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Court File No.: 17-62183
SUPERIOR COURT OF JUSTICE
B E T W E E N:
TANDIA FINANCIAL CREDIT UNION LIMITED
Applicant
-and-
1322295 ONTARIO LTD.
Respondent
APPLICATION UNDER Subsection 243(1) of the Bankruptcy and Insolvency Act, R.S.C.
1985 c. B-3, as amended, Section 101 of the Courts of Justice Act, R.S.O. 1990 c. C.43, as
amended, and Rule 14.05(3)(g) and (h) of the Rules of Civil Procedure
MOTION RECORD OF THE RECEIVER
(Motion returnable October 29, 2019)
October 18, 2019 BAKER & McKENZIE LLP
Barristers and Solicitors
181 Bay Street, Suite 2100
Toronto, ON M5J 2T3
Jonathan D. Cocker (LSO# 40805U)
t: 416 865 6908 / f: 416 863 6275
Michael Nowina (LSO #49633O)
Email: [email protected]
Tel.: 416.865.2312 / Fax: 416 863 6275
Lawyers for the Receiver
Court File No.: 17-62183
SUPERIOR COURT OF JUSTICE
B E T W E E N:
TANDIA FINANCIAL CREDIT UNION LIMITED
Applicant
-and-
1322295 ONTARIO LTD.
Respondent
APPLICATION UNDER Subsection 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985
c. B-3, as amended, Section 101 of the Courts of Justice Act, R.S.O. 1990 c. C.43, as amended,
and Rule 14.05(3)(g) and (h) of the Rules of Civil Procedure
SERVICE LIST
TO: BAKER & MCKENZIE LLP
Brookfield Place
181 Bay Street, Suite 2100
Toronto, ON M5J 2T3
Jonathan D. Cocker (LSO# 40805U)
t: 416 865 6908 / f: 416 863 6275
Michael Nowina (LSO #49633O)
t: 416 865 2312 / f: 416 863 6275
Lawyers for the Receiver
- 2 -
AND TO: DALE & LESSMAN LLP
181 University Avenue, Suite 2100
Toronto, ON M5H 3M7
Nedko M. Petkov (LSO#66429U)
t: 416 369 7821 / f: 416 863 1009
Lawyers for Canada Mortgage and Housing Corporation
AND TO: SIMPSONWIGLE LAW LLP
One Hunter Street East, Suite 200
Hamilton, ON L8N 3W1
David J. Jackson (#AO15656R)
t: 905 528 8411, ext. 304 / f: 905 528 9008
Lawyers for the Applicant
AND TO: FOLKES LAW LPC
21 Queen Street East, Suite 900
Brampton, ON L6W 3P1
Ron E. Folkes
t: 905 457 2118 / f: 905 457 3707
Lawyers for the Respondent
AND TO: White Star Group of Companies
12 Walnut Street South
Hamilton, ON L8N 2K7
Cliff Lloyd
t: 905 962 5129
Lawyers for the Respondent, 1255717 Ontario Ltd. and Marino
Rakovac
- 3 -
AND TO: MEYER WASSENAAR & BANACH LLP
Royal Bank Building
5001 Yonge Street, Suite 301
North York, ON M2N 6P6
Martin G. Banach
t: 416 223 9191 / f: 416 223 9405
Lawyers for Mike Turtel, Marsha Turtel
and Meteric Investments Limited
AND TO: CANADA REVENUE AGENCY C/O DEPARTMENT OF
JUSTICE
The Exchange Tower
130 King Street West, Suite 3400
Toronto, ON M5X 1K6
Diane Winters
t: 416 973 3172 / f: 416 973 0810
Peter Zevenhuizen
t: 416 973 3172 / f: 416 973 0810
AND TO: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE
OF ONTARIO AS REPRESENTED BY THE MINISTRY OF
FINANCE
33 King Street West, 6th Floor
Oshawa, ON L1H 1A1
Kevin J. O'Hara
t: 905 433 6934 / f: 905 436 4510
AND TO: CITY OF HAMILTON
71 Main Street West
Hamilton, ON L8P 4Y5
Robert Divinski
t: 905 546 2424, ext. 6196
SERVICE LIST EMAILS
Court File No.: 17-62183
SUPERIOR COURT OF JUSTICE
B E T W E E N:
TANDIA FINANCIAL CREDIT UNION LIMITED
Applicant
-and-
1322295 ONTARIO LTD.
Respondent
APPLICATION UNDER Subsection 243(1) of the Bankruptcy and Insolvency Act, R.S.C.
1985 c. B-3, as amended, Section 101 of the Courts of Justice Act, R.S.O. 1990 c. C.43, as
amended, and Rule 14.05(3)(g) and (h) of the Rules of Civil Procedure
MOTION RECORD OF THE RECEIVER
(Motion returnable October 29, 2019)
INDEX
TAB NO. DESCRIPTION PAGE
NO.
1 Notice of Motion, returnable October 29, 2019 1
2 Second Report of the Receiver dated October 18, 2019 10
App. A Appointment Order dated August 22, 2017 20
App. B First Report of the Receiver with Appendices I and P 38
App. C Consent Endorsement dated December 11, 2018 183
- 3 -
TAB NO. DESCRIPTION PAGE
NO.
App. D Consent Agreement 188
App. E Ruling dated May 27, 2019 192
App. F Court Orders dated May 27, 2019 198
App. G Pinchin's Soil Vapour Assessment Report dated July 16, 2019 212
App. H Pinchin's Indoor Air Quality Assessment Report dated
September 6, 2019
251
App. I Pinchin's Groundwater Report dated September 10, 2019 287
App. J Stakeholder Update Letter dated September 27, 2019 297
App. K Notice of Termination of Lease dated October 3, 2019 300
App. L Whitestar letter dated October 6, 2019 305
App. M Letter to Whitestar dated October 11, 2019 310
Tab 1
Court File No.: 17-62183
SUPERIOR COURT OF JUSTICE
B E T W E E N:
TANDIA FINANCIAL CREDIT UNION LIMITED
Applicant
-and-
1322295 ONTARIO LTD.
Respondent
APPLICATION UNDER Subsection 243(1) of the Bankruptcy and Insolvency Act, R.S.C.
1985 c. B-3, as amended, Section 101 of the Courts of Justice Act, R.S.O. 1990 c. C.43, as
amended, and Rule 14.05(3)(g) and (h) of the Rules of Civil Procedure
NOTICE OF MOTION
(Returnable October 29, 2019)
THE FULLER LANDAU GROUP INC. in its capacity at the Court-appointed receiver
(the "Receiver") without security, of certain property of 1322295 Ontario Ltd. ("132" or the
"Debtor"), including, the real property located at 12 Walnut Street South, Hamilton, ON L8N
2K7 (the "Real Property"), shall make a motion to a Judge of the Court on Tuesday, October
29, 2019 at 10:00 am, or as soon after that time as the motion can be heard at the Court House
at 45 Main Street East, Hamilton, ON.
PROPOSED METHOD OF HEARING: The motion shall be heard orally.
1
- 2 -
THE MOTION IS FOR:
(a) an Order for directions from this Honourable Court, and in particular,
approving the notification of the Ministry of the Environment,
Conservation and Parks ("MECP") and adjacent landowners of the
groundwater contamination originating from the Real Property;
(b) if necessary, abridging the time for service of this Notice of Motion and
Motion Record and dispensing with further service hereof; and
(c) such other relief as this Honourable Court deems just.
THE GROUNDS FOR THE MOTION ARE:
1. On the application of Tandia Financial Credit Union Limited (the "Lender"), this
Honourable Court granted an order dated August 22, 2017 appointing the Receiver on
consent of the Lender and the Debtor (the "Appointment Order") which was effective
as of December 1, 2017.
2. The Real Property is a parcel of land developed with a two-storey commercial building
in downtown Hamilton with residential units in the basement and second floor. The
basement contains one residential unit. The main floor contains office spaces, and the
second floor contains additional residential units.
2
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3. The Real Property was occupied by Langley Parisian Ltd. a laundry and dry-cleaning
facility, for approximately 92 years. As has been reported by the Receiver in prior court
reports, the extent of environmental contamination at the Real Property is a significant
and contentious issue.
4. The Receiver engaged an environmental expert, Pinchin Ltd. to prepare reports on
these environmental issues including:
(a) an Indoor Air Quality Assessment dated September 6, 2019; and
(b) an Groundwater Monitoring and Elevation Survey dated September 10,
2019.
5. The Indoor Air Quality Assessment found that tetrachloroethylene (PCE) and
trichloroethylene (TCE) exceeded limits found in the Health Based Indoor Air
Criteria (HBIAC) for residential land use in a non-potable groundwater scenario at
several indoor air sampling locations, and subsurface vapours have the potential to
affect indoor air quality through their migration into the overlying building.
6. The Groundwater Monitoring and Elevation Survey concludes that the groundwater
flow is toward the north-northeast (i.e. towards Lake Ontario).
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7. In light of these reports, the Receiver has notified all tenants that they must vacate the
premises at the latest by February 29, 2020, and is also of the view that it must report to
MECP pursuant to the provisions of Ontario's Environmental Protection Act (EPA) and
should also report the issue to adjacent landowners.
8. The Receiver, while being of the view that it must notify, is also faced with the view of
the Debtor, 1255717 Ontario Ltd. and Marino Rakovac whose counsel has advised that
notification is premature and that his clients will be seeking the discharge of the
Receiver.
9. The Receiver is of the view that a motion for directions on notice to all interested
parties will allow all such parties to put forward their views regarding the intended
notification of the environmental issues.
10. The Receiver therefore seeks the advice and direction of this Honourable Court as
to whether in light of the information now known to the Receiver, the obligation to
notify the MECP has been triggered, and as such, the Receiver should notify the
MECP and adjacent landowners.
11. Section 249 and 250 of the Bankruptcy and Insolvency Act, Rules 3.02 and 37 of the
Rules of Civil Procedure.
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12. Such further and other materials as counsel may submit and this Honourable Court
may consider.
THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the
motion:
(a) Second Report of the Receiver dated October 18, 2019 and the
appendices thereto; and
(b) such further and other material as counsel may advise and this
Honourable Court may permit.
October 18, 2019 BAKER & MCKENZIE LLP
Brookfield Place
181 Bay Street, Suite 2100
Toronto, ON M5J 2T3
Jonathan D. Cocker (LSO# 40805U)
t: 416 865 6908 / f: 416 863 6275
Michael Nowina (LSO #49633O)
t: 416 865 2312 / f: 416 863 6275
Lawyers for the Receiver
5
- 6 -
TO: DALE & LESSMAN LLP
181 University Avenue, Suite 2100
Toronto, ON M5H 3M7
Nedko M. Petkov (LSO#66429U)
t: 416 369 7821 / f: 416 863 1009
Lawyers for Canada Mortgage and Housing Corporation
AND TO: SIMPSONWIGLE LAW LLP
One Hunter Street East, Suite 200
Hamilton, ON L8N 3W1
David J. Jackson (#AO15656R)
t: 905 528 8411, ext. 304 / f: 905 528 9008
Lawyers for the Applicant
AND TO: FOLKES LAW LPC
21 Queen Street East, Suite 900
Brampton, ON L6W 3P1
Ron E. Folkes
t: 905 457 2118 / f: 905 457 3707
Lawyers for the Respondent
AND TO: White Star Group of Companies
12 Walnut Street South
Hamilton, ON L8N 2K7
Cliff Lloyd
t: 905 962 5129
Lawyers for the Respondent, 1255717 Ontario Ltd. and Marino
Rakovac
6
- 7 -
AND TO: MEYER WASSENAAR & BANACH LLP
Royal Bank Building
5001 Yonge Street, Suite 301
North York, ON M2N 6P6
Martin G. Banach
t: 416 223 9191 / f: 416 223 9405
Lawyers for Mike Turtel, Marsha Turtel
and Meteric Investments Limited
AND TO: CANADA REVENUE AGENCY C/O DEPARTMENT OF
JUSTICE
The Exchange Tower
130 King Street West, Suite 3400
Toronto, ON M5X 1K6
Diane Winters
t: 416 973 3172 / f: 416 973 0810
Peter Zevenhuizen
t: 416 973 3172 / f: 416 973 0810
AND TO: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE
OF ONTARIO AS REPRESENTED BY THE MINISTRY OF
FINANCE
33 King Street West, 6th Floor
Oshawa, ON L1H 1A1
Kevin J. O'Hara
t: 905 433 6934 / f: 905 436 4510
7
- 8 -
AND TO: CITY OF HAMILTON
71 Main Street West
Hamilton, ON L8P 4Y5
Robert Divinski
t: 905 546 2424, ext. 6196
8
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Appli
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No:
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2183
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Jon
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t: 41
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416 8
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275
Mic
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Now
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LS
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49633O
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Em
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mic
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l.now
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bak
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com
Tel
.: 4
16.8
65.2
312 /
Fax
: 4
16 8
63 6
275
Law
yer
s fo
r th
e R
ecei
ver
9
Tab 2
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Appendix A
Appendix "A"20
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1
Appendix B
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