** HIGHLIGHTS **

  • The Saskatchewan Court of Appeal has held that the provisions of s. 243 of the Bankruptcy and Insolvency Act, which allows secured creditors to apply to the Court to appoint a receiver, are paramount and prevail over the provisions of the Saskatchewan Farm Security Act which, among other things, require leave of the Court before an action can be commenced with respect to a mortgage. The Court also held that the powers granted to a receiver under s. 243 could include the power to obtain a vesting order in connection with a Court-supervised sale of assets. The Court reviews, in depth, the broad range of considerations that bear on the issue of whether it is "just and convenient" to appoint a receiver, and ultimately held that notwithstanding the Court's errors, it was not just and convenient to grant a receivership order in the circumstances. [Editor's Note: This decision could have important implications with respect to the remedies available to Saskatchewan secured creditors who have grounds to argue that it is "just and convenient" to appoint a receiver.]. (Lemare Lake Logging Ltd. v. 3L Cattle Co., CALN/2014-016, [2014] S.J. No. 164, Saskatchewan Court of Appeal)
  • The Ontario Court of Appeal has upheld a lower Court ruling that the Ontario Arbitration Act, and not the Ontario International Commercial Arbitration Act, applied to an arbitration conducted pursuant to rules established by the Fruit and Vegetable Dispute Resolution Corporation in response to NAFTA. The Court agreed that the Ontario Act applied because the parties were both Ontario businesses, notwithstanding the product in issue was ultimately destined for export to the United States. (R & G Draper Farms (Keswick) Ltd. v. 1758691 Ontario Inc. (c.o.b. ATV Farms), CALN/2014-017, [2014] O.J. No. 1684, Ontario Court of Appeal)

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Originally published by Lexis Nexis.

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