This Week At The SCC

The Supreme Court issued one judgment this week in a case of interest to Canadian businesses and professions.

In its eagerly awaited decision in Sun Indalex Finance, LLC v. United Steelworkers, 2013 SCC 6, the Court provided some needed clarity regarding the rights of pensioners in proceedings under the Companies' Creditors Arrangement Act ("the CCAA"). In three separate sets of reasons, the members of the Court converged and diverged on several important issues.

The Court was unanimous in reversing the Ontario Court of Appeal on the priority to be accorded to the statutory deemed trust, protecting pension claims, arising under s. 57(4) of the Ontario Pension Benefits Act ("the PBA"). As a result of the constitutional paramountcy doctrine, the priority granted to the debtor-in-possession ("DIP") lenders by the CCAA judge took precedence over the deemed trust created by the provincial legislation.