WestlawNext Canada insight Blog

Digest of the Week – Receivership Orders Not Subject to Collateral Attack

Digest of the Week – Receivership Orders Not Subject to Collateral Attack

Orders made under receivership proceedings could not be subject to collateral attack.



McDonald v. Brookfield Asset Management Inc.
2016 CarswellAlta 2308
Alberta Court of Appeal


Business associations --- Specific matters of corporate organization — Shareholders — Shareholders' remedies — Relief from oppression — Standing to apply — Miscellaneous

Plaintiff M moved to have action against defendant company certified — M claimed that company was liable for oppression, breach of good faith and negligent misrepresentation — Claims arose from company's valuation of investment property at approximately $1.6 billion, due to presence of limestone deposit — M claimed that improper stock trading practices caused value of company's share to collapse, leading to purchase of company by individual defendant for $50 million — Company claimed that M had no standing to bring action, and brought motion for summary judgment — Company's motion was granted — M appealed from judgment — Appeal dismissed — M's complaints regarding oppression were more properly those of corporation, not shareholders — Orders made under receivership proceedings could not be subject to collateral attack, as was being attempted by M — Evidence did not support M's claim that defendants conspired to obtain property, for less than actual value — Members of proposed class were not proper complainants, under applicable law of oppression.
© Copyright WestlawNext Canada, Thomson Reuters Canada Limited. All rights reserved.