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41043

Attorney General of Canada v. Richter Inc. (formerly Richter Advisory Group Inc.), et al.

(Quebec) (Civil) (By Leave)

Docket

Judgments on applications for leave to appeal are rendered by the Court, but are not necessarily unanimous.

List of proceedings
Date Proceeding Filed By
(if applicable)
2024-06-07 Close file on Leave
2024-06-06 Copy of formal judgment sent to Registrar of the Court of Appeal and all parties
2024-06-06 Judgment on leave sent to the parties
2024-06-06 Judgment of the Court on the application for leave to appeal, The application for leave to appeal from the judgment of the Court of Appeal of Quebec (Montréal), Number 500-09-029763-216, 2023 QCCA 1295, dated October 18, 2023, is dismissed with costs.
Dismissed, with costs
2024-05-06 All materials on application for leave submitted to the Judges, for consideration by the Court
2024-03-04 Applicant's reply to respondent's argument, (Book Form), Completed on: 2024-03-04, (Printed version filed on 2024-03-06) Attorney General of Canada
2024-02-27 Notice of name Canadian Imperial Bank of Commerce
2024-02-26 Certificate (on limitations to public access), (Letter Form), 23A, (Printed version filed on 2024-02-28) Canadian Imperial Bank of Commerce
2024-02-23 Notice of name, (Letter Form), (Printed version filed on 2024-02-28) Richter Inc. (formerly Richter Advisory Group Inc.)
2024-02-23 Certificate (on limitations to public access), (Letter Form), 23A, (Printed version filed on 2024-02-28) Richter Inc. (formerly Richter Advisory Group Inc.)
2024-02-23 Respondent's response on the application for leave to appeal, (Book Form), Missing:

- Proof of service (Rec'd 2024-02-26), Completed on: 2024-02-26, (Printed version filed on 2024-02-28)
Richter Inc. (formerly Richter Advisory Group Inc.)
2024-01-26 Order on motion to add or substitute parties, by CHANTAL CARBONNEAU
2024-01-26 Order on motion to extend time, by CHANTAL CARBONNEAU
2024-01-26 Decision on motion to add or substitute parties, Reg, UPON APPLICATION by the Canadian Imperial Bank of Commerce for an order to be added as a respondent in the above appeal and for an extension of time to serve and file the response to the application for leave to appeal, pursuant to Rules 6, 18 and 47 of the Rules of the Supreme Court of Canada;

AND THE MATERIAL FILED having been read;

IT IS HEREBY ORDERED THAT:

The motion is granted.

Canadian Imperial Bank of Commerce is hereby added as a respondent in the proceedings before this Court pursuant to Rule 18(1) of the Rules of the Supreme Court of Canada and the style of cause shall be modified to reflect this change.

The respondents shall serve and file their 30 page joint response to the application for leave to appeal within thirty (30) days from the date of this order.

Granted
2024-01-26 Decision on motion to extend time, see decision on motion to add party, Reg
Granted
2024-01-26 Submission of motion to add or substitute parties, Reg
2024-01-26 Submission of motion to extend time, Reg
2024-01-23 Response to motion to extend time, (Letter Form), (Included in the response to motion to add or substitute parties), Does not contest, Completed on: 2024-01-24 Attorney General of Canada
2024-01-23 Response to motion to add or substitute parties, Does not contest the motion, Completed on: 2024-01-23 Attorney General of Canada
2024-01-18 Notice of name, (Letter Form), (Printed version due on 2024-01-25) Canadian Imperial Bank of Commerce
2024-01-18 Motion to extend time, (Book Form), (Included in the motion to add or substitute parties), Completed on: 2024-01-19, (Printed version filed on 2024-01-19) Canadian Imperial Bank of Commerce
2024-01-18 Motion to add or substitute parties, (Book Form), Missing:
-Filing fees (Rec'd 2024-01-22), Completed on: 2024-01-23, (Printed version filed on 2024-01-19)
Canadian Imperial Bank of Commerce
2023-12-19 Letter acknowledging receipt of an incomplete application for leave to appeal, FILE OPENED 2023-12-19
2023-12-18 Certificate (on limitations to public access), (Letter Form), 23A, (Printed version filed on 2023-12-19) Attorney General of Canada
2023-12-18 Application for leave to appeal, (Book Form), (2 volumes), Completed on: 2023-12-20, (Printed version filed on 2023-12-19) Attorney General of Canada

Parties

Please note that in the case of closed files, the “Status” column reflects the status of the parties at the time of the proceedings. For more information about the proceedings and about the dates when the file was open, please consult the docket of the case in question.

Main parties

Main parties - Appellants
Name Role Status
Attorney General of Canada Applicant Active

v.

Main parties - Respondents
Name Role Status
Richter Inc. (formerly Richter Advisory Group Inc.) Respondent Active
Canadian Imperial Bank of Commerce Respondent Active

Counsel

Party: Attorney General of Canada

Counsel
Names
Kim Sheppard
George Bódy
Arianne Gauthier
Contact information
Attorney General of Canada
Department of Justice Canada, National Litigation Sector
200 René-Lévesque Blvd. West, East Tower, 9th Floor
Montréal, Quebec
H2Z 1X4
Telephone: (514) 283-8460
FAX: (514) 283-8427
Email: kim.sheppard@justice.gc.ca
Agent
Name
Christopher Rupar
Contact information
Deputy Attorney General of Canada
Department of Justice Canada, National Litigation Sector
50 O’Connor Street
Ottawa, Ontario
K1A 0H8
Telephone: (613) 941-2351
FAX: (613) 954-1920
Email: christopher.rupar@justice.gc.ca

Party: Richter Inc. (formerly Richter Advisory Group Inc.)

Counsel
Names
Hugo Babos-Marchand
Frédérique Drainville
Gabriel Faure
Simon Bouthillier
Contact information
McCarthy Tétrault LLP
Suite MZ400
1000 De La Gauchetière Street West
Montréal, Quebec
H3B 0A2
Telephone: (514) 397-4100
FAX: (514) 875-6246
Email: hbmarchand@mccarthy.ca

Party: Canadian Imperial Bank of Commerce

Counsel
Names
Harvey G. Chaiton
Laura Culleton
Contact information
Chaitons LLP
5000 Yonge Street
10th floor
Toronto, Ontario
M2N 7E9
Telephone: (416) 218-1129
FAX: (416) 218-1849
Email: harvey@chaitons.com
Agent
Name
Marie-France Major
Contact information
Supreme Advocacy LLP
340 Gilmour Street
Suite 100
Ottawa, Ontario
K2P 0R3
Telephone: (613) 695-8855 Ext: 102
FAX: (613) 695-8580
Email: mfmajor@supremeadvocacy.ca

Summary

Keywords

Bankruptcy and insolvency — Priority — Source deductions — Priming charges — Employee source deductions not remitted to Crown by companies in receivership — Property of debtor companies subject to deemed trust in favour of Crown for unremitted source deductions under Income Tax Act — Application judge supervising restructuring proceedings under Bankruptcy and Insolvency Act (“BIA”) ordering priming charges and ranking charges over Crown’s deemed trust — Court of Appeal finding application judge had authority to make order — Whether superior courts, in proposal proceedings under BIA, have jurisdiction to rank court-ordered priming charges in priority to Crown’s super-priority deemed trust for unremitted source deductions — Whether Court of Appeal erred in determining that superior courts can use either statutory provisions of BIA or inherent jurisdiction to issue order — Whether Court of Appeal erroneously relied on Canada v. Canada North Group Inc., 2021 SCC 30, decided under different statute, to arrive at similar result under BIA — Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), ss. 224 — Bankruptcy and Insolvency Act, R.S.C. 1985, ss. 50.6, 60(1.1), 64.1, 64.2, 67 — Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, ss. 11, 11.2, 11.51, 11.52.

Summary

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Two debtor companies owed over $3.1 million in unremitted source deductions, pursuant to federal and provincial legislation. The federal Crown’s claim for source deductions was protected by the Income Tax Act (“ITA”) through a statutory deemed trust mechanism. Faced with liquidity problems, the debtors sought protection from creditors, including the respondent Canadian Imperial Bank of Commerce (“CIBC”), under the proposal provisions of the Bankruptcy and Insolvency Act (“BIA”), with the respondent Richter Inc. named as proposed trustee. The debtors also filed a motion for relief, including the granting of certain “priming” charges (a charge for interim financing; an administration charge; and a directors’ and officers’ charge). The application judge at the Superior Court of Quebec ordered that the three priming charges ranked in priority over all other interests, including any deemed trust in favour of the Crown pursuant to the ITA. The Court of Appeal dismissed Canada’s and Quebec’s appeals.

Lower court rulings

October 27, 2021
Superior Court of Quebec

500-11-060355-217

Motion for relief — granted


October 18, 2023
Court of Appeal of Quebec (Montréal)

2023 QCCA 1295

Appeals filed by Attorney General of Canada and Agence du revenu du Québec — dismissed

Filed documents

The memorandums of argument on an application for leave to appeal will be posted here 30 days after leave to appeal has been granted unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of the memorandum by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613-996-8666 or at 1-844-365-9662.

If you have questions about a memorandum of argument or want to use a memorandum of argument, please contact the author of the memorandum of argument directly. Their name appears at the end of the memorandum of argument. The contact information for counsel is found in the “Counsel” tab of this page.

Downloadable PDFs

Not available

The factums of the appellant, the respondent and the intervener will be posted here at least 2 weeks before the hearing unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of factums by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613-996-8666 or at 1-844-365-9662.

If you have questions about a factum or want permission to use a factum, please contact the author of the factum directly. Their contact information appears on the first page of each factum.

Downloadable PDFs

Not available

The condensed books of the appellant, the respondent and the intervener will be posted here upon receipt of the electronic version, 2 days prior to the scheduled appeal hearing. You may also obtain copies of condensed books by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613-996-8666 or at 1-844-365-9662.

If you have questions about a condensed book or want permission to use a condensed book, please contact the author of the condensed book directly. Their contact information appears on the first page of each condensed book.

Downloadable PDFs

Not available

Webcasts

Not available.

Date modified: 2025-02-27