CIVIL PROCEDURE - Contempt of court - Judgments and orders - Disobedience of or non-compliance with

Law360 Canada ( November 4, 2022, 6:25 AM EDT) -- Motion by the Receiver that Gutierrez was in contempt of court for breaching the Appointment Order and a subsequent order of Justice McEwen. Xela was a privately-owned Ontario family holding company. Gutierrez was the sole common shareholder and a director of Xela. Justice McEwen granted the Appointment Order and appointed KSV Restructuring Inc. as the receiver of Xela (Receiver) over the property and assets of Xela in connection with her efforts to enforce the judgment. The Receiver’s counsel sent Gutierrez a letter and advised him of the Appointment Order and its various terms, including the exclusive right of the Receiver to exercise control over Xela’s property without interference from any other person. The Receiver received information regarding Xela and its transactions directly from its subsidiaries. One of Xela’s wholly-owned subsidiaries was Gabinvest S.A. (Gabinvest). The Receiver exercised Xela’s rights under the Appointment Order as the sole shareholder of Gabinvest. The Receiver passed the Gabinvest Resolution to remove the three directors of Gabinvest and replaced them with the Receiver’s representatives. Justice McEwen issued an order approving and ratifying the Gabinvest Resolution. He held the Gabinvest Resolution was a proper exercise of Receiver’s exclusive power and authority to exercise Xela’s shareholder rights. Hals, one of the removed directors, filed a criminal complaint against the new directors (Criminal Complaint). The sole evidence tendered in support of the Criminal Complaint was a declaration sworn by Gutierrez (Declaration). Gutierrez testified he and Hals did not discuss the Declaration. Gutierrez testified he did not know the Declaration was going to be used to support a criminal complaint....
LexisNexis® Research Solutions

Related Sections