I started my legal career in September 2008, which coincided with an unprecedented economic collapse. I received a crash course in recession-related legal advice. I advised clients about everything from quick fixes to Hail Mary attempts to support their workers and save their businesses. But it wasn’t until the last few weeks that I had to dust off my old playbook and again discuss these urgent, drastic measures with my employer clients. Some of these measures include:
In Firepower Debt GP Inc. v. TheRedPin, Inc., 2019 ONCA 903 (“Firepower”), the Ontario Court of Appeal recently affirmed a decision of Justice Penny that commissions held by an insolvent real estate brokerage but owed to real estate salespersons were not held in trust and were thus subject to the security of the brokerage’s lenders.
In a 2017 judgment discussed here, the Federal Court of Appeal permitted the CRA to assert a claim against a secured creditor who had received a repayment from its borrower prior to bankruptcy when the borrower also owed unremitted GST obligations to the Crown.