON K7K 5C1 Tel:(613) 634-2094 Email: [email protected] AND TO: ALEX McCOY PLUMBING & HEATING LTD. 1-718 Fortune Crescent, Kingston ON K7P 2T3 Email: [email protected] Tel: (613) 546-6846 Fax: (613) 541-1331 AND TO: WYLIE ELECTRIC 175 Resource Road, Kingston ON K7P 0K1 Tel:(613) 634-3008 Email: [email protected] INDEX I N D E X Tabs Document 1. Notice of Motion 2. Third Report of Rosen Goldberg Inc. dated August 25, 2020 A Appendix “A” - Receivership Order B Appendix “B” - Interim Order of Justice Minnema C Appendix “C” – Order of Justice Belch D Appendix “D” - Second Report of Rosen Goldberg Inc. E Appendix “E” - Approval and Vesting Order F Appendix “F” – Endorsement of Justice Minnema G Appendix “G” - Receiver’s Statement of Receipts and Disbursements H Appendix “H” – Summary of Amounts Held I Appendix “I” – Letter from Receiver to the City dated March 25, 2019 J Appendix “J” – Email communications between the City and Receiver K Appendix “K” – Fee Affidavit of Brahm Rosen L Appendix “L – Fee Affidavit of Lisa Corne 3. Redline Discharge Order to the Model Order TAB 1 1 Court File No. CV-15-68-00 ONTARIO SUPERIOR COURT OF JUSTICE IN THE MATTER OF SECTION 243(1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C. 1985, C. B-3, AS AMENDED, SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O 1990 C. C.43, AS AMENDED, AND SECTION 68 OF THE CONSTRUCTION LIEN ACT, R.S.O. 1990, C. C.30, AS AMENDED B E T W E E N: HARBOUR EDGE MORTGAGE INVESTMENT CORPORATION Applicant - and - HARNDEN ENTERPRISES INCORPORATED AND SOUTHWINDS ENTERPRISES LIMITED Respondents NOTICE OF MOTION (Returnable September 3, 2020) Rosen Goldberg Inc., in its capacity as receiver and construction lien trustee (collectively, the “Receiver”) of all of the assets, undertakings and properties of Harnden Enterprises Incorporated and Southwinds Enterprises Limited (collectively, the “Debtors”) will make a Motion on Thursday September 3, 2020 by video conference at 10:00am before a Judge at the Kingston Courthouse at 5 Court Street in Kingston, Ontario. PROPOSED METHOD OF HEARING: The Motion is to be heard by video conference. 2 THE MOTION IS FOR 1. An order, if necessary abridging the time for service of the Receiver’s Motion Record, validating service of the Receiver’s Motion Record and declaring that the Motion is properly returnable on September 3, 2020, and dispensing with further service thereof; 2. An Order in the form attached hereto as Schedule “A”: (a) approving the Receiver’s activities as set out in its Third Report dated August 25, 2020 (the “Third Report”); (b) approving the professional fees of the Receiver and its counsel; (c) approving the Receiver’s Statement of Receipts and Disbursements for the period from March 26, 2015 to August 10, 2020; (d) approving a distribution of the Reserve (as defined below) by the Receiver to the lien claimants and other unpaid suppliers in accordance with the Receiver’s recommendations in its Third Report; (e) discharging the Receiver; and 3. Such further and other relief as to this Honorable Court may seem just. THE GROUNDS FOR THE MOTION ARE 1. By Order of Justice McLean dated March 26, 2015, Rosen Goldberg Inc. was appointed receiver and construction lien trustee of all the assets, undertakings and properties of the Debtors; 2. The assets subject to the Receiver’s administration were located on approximately 300 acres in Kingston, Ontario (collectively, the “Properties”), and included the following: (a) A golf facility, comprised of an 18 hole course known as Westbrook Golf Club, a 9 hole course referred to as the Kingston Par 3, a 50 seat restaurant and patio, and a small pro-shop; 3 (b) A two-storey residential property, adjacent to the golf facility; and (c) A sports dome known as the Kingston 1000 Island Sportsplex. 3. On June 18, 2015, the Honourable Justice Belch approved the sales process proposed by the Receiver in its First Report dated June 12, 2015 (the “Sales Process Order”); 4. The Receiver implemented the sales process in accordance with the Sales Process Order and exposed the Properties to the market for a lengthy period of time; 5. Pursuant to the Approval and Vesting Order dated November 26, 2015 granted by the Honourable Mr. Justice Minnema, the Receiver completed the sale of the Properties to a Applicant, Harbouredge Mortgage Investment Corporation ( “Harbouredge”), free and clear of all claims; 6. At the date of the Receivership Order, there were a number of liens registered against the Properties under the Construction Act (Ontario); 7. In accordance with the Order of Justice Minnema dated November 26, 2015, the Receiver is holding funds in the amount of $109,187, plus accrued interest ( the “Reserve”) , in respect of potential priority claims under the Construction Act (Ontario); 8. Harbouredge has entered into a settlement agreement with the lien claimants pursuant to which the lien claimants will be entitled to payment of a portion of the Reserve; 9. The Receiver recommends that the Reserve be applied to pay the amounts agreed upon by the lien claimants and Harbouredge ; 10. According to the Debtors’ records, the Debtors had retained, but not yet released, certain amounts in respect of the holdback required under section 8 of the Construction Act; 11. The Receiver recommends that the balance of the Reserve, after payment of the settlement amounts to the lien claimants, be paid to those suppliers entitled to holdback payments retained by the Debtors pursuant to section 8 of the Construction Act, on a pro rata basis ; 4 12. The Receiver has acted honestly, in good faith and in a commercially reasonable manner in all respects in connection with its administration of the Debtors’ estate ; 13.