Bankruptcy and Insolvency: Corporate Attribution Doctrine

Ernst & Young Inc., et al. v. Aquino, et al., 2022 ONCA 202 (40166)
The Applicant, John Aquino, was the directing mind of Bondfield Construction Company Limited and its affiliate, 1033803 Ontario Inc., commonly known as Forma-Con (“debtor companies”). He and the other Applicants carried out a false invoicing scheme over a number of years by which they siphoned off tens of millions of dollars from both debtor companies. The Respondents challenged the false invoicing scheme and sought to recover some of the money under s. 96 of the Bankruptcy and Insolvency Act and s. 36.1 of the Companies’ Creditors Arrangement Act. They asserted the false invoicing scheme was implemented by means of transfers at undervalue by which Mr. Aquino and the debtor companies intended to defraud, defeat or delay a creditor. The Applicants asserted the principles of the common law doctrine of corporate attribution set out in Canadian Dredge & Dock Co. v. The Queen, [1985] 1 S.C.R. 662, did not permit the imputation of Mr. Aquino’s intention to either debtor company. The application judge imputed the fraudulent intention of Mr. Aquino to the corporate debtors. The Ont. C.A. dismissed the Applicants’ appeals. “The application for leave to appeal…is granted with costs in the cause.”


Criminal Law: Long-Term Offenders

L.A. v. R., 2021 QCCA 352 (40209)
There is a publication ban in this case, in the context of violent offences against two victims with whom the accused had been in conjugal relationships. “The motion for extension of time to serve and file the application for leave to appeal is granted. The application for leave to appeal…is dismissed.”

Civil Litigation: Motions to Strike

Kinlock v. Jetté, et al., 2021 QCCA 1920 (40135)
The Applicant, Mr. Kinlock, brought an application in the Québec Superior Court to annul a transaction and to order damages. The court dismissed his application, declared it was abusive and ordered him to pay damages to the Respondents. The Qué. C.A. dismissed the Applicant’s application for leave to appeal. “The application for leave to appeal…is dismissed without costs.”