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)
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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.
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“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.
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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, Dentons,
Fasken
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.
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Provinces Sign New Canadian Free Trade Agreement
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:
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Recommended Reading
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.
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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.
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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.
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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.
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ISSN 1916-3916
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