Articles 2023

Case comment on the Ontario Court of Appeal’s recent decision in Reaction Distributing Inc. v. Algonquin Highlands (Township), 2019 ONCA 433.

There are four substantive cases this week.

It was a light, yet eventful week at the Court of Appeal for Ontario.

Pre-Eng is one of a growing number of cases to adopt a narrower interpretation of the wording of a builder's risk insurance policy, finding that only the insured's actual interest in the property insured was covered by the policy.

Ever since the 1992 decision in Southridge Construction Group Inc. v. 667293 Ontario, section 48 of the Construction Act has been interpreted to the effect that once a lien is discharged, a claimant cannot lien again for services performed prior to the date of the perfection of the first, discharged lien. How has the uniform application of Southridge changed as a result of the recent decision in 9585800 Canada Inc. v. JP Gravel Construction, 2019 ONSC 3396 (S.C.J.)

Author Margaret Nixon, of Stikeman Elliott LLP, reviews the recent decision of the Tax Court of Canada in Prairielane Holdings Ltd. v. The Queen, 2019 TCC 157. In this case, the Court considers the deemed association rule in subsection 256(2.1) of the Income Tax Act and provides useful guidance on the legal principles that are applicable in determining whether one of the main reasons for the separate existence of two or more corporations is the reduction of tax.