Buyer can’t void purchase of contaminated land

Buyer can’t void purchase of contaminated land

Crosslink Bridge Corp. (Crosslink) purchased contaminated land from CN Railway (CN) in 2008 to develop a tourism, entertainment, retail and sports venue in the Niagara region. Crosslink received a box of environmental reports, including the Certificate of Requirement (also registered on title) that revealed the existence of a Ministry of the Environment Director's order relating to a risk assessment of the contamination. It was not clear, however, whether Crosslink had actually received the  

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Perverse Abitibi test produces perverse results in Nortel, Northstar appeals

Perverse Abitibi test produces perverse results in Nortel, Northstar appeals

The Ontario Court of Appeal has released its decisions in the Ministry of the Environment's appeals from Justice Geoffrey Morawetz in Re Nortel and Re Northstar. In both cases, Justice Morawetz rejected MOE attempts to claim priority over secured creditors by ordering insolvent companies to cleanup historic contamination. In both cases, Justice Morawetz decided that the orders amounted to unsecured financial claims, and were therefore to be funded only after the secured creditors were paid. The  

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Why the Supreme Court decision in AbitibiBowater won’t work

Why the Supreme Court decision in AbitibiBowater won’t work

We have written several times about the Supreme Court of Canada's decision in AbitibiBowater v. Newfoundland, in which insolvency law trumped environmental orders. Today, we want to tell you more about the rule the court laid down, and why it is likely to have perverse consequences. In short, the Supreme Court ruled that environmental orders can jump the insolvency queue, and take priority over other creditors, but only when the province is NOT likely to pay for the work itself. For a brief  

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