Canadian Cases on Pensions & Benefits
Total Page:16
File Type:pdf, Size:1020Kb
CANADIAN CASES ON PENSIONS & BENEFITS Second Series/Deuxi`eme s´erie Recueil de jurisprudence canadienne en mati`ere de retraite et d’avantages sociaux VOLUME 31 (Cited 31 C.C.P.B. (2nd)) EDITOR/REDACTRICE´ Andrea Boctor, B.COMM., LL.B. Stikeman Elliott, Toronto ASSOCIATE EDITORS/REDACTEURS´ ADJOINTS Aiden Talai, B.A., LL.B., B.C.L., LL.M. Michel Legendre, B.A., LL.L. Stikeman Elliott, Toronto Stikeman Elliott, Montr´eal Catherine A. Jenner, B.A., M.L.S., LL.B., B.C.L. Stikeman Elliott, Montr´eal EDITORIAL STAFF/REDACTION´ Cheryl L. McPherson, B.A.(HONS.) Director, Content Operations — Primary Law & Quebec Robert S. Greenfield, B.A., J.D. Product Development Manager Nicole Ross, B.A., LL.B. Julia Fischer, B.A.(HONS.), LL.B. Supervisor, Legal Writing Supervisor, Legal Writing Martin-Fran¸cois Parent, LL.B., LL.M., Samantha Barr, B.A., J.D. DEA (PARIS II) Lead Legal Writer Bilingual Legal Writer Madalina Sontrop, B.A.(HONS.), LL.B., Annie Chan, B.A. LL.M Content Editor Senior Legal Writer CANADIAN CASES ON PENSIONS & BENEFITS, a national series of an- Recueil de jurisprudence canadienne en mati`ere de retraite et d’avantages sociaux, une notated topical law reports, is published 12 times per year. s´erie nationale de recueils de jurisprudence sp´ecialis´ee et annot´ee, est publi´e 12 fois par ann´ee. Editorial Offices are also located at the following address: 430 rue St. Pierre, Le bureau de la r´edaction est situ´e a` Montr´eal — 430, rue St. Pierre, Mon- Montr´eal, Qu´ebec, H2Y 2M5. tr´eal, Qu´ebec, H2Y 2M5. ________ ________ © 2017 Thomson Reuters Canada Limited © 2017 Thomson Reuters Canada Limit´ee NOTICE AND DISCLAIMER: All rights reserved. No part of this publica- MISE EN GARDE ET AVIS D’EXONERATION´ DE RESPON- tion may be reproduced, stored in a retrieval system, or transmitted, in any SABILITE´ : Tous droits r´eserv´es. Il est interdit de reproduire, m´emoriser sur form or by any means, electronic, mechanical, photocopying, recording or un syst`eme d’extraction de donn´ees ou de transmettre, sous quelque forme ou otherwise, without the prior written consent of the publisher (Thomson par quelque moyen que ce soit, electronique´ ou m´ecanique, photocopie, enre- Reuters Canada, a division of Thomson Reuters Canada Limited). gistrement ou autre, tout ou partie de la pr´esente publication, a` moins d’en avoir pr´ealablement obtenu l’autorisation ecrite´ de l’´editeur, Thomson A licence, however, is hereby given by the publisher: Reuters Canada, une division de Thomson Reuters Canada Limit´ee. Cependant, l’´editeur conc`ede, par le pr´esent document, une licence : (a) to a lawyer to make a copy of any part of this publication to give to a a) a` un avocat, pour reproduire quelque partie de cette publication pour judge or other presiding officer or to other parties in making legal submis- remettre a` un juge ou un autre officier-pr´esident ou aux autres parties dans sions in judicial proceedings; une instance judiciaire; b) a` un juge ou un autre officier-pr´esident, pour produire quelque partie de (b) to a judge or other presiding officer to produce any part of this publication cette publication dans une instance judiciaire; ou in judicial proceedings; or c) a` quiconque, pour reproduire quelque partie de cette publication dans le cadre de d´elib´erations parlementaires. (c) to anyone to reproduce any part of this publication for the purposes of parliamentary proceedings. « Instance judiciaire » comprend une instance devant une cour, un tribunal ou une personne ayant l’autorit´e de d´ecider sur toute chose affectant les droits ou les responsabiliti´es d’une personne. “Judicial proceedings” include proceedings before any court, tribunal or per- son having authority to decide any matter affecting a person’s legal rights or Ni Thomson Reuters Canada ni aucune des autres personnes ayant particip´e a` liabilities. la r´ealisation et a` la distribution de la pr´esente publication ne fournissent quelque garantie que ce soit relativement a` l’exactitude ou au caract`ere actuel Thomson Reuters Canada and all persons involved in the preparation and sale de celle-ci. Il est entendu que la pr´esente publication est offerte sous la r´e- of this publication disclaim any warranty as to accuracy or currency of the serve expresse que ni Thomson Reuters Canada, ni le ou les auteurs de cette publication. This publication is provided on the understanding and basis that publication, ni aucune des autres personnes ayant particip´e a` son elaboration´ none of Thomson Reuters Canada, the author/s or other persons involved in n’assument quelque responsabilit´e que ce soit relativement a` l’exactitude ou the creation of this publication shall be responsible for the accuracy or cur- au caract`ere actuel de son contenu ou au r´esultat de toute action prise sur la rency of the contents, or for the results of any action taken on the basis of the foi de l’information qu’elle renferme, ou ne peuvent etreˆ tenus responsables information contained in this publication, or for any errors or omissions con- de toute erreur qui pourrait s’y etreˆ gliss´ee ou de toute omission. tained herein. La participation d’une personne a` la pr´esente publication ne peut en aucun cas etreˆ consid´er´ee comme constituant la formulation, par celle-ci, d’un avis No one involved in this publication is attempting herein to render legal, ac- juridique ou comptable ou de tout autre avis professionnel. Si vous avez counting, or other professional advice. If legal advice or other expert assis- besoin d’un avis juridique ou d’un autre avis professionnel, vous devez tance is required, the services of a competent professional should be sought. retenir les services d’un avocat ou d’un autre professionnel. Les analyses The analysis contained herein should in no way be construed as being either comprises dans les pr´esentes ne doivent etreˆ interpr´et´ees d’aucune fa¸con official or unofficial policy of any governmental body. comme etant´ des politiques officielles ou non officielles de quelque organ- isme gouvernemental que ce soit. 8 The paper used in this publication meets the minimum requirements of 8 Le papier utilis´e dans cette publication satisfait aux exigences minimales American National Standard for Information Sciences — Permanence of Pa- de l’American National Standard for Information Sciences — Permanence of per for Printed Library Materials, ANSI Z39.48-1984. Paper for Printed Library Materials, ANSI Z39.48-1984. ISSN 1195-5848 ISBN 978-0-7798-4451-7 Printed in Canada by Thomson Reuters THOMSON REUTERS CANADA, A DIVISION OF THOMSON REUTERS CANADA LIMITED One Corporate Plaza Customer Relations 2075 Kennedy Road Toronto 1-416-609-3800 Toronto, Ontario Elsewhere in Canada/U.S. 1-800-387-5164 M1T 3V4 Fax 1-416-298-5082 www.carswell.com Contact www.carswell.com/email CANADIAN CASES ON PENSIONS & BENEFITS Second Series/Deuxi`eme s´erie Recueil de jurisprudence canadienne en mati`ere de retraite et d’avantages sociaux [Indexed as: Nortel Networks Corp., Re] IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. c-36, AS AMENDED IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF NORTEL NETWORKS CORPORATION, NORTEL NETWORKS LIMITED, NOR TEL NETWORKS GLOBAL CORPORATION, NORTEL NETWORKS INTERNATIONAL CORPORATION and NORTEL NETWORKS TECHNOLOGY CORPORATION Ontario Superior Court of Justice [Commercial List] Docket: 09-CL-7950 2017 ONSC 700 Newbould J. Heard: January 24, 2017 Judgment: January 30, 2017* Bankruptcy and insolvency –––– Companies’ Creditors Arrangement Act — Arrangements — Approval by court — Miscellaneous –––– Global telecom- munications company with corporate entities in many jurisdictions (debtors) be- came insolvent — Canadian debtors were granted Companies’ Creditors Ar- rangement Act protection — Dispute arose regarding $7.3 billion held in escrow after sale of debtors’ assets, which involved protracted litigation in Canada and U.S. with various parties from multiple jurisdictions — Parties executed settle- ment and support agreement — Monitor brought motion to sanction Canadian debtors’ plan of compromise and arrangement and to release escrowed sale pro- * A corrigendum issued by the court on March 1, 2017 has been incorporated herein. 2 CANADIAN CASES ON PENSIONS & BENEFITS 31 C.C.P.B. (2nd) ceeds in accordance with agreement — Motion granted — Plan sanctioned — Release of sale proceeds authorized in manner set out in agreement — Plan was fair and reasonable — Plan received approval from 99.7 percent of creditors and called for payment to creditors on pari passu basis, which was bedrock of Cana- dian insolvency law — Objections to approval of plan by long-term disability (LTD) beneficiaries were dismissed — LTD claimants were bound to prior agreement that their claims were to rank as unsecured claims that shared pari passu with other unsecured claims against Canadian debtors and that any claim for priority treatment had been released — Plan was not contrary to ss. 7 and 15 of Charter of Rights and Freedoms with respect to LTD claimants. Cases considered by Newbould J.: B.C.G.E.U., Re (1988), [1988] 6 W.W.R. 577, 30 C.P.C. (2d) 221, [1988] 2 S.C.R. 214, 220 A.P.R. 93, 53 D.L.R. (4th) 1, 87 N.R. 241, 31 B.C.L.R. (2d) 273, 71 Nfld. & P.E.I.R. 93, 44 C.C.C. (3d) 289, 88 C.L.L.C. 14,047, 1988 CarswellBC 762, 1988 CarswellBC 363, [1988] S.C.J. No. 76, EYB 1988- 67021, 50 C.R.R. 397, 50 C.R.R. 397 (note) (S.C.C.) — considered Canadian Airlines Corp., Re (2000), 2000 ABQB 442, 2000 CarswellAlta 662, [2000] 10 W.W.R.