eLaw - Business Law Update | May 2017 - No. 78

The Law Society of Manitoba
Professional Education and Competence
The Law Society of Manitoba
eLaw Business Law Update May 2017
In This Issue
Certificate of Substantial Performance Required
to Engage 40-day Registration Time Period: MBCA
Arbitrator Has Authority to Correct Errors on Own Initiative: MBQB
“No Elegant Way to Put the Genie Back in the Bottle”: MBQB
Legislative Update
Provinces Sign New Canadian Free Trade Agreement
CASL Update
Recommended Reading
Continuing Professional Development: LSM
Summer CPD Replays: LSM
MBA Programs
Save the Dates:
National Insolvency Law Conference and CCCA National Conference

Certificate of Substantial Performance Required to Engage 40-day Registration Time Period: MBCA

The motion judge was correct in finding that a certificate of substantial performance is required to start the 40-day time period for registration of a builders’ lien, regardless of whether the contract has been substantially performed within the definition of s.2(1) of the Act, according to the Court of Appeal in Canotech Consultants Ltd v 5994731 Manitoba Ltd, 2017 MBCA 48. In response to the defendant’s argument that there was deemed substantial performance within the meaning of s.2(1), the court found that s.2(1) has a purpose other than the establishment of a date of substantial performance for the purpose of commencing the time period to register a lien pursuant to s. 43(1):

Regarding the description of substantial performance found in section 2(1) of the Act, fulfillment of its conditions does not trump the requirement for a certificate of substantial performance in section 43(6).  In my view, section 2(1) may be useful as an aid in determining when such a certificate should issue pursuant to sections 46(1) and (2) or when a judge should make an order that a contract has been substantially performed pursuant to section 46(3) of the Act. (para. 27)

Arbitrator Has Authority to Correct Errors on Own Initiative: MBQB

In Fat Cat Farms Ltd. v. Wolfe et al, 2017 MBQB 76, the court declined to set aside, and issued an order to enforce, an arbitrator’s decision to liquidate the remaining assets of two corporations following a shareholder dispute. The award was challenged on the basis that the arbitrator had issued a correction without waiting for a response from one of the parties and because it dealt with shotgun rights when this was not a specifically agreed upon issue for arbitration. The court rejected these arguments and also declined to grant leave to appeal the arbitrator’s decision concerning the amounts owing to one of the shareholders with respect to his employment contract.

“No Elegant Way to Put the Genie Back in the Bottle”: MBQB

In CIBC Wood Gundy Inc. v. BDO Canada Ltd., 2017 MBQB 71, the court ordered the Trustee in Bankruptcy to return restricted share proceeds mistakenly paid by the CIBC as property of the bankrupt’s estate rather than income, but ordered the CIBC to immediately pay the funds into court until further order. The trustee urged the court to fashion an equitable remedy by leaving the funds with the estate as a cash pool to compensate for the second-time bankrupt’s misconduct (he refused to remit inheritance property and surplus income owing to the estate in an amount almost double the amount of the mistakenly-paid funds). The court found, however, that it would be unjust and unfair to enrich the estate at the expense of an innocent party (the CIBC), and that the trustee’s claims could and should be analyzed apart from CIBC’s valid concerns.

Legislative Update

Federal

Bill C-25, An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act, and the Competition Act, was referred to the Standing Committee on Industry, Science and Technology on December 9, 2016 and was reported with amendments on March 22, 2017 and presented to the House on April 6, 2017. It proposes significant changes to corporate governance, shareholder participation, and gender diversity for issuers incorporated under the CBCA. For further details see the legislative summary, the backgrounder, and these articles and blog posts from Canadian Lawyer, Blakes, BLG, DentonsFasken Martineau, Norton Rose Fulbright, and Osler.

Proposed regulations to Bill C-25, fleshing out the details of the changes to corporate law, were published December 14, 2016. They are discussed in blog posts from McCarthy Tetrault, Torys LLP and Blakes, and in this article from the CBA: CBA welcomes diversity measures in Bill C-25.

Bill C-30, Canada-European Union Comprehensive Economic and Trade Agreement Implementation Act, received royal assent May 16, 2017 and Bill C-31, An Act to implement the Free Trade Agreement between Canada and Ukraine, passed third reading in the Senate and is awaiting royal assent. These bills implement recently negotiated trade agreements. The legislative summaries provide further details.

Bill 49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts, was introduced and received first reading May 16, 2017. It aims to modernize transportation laws in Canada, improving freight rail safety and efficiency; liberalizing international ownership restrictions for Canadian air carriers; and establishing new air passenger rights.

Provincial 

Bill 2, The Securities Amendment Act, passed third reading May 19, 2017. As detailed in the explanatory note, it amends The Securities Act to provide for the automatic enforcement of sanctions, conditions, restrictions or requirements imposed by other securities regulators when there has been a finding or admission of a breach of securities laws or acts contrary to the public interest. 

Bill 3, The Pooled Registered Pension Plans (Manitoba) Act, passed third reading May 19, 2017. It provides the legal framework for certain pooled pension plans to be open to employees and self-employed persons in Manitoba. See the explanatory note for further detail.

Bill 7, The New West Partnership Trade Agreement Implementation Act (Various Acts Amended), passed third reading May 23, 2017. It amends three Acts so that Manitoba can join the above trade agreement, as well as participate in other future domestic trade agreements. Further details can be found in the explanatory note to the bill.

Bill 25, The Cannabis Harm Prevention Act (Various Acts Amended), was reported without amendment by the Justice Committee on May 17, 2017. It proposes amendments to several Acts to address health or safety concerns that will arise when cannabis consumption is no longer illegal (July 2018). For further information see the explanatory note.

Bill 30, The Local Vehicles for Hire Act, was introduced March 20, 2017. It would repeal The Taxicab Act and allow municipalities to make by-laws regulating the entire vehicle-for-hire industry. Further details can be found in the explanatory note to the bill and in this government news release.

Provinces Sign New Canadian Free Trade Agreement

Manitoba announced that it had reached an agreement with all Canadian provinces on a comprehensive new agreement covering trade in goods, services, investment and labour mobility on April 7, 2017. The Canadian Free Trade Agreement will take effect July 1, 2017, replacing the existing Agreement on Internal Trade (AIT), which has been in place since 1995. For further details see the general, timelines, and regulatory reconciliation backgrounders and this Miller Thomson article.

CASL Update

Two important changes to Canada’s Anti-Spam legislation will come into force July 1, 2017: first, the three year transition period allowing organizations to rely on deemed implied consent for sending commercial electronic messages will expire; and second, the private right of action provisions come into effect, allowing those affected by CASL contraventions to sue privately, including, presumably, by class action. These articles discuss the changes:
And, for a summary of recent CASL statistics as provided by the CRTC see:

Recommended Reading

Recent ransomware attacks and reports on cyber security by the Canadian Securities Administrators (Multilateral Staff Notice 51-347 Disclosure of cyber security risks and incidents) and the Canadian Chamber of Commerce (Cyber Security in Canada) have prompted a number of commentaries on the topic. Here are some examples:
Pitblado LLP has published several whitepapers on business law topics in the last few months:

4 Business Cases To Follow In The Supreme Court's Spring Term – this Bennett Jones post summarizes four cases the Supreme Court will hear this session addressing business law issues.

Commercial leases – this Canadian Lawyer article analyzes the changing nature of retail leases and the increasing complexity of long term leases.

Protecting trade secrets  – this Canadian Lawyer article questions whether Canada needs to strengthen its trade secrets law. 

Continuing Professional Development: LSM

Changes to Probate QBR –presenters from the Court of Queen’s Bench and the Public Trustee will discuss changes to QB Rules 74.12 and 74.14 (coming into effect on July 1, 2017) and clarify recommended practices at this lunch session on June 9, 2017.  Discounts are available for teleconference registrants.

Webinar: Avoiding Cyber Dangers – the Law Society is replaying this very practical webinar on June 13, 2017, with a live question period at the end with Law Society staff.  Legal technology and risk management guru Dan Pinnington will teach you how to protect yourself and your firm from hacked emails, malware, phishing scams, and other cybercrime vulnerabilities. Group registrants are eligible for discounts.

Summer CPD Replays: LSM

The CPD Replay schedule is now posted on the LSM website. If you missed attending one of these popular programs the first time around, replays are a cost effective way to catch up on your CPD hours during the slower paced summer months. Find a program and date that works for you, with a wide variety of programming topics offered from July 10 to 28, 2017.

Don't see a time that fits your schedule? These DVDs are available for purchase and can be viewed at your own convenience.

MBA Programs

Municipal By-law Enforcement Act and new Provincial Offences Act – Presenters at this Municipal Law section program will give an overview of changes designed to make the system of prosecuting regulatory and by-law offences more efficient. The program takes place June 1, 2017 from noon to 1:30 pm at 185 King Street (3rd floor).

What’s New in Manitoba Oil and Gas Regulation? – this June 6, 2017 lunch presentation will focus on what recent commitments to reduce methane emissions will mean to Manitoba and what changes will be required to meet those commitments. It takes place from noon to 1:30 pm in Room B - 155 Carlton Street.

Save the Dates: National Insolvency Law Conference and CCCA National Conference

These upcoming conferences may be of interest to business lawyers:

The CBA’s 13th National Insolvency Law Conference will be held September 14-15, 2017, in St. John's, Newfoundland and Labrador. Presenters will cover a wide range of topics from investigating and litigating fraud to the world of offshore financial centre insolvency and the latest Canadian case law. For further details see the conference agenda.

Beyond Borders: Business and Law in the Global Village – registration is now open for the 2018 CCCA National Conference and ICW Summit, which will take place April 29 - May 1, 2018, in Toronto.

 


ISSN 1916-3916

 

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