Another Brilliant Supreme Court of Canada Victory

On December 4, 2008, the Supreme Court of Canada upheld a judgment rendered by the Superior Court of Quebec and subsequently affirmed by the Quebec Court of Appeal, ordering Kruger Inc. to pay Malette Syndics et Gestionnaires Inc., in its capacity as the trustee-in-bankruptcy of La Latte des Berges Inc., damages in the amount of $1,250,000 plus interest and costs. The Superior Court had characterized Kruger’s conduct as negligent and tantamount to gross fault. Specifically, Kruger had become mired in administrative niceties in attempting to fulfil what in the Court’s view was a simple obligation of means consisting of obtaining the consent of the Quebec Minister of Natural Resources to a transfer to it of a timber supply and forest management agreement (TSFMA) following its purchase of the business of La Latte des Berges. Its failure to do so resulted in the cancellation of the TSFMA and the subsequent rejection of La Latte des Berges’ proposal to its creditors.

The trustee was represented by Alain Robitaille and Simon Clément of Langlois Kronström Desjardins

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