Sino-Forest Update: ONCA Rules That Institutional Investors Cannot Appeal Ernst & Young Settlement Under The CPA

Co-author: Brandon Stewart (Student-at-law)

In an earlier post, "Not Missing the Sino-Forest for the Trees: ONCA upholds auditor's $117 million settlement despite objections from institutional investors over opt-out rights", we reported that the Ontario Court of Appeal ("the Court") dismissed a motion by a group of institutional investors seeking leave to appeal the approval of a settlement between Sino-Forest and its auditor, Ernst & Young, under the Companies' Creditors Arrangements Act, 1985 ("CCAA"). These investors also sought to appeal the settlement directly to the Court under s. 30 of the Class Proceedings Act, 1992 ("CPA"). The class action plaintiffs brought a motion to quash, and the Court recently granted their request.