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ARTICLE · 02 OCTOBER 2021

Lower Court's Decision Upheld By Supreme Court Of Canada In CCAA Ruling

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In Her Majesty the Queen v. Canada North Group Inc., the Supreme Court of Canada (the Court) held that lower courts can permit the grant of court ordered charges under...

CanadaLitigation, Mediation & Arbitration
Robyn Gurofsky
Robyn Gurofsky
Elizabeth Egberts
Elizabeth Egberts
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In Her Majesty the Queen v. Canada North Group Inc., the Supreme Court of Canada (the Court) held that lower courts can permit the grant of court ordered charges under the Companies' Creditors Arrangement Act, RSC 1985, c C-36 (the CCAA), including the interim lender's charge, in priority to the Minister of National Revenue's (the Minister) statutory deemed trust claims under the Income Tax Act, RSC 1985 c 1 (the ITA).

Background

On July 28, 2021, the Court issued its decision in Her Majesty the Queen v. Canada North Group Inc. 1 (the Decision) in a 5-4 majority ruling.

At issue, were court ordered superiority charges requested by Canada North Group and six related corporations (together Canada North) pursuant to a CCAA application for initial restructuring proceedings. Specifically, Canada North requested, and were granted, super priority charges in relation to:

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