This Week At The SCC

Cases Decided

The Supreme Court of Canada released one decision this week of interest to Canadian businesses and professions.

In Newfoundland and Labrador v. AbitibiBowater Inc., 2012 SCC 67, the majority of the Court held that environmental protection orders issued under provincial legislation, which required an insolvent company to undertake remediation measures but which were not expressed in monetary terms, nonetheless amounted to "claims" under the Companies' Creditors Arrangement Act ("CCAA") that could be stayed and subject to a claims procedure order in the context of CCAA proceedings. The Court observed that not all environmental protection orders will qualify as claims under the CCAA, only those which can be treated as monetary claims pursuant to the following three-part test: (1) there is a debt, liability or obligation owing to a creditor; (2) the debt or obligation is incurred before the debtor becomes bankrupt; and (3) it is possible to attach a