Corporate Governance Considerations During the Covid-19 Pandemic

Sabrina Saltmarsh, B.A. (Hons), J.D.Business Interruption, Business Law, Business Litigation, Business Torts | Economic Torts, By-laws, Closely-Held Business Disputes, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Law, Commercial Leasing, Commercial List Matters, Commercial Litigation, Contract Disputes, Coronavirus, Corporate Disputes, Corporate Litigation, COVID-19, Derivative Actions, Directors' and Officers' Liability, Family Business Disputes, Oppression Remedies, Partnership Dispute, Partnerships and Shareholder Disputes, Retail Disputes, Retail Litigation, Sale of Business Disputes, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

Corporate governance issues are top of mind for directors and businesses who are attempting to navigate through the Covid-19 Pandemic related closures and emergency measures. Boards of Directors still need to operate and make decisions in the best interests of the corporation, and this can involve tough decisions, particularly where there is little guidance as to how measures to lift Covid-19 related restrictions will play out. By example, while it may be in the best interest of investors and shareholders that the Board act to lay off employees in the short term, the impact of staff shortages when Covid-19 restrictions are lifted may pose it’s own challenges. Many businesses must consider how to hold governance meetings during Covid-19 times. On March 30, 2020, Ontario passed an Order under the Emergency Management and Civil Protection Act (EMCPA), (Ontario Regulation 107/20) entitled “Meetings for Corporations” making temporary changes to the Business Corporations … Read More

Small Business Relief Resources During COVID-19 / Coronavirus

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Business Interruption, Civil Litigation, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Leasing, Commercial Lending, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Creditors Rights, Debt and Enforcing Judgments, Distribution Agreements, Event Cancellation, Event Termination, Force Majeure, Franchise | Licensing, Government Action, Loan and Guarantee, Mortgage Enforcement, Mortgage Litigation, Real Estate Litigation, Retail Disputes, Retail Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

On April 14, 2020, the Ontario legislature passed a bill during an emergency sitting to extend the state of emergency to May 12, 2020. The state of emergency in Ontario was initially declared on March 17, 2020, and subsequently extended to April 14, 2020.  Under the Emergency Management and Civil Protection Act, any further extensions must be passed by the legislature, and can only be extended for additional periods of no more than 28 days.  On May 12, 2020, the state of emergency was extended to June 2, 2020 (Updated: May 12, 2020). Although the extension of the state of emergency does not automatically apply to individual orders such as the closure of non-essential businesses, it is expected the mandatory closure of non-essential businesses will be extended as well to combat the COVID-19 pandemic.  In addition, many small businesses (deemed essential) have voluntarily closed due to safety concerns for their … Read More

Expedited Arbitration Arbitrators

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorArbitrators, Brokerage Arbitrator, Business Arbitrator, Business Dispute Arbitrator, Commercial, International Joint Venture Arbitrator, Internet Arbitrator, Investment Arbitrator, IT Arbitrator, Joint Venture Arbitrator, Licensing Arbitrator, Marine Arbitrator, Partnership Dispute Arbitrator, Real Estate Arbitrator, Reinsurance Arbitrator, Sale of Goods Arbitrator, Shareholder Dispute Arbitrator, Technology Arbitrator0 Comments

Expedited Arbitration Sole Arbitrator – from $450.00 per hour, plus HST Sometimes an arbitration clause provides for expedited arbitration proceedings, with time limits by stated duration for claims submissions (pleadings), discovery of documents (by request) and an early arbitration hearing date and award publication. Agreed Expedited Arbitration  On other occasions the arbitration clause does not provide expressly for an expedited arbitration procedure, but neither does it prohibit that.  If the parties agree, then an expedited arbitration procedure or simplified arbitration procedure for the arbitration can be directed by the arbitrator. An expedited arbitration procedure will usually be agreed at the preliminary, or first, meeting and result in a procedural order covering the entire duration of the expedited arbitration from exchange of  written submissions (pleadings) up to the date of the hearing and publication of the award. Some Reasons for an Expedited Arbitration There are lots of reasons the parties may … Read More

Toronto COVID-19 / Coronavirus Lawyers and Legal Services

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorCommercial, Commercial Arbitration, Commercial Litigation, Coronavirus, COVID-190 Comments

COVID-19 Practice Group In the rapidly evolving pandemic, the lawyers at Gilbertson Davis LLP have promptly published blogs and other online content concerning the effects of COVID-19 on matters within our respective practice areas. COVID-19 Litigation and Arbitration Resources  These are conveniently indexed and accessible through our COVID-19 webpage. If your concern relates to: Contracts and COVID-19 Event Cancellation Due to COVID-19 Condo Law and COVID-19 Family Law and COVID-19 Real Estate | Commercial Leasing and COVID-19 Construction and COVID-19 Wills and Estates – Coronavirus COVID-19 and the Courts Arbitration During the Pandemic you may find Coronavirus / Covid-19 Litigation & Arbitration Resource here. Contact Gilbertson Davis LLP If you have enquiries or require legal advice or representation concerning events arising from the COVID-19 / Coronavirus pandemic, please contact the Intake Coordinator at Gilbertson Davis LLP at 416 979 2020, ext 223, by email info@gilbertsondavis.com, or though the Contact Us … Read More

COVID-19 / Coronavirus: Are Closing Dates Extended Due to Construction Sites Closing?

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Arbitration, Civil Litigation, Commercial, Condo Construction, Condo Litigation, Construction | Builders, Construction Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Force Majeure, Real Estate | Developers, Real Estate Arbitrator, Real Estate Litigation0 Comments

On April 3, 2020, the Ontario government ordered that further non-essential businesses must close by April 4, 2020 at 11:59 p.m. including closing down most construction sites in order to flatten the curve of the COVID-19 pandemic.  The number of essential businesses was reduced from 74 to 44.  The revised list of essential businesses can be found here. Construction sites related to the healthcare sector, provincial infrastructure such as transit, and projects related to the production of ventilators and other products directly related to fighting COVID-19 were permitted to remain open.  Residential construction sites were permitted to remain open where: (i) a footing permit has been granted for single family, semi-detached and townhouses; (ii) an above grade structural permit has been granted for condominiums; or (iii) the work was related to renovations and started before April 4, 2020. Given the expansive definition of essential residential construction sites, it appears that … Read More

The Impact of Covid-19 / Coronavirus On Franchise Disclosure Obligations

Sabrina Saltmarsh, B.A. (Hons), J.D.Business Interruption, Business Litigation, Commercial, Commercial and Contract Litigation, COVID-19, Force Majeure, Franchise | Licensing, Franchise Law, Government Action, Retail Disputes, Retail Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

The Covid-19 / Coronavirus pandemic has disrupted social and economic life globally and here in Ontario. It is apparent that the Covid-19 pandemic, resulting closures and physical distancing measures implemented by various governments will have a considerable impact on investment decisions in the franchise context. In this blog we consider the impact of the Covid-19 pandemic on current and shortly anticipated franchise disclosure obligations. The Crucial Role Of Franchise Disclosure The franchise disclosure obligations which arise during a franchise purchase or franchise renewal process are critical for both franchisees and franchisors. It provides crucial information to a franchisee so that they can make a fully informed investment decision, and sets the groundwork and expectations on behalf of the franchisor to ensure the relationship is off to a good start and lasts to the mutual benefit of both parties. Updating Franchise Disclosure With Covid-19 / Coronavirus Impact Considerations Franchisors who are … Read More

Remote Arbitration Hearings | Remote Court Hearings – Emerging Protocols for COVID-19 / Coronavirus

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorArbitration, Business Dispute Arbitrator, Commercial, Commercial Litigation, Coronavirus, COVID-19, International Commercial Arbitrator, Marine Arbitrator0 Comments

“It is the duty of all the parties to seek to co-operate to ensure that a remote hearing is possible.” ~ Justice Teare  (Commercial Court, a Queen’s Bench Division of the High Court of Justice, England and Wales) Protocols on the use of video conferencing in arbitration and court hearings are emerging: Remote Arbitration Hearings The Seoul Protocol on Video Conferencing in International Arbitration was drafted and discussed by a panel of arbitration practitioners in 2018, consisting of Kap-You (Kevin) Kim as moderator (Partner, Peter & Kim), Yu-Jin Tay (Partner, Mayer Brown), Ing Loong Yang (Partner, Latham & Watkins LLP) and SeungMin Lee (Partner, Shin & Kim), and has been revised to reflect comments from the Seoul International Dispute Resolution Center (released March 18, 2020). Remote Court Hearings  The Ontario Superior Court of Justice Practice Directions and Notices regarding COVID-19 (updated March 31, 2020) has published the Notice Regarding Videoconference … Read More

Divorce and Separation: Who gets the family pet?

Gilbertson Davis LLPCommercial, Custody and Access, Division of Property, Separation, Separation Agreements0 Comments

Upon separation or divorce, a contentious issue is often which party gets to keep the family pet. Despite furry friends often being just as important to the family as children, Ontario’s courts have refused to make custody orders in respect of family pets. Justice Timms in Warnica v Gering stated “Whether in the Family Court or otherwise, I do not believe that any court should be in the business of making custody orders for pets, disguised or otherwise…  Obviously, I acknowledge that pets are of great importance to human beings.  Strong bonds develop between them and the human beings that look after them.  To some people, the relationship with their pets takes on a significance exceeding that of any other.  They go to extraordinary lengths to preserve that relationship; even at a cost that some would say is disproportionate.  Some may consider them to be children; however, they are not children.” … Read More

COVID-19 / Coronavirus: How to Schedule an Urgent Civil or Commercial List Hearing

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Civil Litigation, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Law, Commercial Leasing, Commercial List Matters, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Injunction & Specific Performance, Real Estate Litigation0 Comments

On March 15, 2020, the Chief Justice of the Ontario Superior Court of Justice released a Notice to the Profession advising that all scheduled civil hearings were adjourned until further notice.  The Notice to the Profession provides a procedure to schedule urgent and time-sensitive motions and applications where immediate and significant financial repercussions may result without a hearing.  When motion or application materials are filed, by email to the appropriate courthouse, seeking an urgent hearing, the triage judge will determine whether or not the matter is urgent and should be scheduled for a hearing. There have been a few recent endorsements reported in respect to the scheduling of urgent commercial lease matters. Urgent Motion – Relief From Forfeiture In Oppong v. Desoro Holdings Inc., 2020 ONSC 1697, the applicant sought relief from forfeiture to set aside the landlord’s termination of the lease.  Although the application was brought promptly and scheduled to be … Read More

Arbitration & Court Closure Due to COVID-19 / Coronavirus

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorAgency Arbitrator, Alternative Dispute Resolution (ADR), Arbitration, Arbitrators, Brokerage Arbitrator, Business Arbitrator, Business Dispute Arbitrator, Commercial, Commercial Arbitration, Commercial Arbitrator, Commercial Lease Arbitrator, Condo Arbitrator, Coronavirus, COVID-19, Employment Dispute Arbitrator, Energy Arbitrator, Franchise Arbitrator, Infrastructure Arbitrator, International Commercial Arbitrator, International Joint Venture Arbitrator, Internet Arbitrator, Investment Arbitrator, IT Arbitrator, Joint Venture Arbitrator, Labour Arbitrator, Licensing Arbitrator, Marine Arbitrator, Maritime Arbitrator, Partnership Arbitrator, Partnership Dispute Arbitrator, Real Estate Arbitrator, Reinsurance Arbitrator, Sale of Goods Arbitrator, Shareholder Arbitrator, Shareholder Dispute Arbitrator, Technology Arbitrator, Transportation Arbitrator0 Comments

Litigants and lawyers requiring timely resolution of disputes and who have no or limited access to the courts for trials or other hearings because of COVID-19 / Coronavirus related court closures, or for whom a public court-centered proceeding is inappropriate, may wish to consider arbitration as an alternative to litigation. In-person, video or teleconferencing determinations of arbitrated disputes at reasonable rates can resolve procedural and substantive issues more quickly than our courts in the current COVID-19  / Coronavirus related crisis, and very often in ordinary circumstances where congested dockets unfortunately preclude expedited case determinations. With the consent of the parties to litigation, and at virtually any stage of the litigation, an ad hoc arbitration can be arranged. Arbitration may be the forum best suited to the resolution of your dispute across a broad range of practice areas. Please see the Gilbertson Davis LLP Arbitration & Mediation Chambers webpage, and  other … Read More

Contract Arbitrator – Event Cancellation Dispute Arbitrator, Force Majeure Clause Dispute – Reasonable Fees and Good Availability – Gilbertson Davis LLP Arbitration and Mediation Chambers

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorAgency Arbitrator, Arbitration, Arbitrators, Brokerage Arbitrator, Business Arbitrator, Business Dispute Arbitrator, Civil Litigation, Commercial, Commercial Arbitration, Commercial Arbitrator, Commercial Contracts, Commercial Lease Arbitrator, Condo Arbitrator, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Employment Dispute Arbitrator, Energy Arbitrator, Enforcement of Foreign Arbitral Awards, Franchise Arbitrator, Infrastructure Arbitrator, International Commercial Arbitrator, International Joint Venture Arbitrator, Internet Arbitrator, Investment Arbitrator, IT Arbitrator, Joint Venture Arbitrator, Licensing Arbitrator, Marine Arbitrator, Maritime Arbitrator, Partnership Arbitrator, Partnership Dispute Arbitrator, Real Estate Arbitrator, Reinsurance Arbitrator, Sale of Goods Arbitrator, Shareholder Arbitrator, Shareholder Dispute Arbitrator, Technology Arbitrator, Transportation Arbitrator0 Comments

Contract Dispute Arbitrator  Sole Arbitrator – $450.00 per hour, plus HST An arbitrator, or an arbitration tribunal, obtains jurisdiction to adjudicate and decide a dispute from an agreement / contract which has been made by the parties to the arbitration. This jurisdiction is not typically provided by legislation, though there are exceptions, such as the arbitration provision deemed by statute to be included in a condominium declaration. Even if there is no arbitration clause in the contract or agreement made by the parties and a dispute arises, then parties to that contract may still agree to have their dispute determined by arbitration. The parties to a contract may prefer to have a dispute determined by arbitration, since it is presumptively a confidential process, it may be faster and less expensive than going to court, or they may wish to participate in the selection of the adjudicator. Common Contractual Issues Arbitrated … Read More

Measures of Last Resort – The Benefits of Exit Provisions in Shareholder’s Agreements

Sabrina Saltmarsh, B.A. (Hons), J.D.Business Law, Business Litigation, Business Torts | Economic Torts, Civil Litigation, Closely-Held Business Disputes, Commercial, Commercial and Contract Litigation, Commercial Contracts, Corporate Disputes, Family Business Disputes, Non-Compete, Non-Competition Agreement, Non-Solicitation Agreement, Non-Solicitation Clause, Oppression Remedies, Sale of Business Disputes, Shareholder Disputes0 Comments

The benefits of a shareholder’s agreement may not be fully considered when parties are intending to go into business together and become joint shareholders in a corporation. Perhaps the mood is optimistic and none of the participants anticipate that things might sour between them down the road. Sometimes corporations are formed absent such an agreement. However, among other benefits, these agreements become particularly useful in managing risk and guiding shareholders through governance issues and disputes that may arise, efficiently so as to minimize disruption to the corporation’s business. Absent a shareholder’s agreement, shareholders in a closely held corporation that cannot see eye-to-eye regarding the operation and path of the corporation, may become stuck in a deadlock where decision-making is effectively stifled due to a stalemate between them. Shareholder’s agreements can serve to provide mechanisms to address deadlock, protect the voice and rights of minority shareholders, provide a road map for … Read More

When Shareholders Need an Auditor or Inspector

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorBusiness Dispute Arbitrator, Business Disputes, Commercial, Commercial List Matters, Commercial Litigation, Corporate Litigation, Directors' and Officers' Liability, Financial Services | Investment, Fraud Recovery, Injunction & Specific Performance, Mareva Injunction, Norwich Order, Oppression Remedies, Preservation Orders0 Comments

I address here in a general way the procedures available for a shareholder or group of shareholders seeking the assistance of the court to have an auditor or inspector appointed. Financial Statements  – None or Inaccurate  Shareholders in closely-held Ontario corporations sometimes have concerns about the accuracy of the financial statements when the company does not have an auditor. Oppressive or Unfairly Prejudicial Conduct In other cases, a shareholder in an Ontario corporation may consider that the corporation has been carried on, or the powers of the directors are, or have been, exercised, in a manner that is oppressive or unfairly prejudicial to, or that unfairly disregards, the interests of the shareholder. Corporation and Fraud One or more shareholders may have concerns that the corporation’s business is, or has been, carried on with the intent to defraud,  that the corporation was formed or dissolved for a fraudulent or unlawful purpose, … Read More

Hurdles To Recognition and Enforcement Of Foreign Judgments

Sabrina Saltmarsh, B.A. (Hons), J.D.Commercial, Cross-Border Litigation, Debt and Enforcing Judgments, Enforcement of Foreign Arbitral Awards, Enforcement of Foreign Judgments, Interjurisdictional Disputes, International Litigation, International Sale of Goods, International Sale of Goods Arbitrator, International Trade Fraud, International Traders, Jurisdictional Challenges, Letters Rogatory, Of Interest to US Counsel, Offshore, Request for International Judicial Assistance0 Comments

In the recent Ontario Court of Appeal decision of H.M.B. Holdings Limited v. Antigua and Barbuda, 2020 ONCA 12, the Court of Appeal rendered a split (2-1) decision regarding the recognition of a foreign judgment which muddies the waters on the analysis to be applied to s.3(b) of the Reciprocal Enforcement of Judgments Act, R.S.O. 1990, c. R.5 (REJA) Original Judgment: In this case H.M.B. Holdings Limited (HMB) was successful in obtaining judgment on February 26, 2014, against Antigua and Barbuda from the Judicial Committee of the Privy Council (the JCPC), which is the highest court of appeal for certain British territories and Commonwealth countries including Antigua and Barbuda. The case related to damages sought by HMB due to the expropriation of resort lands by the Antiguan government. The case has garnered some media attention because of the manner in which the lands were expropriated. HMB then brought a common law … Read More

Judgment Against Anonymous Blogger – Service on Pseudonym

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorCommercial, Information Technology, Internet | Technology, Online Defamation0 Comments

In the recent decision of the Ontario Superior Court of Justice, Theralase Technologies Inc. v. Lanter, 2020 ONSC 205, (“Theralase Technologies Inc.”)  the court granted judgment in libel against anonymous and unidentified bloggers. In his reasons, Justice Myers held that the court has jurisdiction to grant judgment against unidentified defendants, despite the fact that the plaintiffs and the court do not know the defendant’s name, for defamatory statements published on the internet, “where a form of service can reasonably be expected to bring court proceedings to the attention of an unidentified defendant at whom the litigation finger has been appropriately pointed…” While noting that nothing in the Rules of Civil Procedure anticipates final judgments being granted against unidentified defendants, because civil proceedings generally involve claims and judgments in personam (against a person), the court observed that there are many cases started with placeholder names like “John Doe” pending the identification of … Read More

Profit Not Required to Find Use of Trademark in Normal Course of Trade

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorAppellate Advocacy, Brand Protection, Commercial, Distribution Agreements, Trademark Infringement0 Comments

The Federal Court of Appeal in Cosmetic Warriors Limited v. Riches, McKenzie & Herbert LLP, 2019 FCA 48, set aside the decision and allowed the appeal of the Federal Court judgment allowing an appeal from a decision of the Registrar of Trade-marks, made through her delegate, a hearing officer of the Trade-marks Opposition Board, that found that the trademark had been used in the “normal course of trade” within the meaning of subsection 4(1) of the Trademarks Act, RSC 1985, c T-13 ( the “Act”) and thus maintained the registration of a trade-mark in a proceeding challenging the registration for non-use under section 45 of the Act. In issue was the trade-mark “LUSH,” as registered for use in association with “[c]lothing, namely, t-shirts.” In its decision, the Federal Court of Appeal described that: “The T-shirts and tank tops bearing the LUSH trade-mark are sold by Lush Canada in limited quantities … Read More

Liability of Directors and Officers | Oppression Remedy | Shareholders Claims

David Alderson, LL.B, LL.M (Commercial and Corporate), Lawyer, Qualified Arbitrator and MediatorBusiness Disputes, Business Fraud, Business Litigation, Business Torts | Economic Torts, Closely-Held Business Disputes, Commercial, Commercial Litigation, Directors' and Officers' Liability, Embezzlement, Family Business Disputes, Mareva Injunction, Norwich Order, Oppression Remedies, Partnerships and Shareholder Disputes, Shareholder Disputes, Start-Up Disputes0 Comments

The lawyers in our Business Dispute Practice Group have acted in Ontario and other jurisdictions for small, mid-sized and large corporations (incorporated in Ontario and in Canada), shareholders, directors, officers, and executives in corporate disputes and shareholder disputes. We have acted for clients in both oppression remedy action and derivative actions. Oppression Remedy The oppression remedy is a mechanism in the Ontario Business Corporations Act and the Canada Business Corporations Act to protect the interests of shareholders and stakeholders in a corporation against wrongful conduct.  Whether the Ontario or Canada Act will apply depends on the jurisdiction in which the corporation was incorporated. The oppression remedy can be used to protect the interests of shareholders, directors, officers or creditors against the acts of other shareholders, the board of directors or other affiliates of the corporation. The oppression remedy can be used to protect the interests of shareholders, directors, officers or creditors against the … Read More