Case information

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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.

Bankruptcy and Insolvency – Environmental Law – Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 – Compromises and Arrangements – Claims – Nature of ministerial orders pursuant to s. 99 of Environmental Protection Act, S.N.L. 2002, c. E-14.2 – Whether a statutory duty to remove environmental contamination may be extinguished under the Companies’ Creditors Arrangement Act like a commercial debt.

The Minister of Environment and Conservation of Newfoundland and Labrador issued five ministerial orders (“EPA orders”) pursuant to s. 99 of the Environmental Protection Act, S.N.L. 2002, c. E-14.2, against Abitibi, requiring it to, among other things, complete environmental remediation of sites where it conducted large-scale industrial activities. At the time the orders were issued, the respondent Abitibi had filed for protection under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36 (“CCAA”). A claims procedure order was subsequently made, directing Abitibi’s creditors to file their proofs of claim by the claims bar date. The Province of Newfoundland and Labrador moved for an order declaring that the EPA orders were not barred or extinguished and their enforceability was not affected by that claims procedure order. The Province argued, among other things, that the statutory duty to remediate contaminated lands could not be considered a “claim” under the claims procedure order or the CCAA. In its view, the EPA orders were in relation to the environment and did not fall within the definition of “claim” contained in the CCAA. The Superior Court dismissed the motion. The Court of Appeal denied leave to appeal.