The Supreme Court of Canada (the SCC) has issued its decision in the appeal of the Ontario Court of Appeal (the OCA) decision in the Indalex case. Written reasons were issued by three groups of the seven justices who decided the appeal. The three groups concurred on some issues and disagreed on others. The end result was that the SCC overturned the OCA decision that subjected pension plan wind up deficiencies to deemed and constructive trusts with priority over debtor-in-possession financing. The SCC decision is summarized in a special edition of Fully Secured@Gowlings.
From a purely pension-focused perspective, the SCC decision is important because it:
Affirms that the statutory deemed trust set out in s. 57(4) of the Pension Benefits Act (Ontario) applies to the wind up deficiencies in respect of a pension plan that is being wound up;
Affirms that a s. 57(4) deemed trust is subject to the application of the federal paramountcy doctrine and can be superseded by a court-ordered priority granted under the Companies' Creditors Arrangement Act (Canada) which will have the same effect as a federal statutory priority; and
Contains analysis with respect to the scope of a pension plan administrator's fiduciary duties, the "two hats" worn by an employer when acting as pension plan administrator and the potential for conflict when wearing the "two hats."
The content of this article is intended to provide a general guide
to the subject matter. Specialist advice should be sought about your
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The prospect of an internal investigation raises many thorny issues. This presentation will canvass some of the potential triggering events, and discuss how to structure an investigation, retain forensic assistance and manage the inevitable ethical issues that will arise.
From the boardroom to the shop floor, effective organizations recognize the value of having a diverse workplace. This presentation will explore effective strategies to promote diversity, defeat bias and encourage a broader community outlook.
Staying local but going global presents its challenges. Gowling WLG lawyers offer an international roundtable on doing business in the U.K., France, Germany, China and Russia. This three-hour session will videoconference in lawyers from around the world to discuss business and intellectual property hurdles.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).