Source: https://www.airdberlis.com/insights/publications/publication/clarity-in-appeal-procedures-part-ii-the-bia-prevails-or-does-it
Timestamp: 2019-04-24 10:43:51+00:00

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Clarity in Appeal Procedures Part II: The BIA Prevails – or Does It?
Insights > Publications > Clarity in Appeal Procedures Part II: The BIA Prevails – or Does It?
In January, we wrote about a decision of Justice Watt of the Ontario Court of Appeal, which addressed the question of which appeal procedure must be followed in appeals of Orders made in proceedings constituted under both the Bankruptcy and Insolvency Act (the “BIA”)1 and the Courts of Justice Act (the “CJA”).2 His decision in Business Development Bank of Canada v. Astoria Organic Matters Ltd. and Astoria Organic Matters Canada LP3 concluded that, even where the initial Order references both statutes, any appeal must follow the appeal procedures prescribed by s. 193 of the BIA and the Bankruptcy and Insolvency General Rules (the “BIA Rules”) due to Parliament’s exclusive jurisdiction over bankruptcy matters.
On its face, BDC v. Astoria complicates the analysis that must be conducted by a party when deciding how to appeal an Order made in a proceeding constituted under both the BIA and the CJA. The intended appellant must consider the statutory authority pursuant to which the specific Orders it seeks to appeal were granted, rather than simply relying on the fact that the proceeding was initiated under the BIA.
However, given Justice Zarnett’s conclusion that s. 243 of the BIA provides the Court with broad jurisdiction to grant such powers to receivers as are necessary, it is likely that the majority of Orders made in receivership proceedings will continue to find their source of authority in the BIA. Applicants seeking to commence court-supervised receivership proceedings may wish to consider whether any of the relief they are seeking depends exclusively on the CJA. If no such relief is being sought, it may be appropriate to eventually eliminate the reference to the CJA in the model order altogether.
Aird & Berlis LLP partners Steven Graff and Miranda Spence acted for the Receiver on the appeal of Justice Watt’s decision.
3 (7 January 2019), Toronto, M49872 (C65512) (Ont CA).
4 Business Development Bank of Canada v. Astoria Organic Matters Ltd., 2019 ONCA 269 [BDC v. Astoria].
5 Industrial Alliance Insurance and Financial Services Inc. v. Wedement Power Limited Partnership, 2018 BCCA 283 (B.C.C.A.) at para 21, cited in BDC v. Astoria at para 29.
6 BDC v. Astoria at para 31.
7 BDC v. Astoria at para 47, citing Saskatchewan (Attorney General) v. Lemare Lake Logging Ltd.,  3 SCR 419, 2015 SCC 53 at paras 45, 67.
8 BDC v. Astoria at para 51.
9 BDC v. Astoria at paras 37-42.
10 BDC v. Astoria at para 66.

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