COMPANY & FINANCE |
Company and Finance News:
Registered Retirement Accounts are Fair Game: Enhanced
Tools for Securities Regulators to Fight White-Collar Crime
In November 2020, the British Columbia Securities Commission
(the "Commission") dismissed an application brought by Earle
Pasquill for an order to revoke a preservation order made under
the British Columbia Securities Act (the "Act") that
prohibited Pasquill from withdrawing or
transferring funds from his registered retirement income
funds.
In 2014, the Commission found that Pasquill and Michael
Lathigee, who jointly directed and controlled the Freedom
Investment Club group of companies ("FIC Group"), perpetrated a fraud by misleading investors
and misusing investment funds. In one of British
Columbia's largest frauds, Pasquill and Lathigee raised $21.7
million from nearly 700 Canadian investors without disclosing
important facts about FIC Group's financial circumstances. Read
the full article by Jordan Deering and Adrienne Wong with DLA Piper LLP.
New T4 Reporting Requirements for Employers
Employers completing T4 slips and summaries for 2020 should be
aware of new reporting requirements related to the completion
of these tax documents. All Canadian employers who issue T4s to
employees must report certain employment payments related to
Covid-19, regardless of whether they have applied for Covid-19
related government programs or not. This additional information
is intended to validate payments made to individuals under the
Canada Emergency Response Benefit, Canada Emergency Student
Benefit and payments made to employers under the Canada Emergency Wage Subsidy (CEWS).
Read the full article by Tara Benham with Grant
Thorton.
You Can Run but You Can't Hide (Your Assets): American
Appellate Court
Upholds Enforceability of Canadian Securities Disgorgement
Order
In May 2019, a district court of Nevada recognized a CAD$21.7
million disgorgement order issued by the British Columbia
Securities Commission (the "BCSC") against Michael Lathigee, a
Canadian national residing in Nevada. Lathigee appealed the
district court's decision and on December 10, 2020, the Supreme
Court of Nevada upheld the Nevada district court's decision,
marking the first time an American court has recognized an
order issued by a Canadian securities regulator. Read the full article by Adrienne Wong with DLA
Piper.
Honesty is the Best Policy: The Supreme Court of
Canada Seeks to
Clarify the Duty of Honest Contractual Performance
Don't mislead your contracting counterparties about matters
linked to the performance of a contract. That is the apparently
simple message from the Supreme Court of Canada in CM Callow Inc v Zollinger.
Applying the organizing principle of good faith and,
specifically, the duty of honest contractual performance
(recognized in Bhasin v Hrynew) to a case
involving a right to terminate an agreement on notice for
convenience, Callow seeks to clarify the
circumstances in which the duty of honest performance may
require a contracting party to provide information to its
counterparty about a matter involving the performance of a
right under the contract. The Court held:
- All contractual rights and obligations – even
apparently absolute ones – must be exercised in line
with the duty of honest performance, which cannot be
expressly or implicitly excluded under the contract.
- Even if a party complies with the letter of a contract, the
way it exercises a right or performs an obligation may still
breach the duty of honest performance.
- Although there is no positive obligation of disclosure, a
contracting party cannot engage in "active deception" and,
where the facts disclose dishonest conduct, may be required
to correct a false impression created by its own actions.
- A breach of the duty of honest performance may give rise to
a claim for expectation damages to put the innocent party in
the same position as if the contract had been performed.
Read the full article by Nancy Roberts, Jacqueline Code, Lindsay Rauccio and Mary Angela Rowe with Osler, Hoskin &
Harcourt LLP.
Does Your Company Incentive Plan or Stock Option
Use the Term "Actively Employed"?
On October 9, 2020, the Supreme Court of Canada ("SCC") decided
in Matthews v Ocean Nutrition Ltd.,
that a dismissed employee while still in their termination
period is entitled their employment bonus.
In 1997, David Matthews began his employment with Ocean
Nutrition Canada Limited ("Company") as a chemist and went on
to hold various senior executive roles in the organization
until his resignation in June of 2011. Matthews was eligible to
participate in the Company's Long Term Incentive Plan (LTIP).
Under the program, a "Realization Event", such as the sale of
the Company, would trigger payments to participating employees.
The relationship soured, and ultimately Matthews left the
Company. He did not allege constructive dismissal at the time
of his departure. After 13 months of Matthew's departure, the
Company was sold for $540 million triggering an LITP payment
for employees. Matthews would have been entitled to a payout of
approximately $1.1 million. Read the full article by David Turner and Joyce Pong with Edwards Kenny & Bray
LLP.
Home Office Expenses – New Simplified Deduction
Methods,
New Taxable Benefit Exception, and Employer Obligations
On November 30, 2020, Deputy Prime Minister and Minister of
Finance Chrystia Freeland released Supporting Canadians
and Fighting COVID-19: Fall Economic Statement 2020 (the
"Fall Economic Statement"). The Government's news release in
respect of the Fall Economic Statement 2020 is here. The text of the Fall Economic
Statement 2020 is here. The Fall Economic Statement
contained a commitment to allow employees working from home in
2020 due to COVID-19 to deduct up to $400 in home office
expenses without the need to obtain a Form T2200 from their
employers certifying certain conditions in section 8 of the
Income Tax Act (Canada) ("ITA") had been met.
On December 15, 2020, the Canada Revenue Agency ("CRA")
released details of the simplified home office expense
deduction. An explanation from the CRA of the changes can be
found here. For 2020, the measures allow
employees to choose one of two methods to deduct home office
expenses: a simplified method (referred to by the CRA as the
"new temporary flat rate method") and a detailed method. Read
the full article by Stefanie Morand, Fred
Purkey, Kate McNeill-Keller, Kim Brown and Kabir Jamal with
McCarthy Tetrault LLP.
BC Securities – Policies & Instruments
The following policies and instruments were recently published
on the BCSC website:
- 25-403 – CSA Consultation Paper
25-403 – Activist Short Selling
- 13-315 – CSA Staff Notice
Securities Regulatory Authority Closed Dates 2021
- 55-317 – CSA Staff Notice 55-317
Automatic Securities Disposition Plan
- BC Notice 2020/07 – Launch of
BCSC Fintech Advisory Forum
- 81-522 – BC Instrument Temporary
Exemption from Delivery of Fund Facts and ETF Facts
Documents For No-Trailing-Commission Switches
For more information visit the BC Securities website.
BCFSA News
The BC Financial Services Authority published the following in
December:
- Regulatory Statement – Plan
Termination Requirements and Checklist
- Pension Plans – 2020 Report on
Pension Plans Registered in British Columbia
- Media Release – BCFSA Released
Final Report into British Columbia's Unhealthy Strata
Property Insurance Market
- Regulatory Statement – Target
Benefit Provision for Adverse Deviation Exemption and Related
Amendments
- Advisory – Liquidity Requirement
Regulation Amendments and Related Reporting Changes
- Media Release – BC Acts on Rising
Strata Insurance Premiums, Eliminates Best Terms Pricing
Visit the BCFSA website for more information.
|
Act or Regulation
Affected |
Effective
Date |
Amendment Information |
Budget Transparency and Accountability Act |
Dec. 17/20 |
by 2020 Bill 3, c. 22, sections 1 and 2 only (in force by Royal
Assent), Finance Statutes Amendment Act, 2020 |
Eligible Port Property Description Regulation (309/2010) |
Dec. 14/20 |
by Reg 280/2020 |
Financial Administration Act |
Dec. 17/20 |
by 2020 Bill 3, c. 22, section 3 (in force by Royal Assent), Finance Statutes Amendment Act, 2020 |
Liquidity Requirement Regulation (332/90) |
Jan. 1/21 |
by Reg 279/2020 |
National Instrument 31-103 Registration Requirements,
Exemptions and Ongoing Registrant Obligations (226A/2009) |
Dec. 31/20 |
by Reg 288/2019 |
Port Land Valuation Regulation (304/2010) |
Dec. 14/20 |
by Reg 276/2020 |
ENERGY & MINES |
Energy and Mines News:
Canadian Government Releases
Draft Clean Fuel Regulations
The development of a Canada-wide clean fuel standard took a
major step forward on December 19, 2020, with the federal
government's release of draft Clean Fuel Regulations which,
once finalized, will come into force in December 2022.
The Clean Fuel Regulations will apply to producers or
importers of gasoline, diesel, kerosene and light and heavy
fuel oils (referred to as "primary suppliers"). Each fuel type
is assigned a lifecycle carbon intensity value, expressed in
grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ),
which is meant to represent the emission intensity of such fuel
throughout its entire lifecycle. The carbon intensity values
serve as a baseline, against which primary suppliers will be
required to make annual reductions. Beginning in 2022, each
primary supplier must reduce the carbon intensity of the fuels
it produces or imports by a minimum amount that increases each
year, starting at 2.4 gCO2e/MJ in 2022 and
culminating in a 12 gCO2e/MJ reduction requirement
in 2030. Read the full article by Thomas McInerney, Shawn
Munro, Sarah Gilbert, Sharon Singh, Dylan Gibbs and Kenryo
Mizutani of Bennett Jones LLP.
FortisBC fee Increase in January
On December 8, the BCUC approved the application by FortisBC to
move ahead on rate increase of 6.59% effective January 1, 2021.
According to the BCUC press release, in an effort to reduce the
impact on rate payers, the 2020 rates have been largely
mitigated by drawing down accumulated credits from previous
years. Since these accumulated credits will be fully depleted
by the end of 2021, the BCUC strongly encourages FEI to focus
on mitigating cost pressures to moderate rates for customers,
particularly in light of the potential impacts from the
COVID-19 pandemic. Read the full press release.
Disputes Involving Regulated Utilities
The oil and gas industry can be divided into two main
segments: upstream and downstream. Most of the writing about
energy arbitration relates to the upstream, as that is where
the exploration and development takes place. This sector is
dominated by governments that control the rights to the assets
in the ground, and the multinational oil companies that extract
the oil and move it to market. This is the world of
investor-state arbitration.
The attention the segment receives is not surprising.
Investor-state arbitrations are the product of the rapid growth
of treaties designed to protect the interests of investors
– multilateral treaties such as the Energy Charter Treaty
and approved by the North American Free Trade Agreement (NAFTA)
– but also a wide array of bilateral treaties between
specific countries.
However, for every one of the investor-state cases, there are
10 significant commercial arbitrations in the downstream energy
sector. Here, the centre of gravity is not London, Stockholm or
Paris, but Houston or Calgary. More than 90 energy companies
have head offices in Calgary – and Houston has three
times that number. Read the full article by Gordon Kaiser with Energy Arbitration Chambers.
Recent BCOGC Bulletins
The BCOGC has recently issued the following bulletin:
- IB 2020-09 – AMS Payment to be
Renamed as ePayment
- IB 2020-10 – Disposal Well Near
Hudson's Hope Decommissioned
- IB 2020-11 – Results of the
Commission's 2020 Aerial Leak Detection Survey
- INDB 2020-26 – Changes to
Submission Process for As-Drilled Survey Plans
- INDB 2020-27 – Revisions to the
Dormancy and Shutdown Regulation
- INDB 2021-01 – Online Submissions
for Corporate Financial and Reserves Information Launched
Visit the BCOGC website to view this and other
bulletins.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Direction to the British Coumbia Utilities Commission
Respecting Industrial Electrification |
NEW
Dec. 21/20
|
see Reg 295/2020 |
Dormancy and Shutdown Regulation (112/2019) |
Dec. 18/20 |
by Reg 288/2020 |
Pipeline Regulation (281/2010) |
Dec. 18/20 |
by Reg 289/2020 |
FAMILY
& CHILDREN |
Family and Children News:
Spotlight on Child Protection:
Party Status for Children
BCLI is running a public consultation (closing date: 15 January
2021) on child protection. It is asking for public input into
its proposed changes to the Child, Family and Community Service Act.
For information on how to participate in the consultation
please visit the Modernizing the Child, Family and
Community Service Act Project webpage. This post
is part of a series that spotlights issues discussed in the Consultation Paper on Modernizing the
Child, Family and Community Service Act. Read the
full article by Kevin Zakreski on the
BCLI website.
What to Do About Duplicate Divorce Filings?
It sometimes happens … estranged spouses, who
are not in communication with one another, each go to a family
law lawyer and each lawyer prepares and files court documents
to obtain a divorce. So what happens if your lawyer files
first, and the next day, a second Notice of Family Claim is
filed, seeking a divorce. Or what about if both spouses file
for divorce on the same day … it's been done before, and
that's why the Divorce Act tells us what to do
…
Section 3(2) states:
"Where divorce proceedings between the same spouses are
pending in two courts that would otherwise have jurisdiction
under subsection (1) and were commenced on different days and
the proceeding that was commenced first is not discontinued
within thirty days after it was commenced, the court in which
a divorce proceeding was commenced first has exclusive
jurisdiction to hear and determine any divorce proceeding
then pending between the spouses and the second divorce
proceeding shall be deemed to be discontinued."
Read the full article by Georgialee Lang, published on Lawdiva's
Blog.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Provincial Court (Family) Rules (417/98) |
Dec. 7/20 |
by Reg 236/2020 |
FOREST
& ENVIRONMENT |
Forest and Environment News:
Impending Changes to British Columbia's Contaminated
Sites Regime:
New Obligations to Take Effect February 1, 2021
The Environmental Management Amendment Act,
2019 ("EMAA"), which became law in May of 2019,
seeks to address a number of purported weaknesses in the
current contaminated site regime and streamline the
contaminated site identification process by simplifying the
trigger conditions and the submission procedures. Both the Environmental Management Act
("EMA") and Contaminated Sites Regulation ("CSR")
have been modified by the EMAA and a complimentary Order in Council made by the provincial
cabinet. These changes take effect on February 1, 2021. [For
your convenience, Quickscribe has published an early
consolidation of the EMA and the CSR as they will read on February 1st].
Since 1997, a "site profile" process has been used to identify
potentially contaminated sites in BC. Where required by the EMA
or CSR, a person must fill out a site profile form that
contains a basic description of the site together with present
and historical uses. Several identified gaps have resulted in
the Ministry of the Environment and Climate Change Strategy
replacing the site profile with a new screening process. Read
the full article by Lana Finney, Ryan McNamara and Eric Yao (Articling
Student) with DLA Piper.
The Role of Precedent at the Forest Appeals Commission
Deference to judicial precedent is foundational to the Canadian
justice system. It promotes certainty and security of legal
rights; a critically important objective of our legal system.
The rule (otherwise known to law students as "stare decisis")
is that once a court determines a principle of law is
applicable to particular facts, equivalent or lower levels of
court are bound to apply that principle in future cases that
arise on substantially the same facts. For this reason,
litigators will often go on at length as to whether the
circumstances before a court are "distinguishable on the facts"
from previous decisions of the court.
Given the importance of precedent in our judicial system, the
fact that the Forest Appeals Commission is not bound to follow
its own previous decisions may come as a surprise to some. The
Practice and Procedure Manual of the Commission states
that while "the Commission is bound by the decisions of certain
courts, it is not required to follow … its past
decisions." The surprise is potentially magnified given that
the Commission does appear to routinely follow its own
"precedents." For example, as discussed in this space
previously, over a period of two decades the Commission
consistently and repeatedly followed its previous decisions
holding that the "Kienapple Rule" (developed to prevent
multiple convictions for the same wrongful conduct in criminal
proceedings) does not apply to administrative proceedings under
BC's forestry legislation.
Then, one day in its 2018 decision in Forest Practices
Board v. Government of British Columbia, the Commission
held that the Kienapple Rule should apply to prevent multiple
administrative findings of contravention under the Wildfire Act. Read the full article by Jeff Waatainen in the Winter 2021 issue
of the BC Forest Professional Magazine.
All of the Above: Canada Reveals $15 Billion
Plan to Accelerate Decarbonization
On Dec. 11, 2020, the federal government unveiled its latest
comprehensive plan to address climate change (the "Climate
Plan"). Entitled "A Healthy Environment and a Healthy Economy",
Canada's federal Climate Plan comprises 64 policies, programs,
and investments intended to support post-pandemic economic
recovery while accelerating Canada's climate goals. The Climate
Plan aims to exceed Canada's 2030 emissions reduction target
and achieve a net-zero emissions economy by 2050.
Containing $15 Billion in investments, the Climate Plan offers
significant opportunities for a variety of industries. When
considered together with the Canadian Infrastructure Bank's
(the "CIB") recently-released Growth Plan, the Climate Plan is
especially good news for Canada's clean energy sector.
Although some of the Climate Plan's features will be put into
action right away, others will require stakeholder
consultation. As a consequence, industry and community
stakeholders need to stay carefully tuned-in and be ready to
engage as plans and policy choices evolve. Read the full article by Thomas Timmins, Chris
Hummel and Shamus Slaunwhite with Gowling WLG.
Biodiversity at Risk in Prince George
Natural Resource District
An investigation of a complaint about the management of
biodiversity in the Prince George Timber Supply Area (PG TSA)
has found that biodiversity, as it relates to old growth
forest, may be at risk in the TSA. While forest licensees are
complying with legal requirements for biodiversity protection
in the PG TSA, the investigation identified several concerns
with how government and licensees are managing old forest. Read
the full report published by BC Forest
Practices Board.
Environmental Appeal Board Decisions
There was one Environmental Appeal Board decision in the month
of September:
Mines Act
Wildlife Act
Visit the Environmental Appeal Board website
for more information.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Climate Change Accountability Act |
Dec. 31/20 |
by 2019 Bill 38, c. 43, sections 8 and 10 only (in force by
Royal Assent), Climate Change Accountability Amendment Act,
2019 |
Greenhouse Gas Emission Reporting Regulation (249/2015) |
Dec. 21/20 |
by Reg 294/2020 |
HEALTH |
Health News:
Ministry of Health Not Required to Disclose
Location of COVID Cases
A decision last week by BC's Information and Privacy
Commissioner, Michael McEvoy, confirms that the positive duty
to disclose information under section 25(1)(a) of the Freedom of Information and Protection of
Privacy Act prevails over the Public Health Act. The decision,
Order F20-57, also affirms the approach to interpreting and
applying the positive duty, under section 25(1)(a) of FIPPA, to
disclose information about a risk of significant harm. Order
F20-057 also illustrates how the COVID-19 health emergency is
affecting public bodies' responsibilities under FIPPA in new
ways. Read the full article by Amy O'Connor and
Alexandra Greenberg of Young Anderson, Barristers &
Solicitors.
Broader Access to Medical Assistance in
Dying ("MAID") on the Horizon
The federal government is drawing closer to amending provisions
regarding medical assistance in dying ("MAiD") to allow access
to individuals whose deaths are not reasonably foreseeable,
with Bill C-7 completing its First Reading at
the Senate as of December 10, 2020. This blog post from September 2019 offers a
concise review of the case that prompted our legislators to
take action, and this post sets out the current
eligibility requirements.
Following a Supreme Court of Canada decision from 2015 [2015 SCC 5] that found the prohibition on
MAiD to be unconstitutional, Parliament proceeded to amend the
Criminal Code to decriminalize
it, but mandated that the person's natural death must be
"reasonably foreseeable" for them to be eligible. This means
that individuals who lived with intolerable suffering due to
grievous and irremediable medical conditions, but who were not
dying, could not access MAiD. Read the full article by Emma Ferguson and Emma
Waterman with Alexander Holburn Beaudin + Lang LLP.
Therapists Say "Now's the Time" for Professional
Regulation, Make Formal Request to Adrian Dix
After nearly 3 decades of unsuccessful lobbying, group
says the risk of serious harm is too high to wait. A group
representing 6,000 BC counsellors and therapists submitted a
formal application to Health Minister Adrian Dix, calling on
him to regulate their profession and protect vulnerable
patients.
The 38-page submission to Dix from the Federation of
Associations for Counselling Therapists in BC (FACTBC) asks him
to declare regulation to be in the public interest. The
application under the Health Professions Act comes
after nearly three decades of unsuccessful campaigning for the
creation of a college that would set standards and develop a
disciplinary protocol for counsellors and therapists. Read the
CBC article.
"Liquid Nose Jobs" Outlawed for BC Naturopaths over
Concerns about Blindness and Skin Death
Naturopaths in BC have been banned from performing liquid
rhinoplasty, a procedure marketed as a quick and relatively
painless alternative to surgery that nonetheless can cause
serious complications. The College of Naturopathic Physicians
of BC announced Tuesday [December 22] that the ban will go into
effect on Jan. 1. "The college has a legal mandate to protect
the public," registrar Howard Greenstein said in a notice to all BC naturopaths. Read
the CBC article.
Amendments to the Patented Medicines Regulations
Delayed by 6 Months, until July 1, 2021
The coming-into-force date of the Regulations Amending the
Patented Medicines Regulations ("the Amendments") has been
delayed by 6 months until July 1, 2021. What does this mean?
Assuming the final PMPRB Guidelines do not change, Appendix F
requires grandfathered and gap medicines to comply within two
reporting periods (i.e. July 1, 2022). All other medicines will
have one reporting period to comply (i.e. January 1, 2022).
What is impacted? First published in the Canada Gazette, Part
II in August 2019, the Amendments introduced three major
changes to the PMPRB's regulatory framework. Read the full article by John Norman, PhD, Alex
Gloor and Jenny Thistle with Gowling WLG International Limited.
COVID-19: Outbreaks Declared at
Several Large Hospitals in BC
The virus has been detected this week at St. Paul's,
Chilliwack, and the University Hospital of Northern BC in
Prince George. Several large hospitals in BC have declared
COVID-19 outbreaks, including one in Prince George, Chilliwack,
and in Vancouver. Northern Health said this week there is an
outbreak on the Rehabilitation Unit at the University Hospital
of Northern BC in Prince George, following a single,
lab-confirmed, patient case of COVID-19. Read the Vancouver
Sun article.
|
Act or Regulation
Affected |
Effective
Date |
Amendment Information |
Assisted Living Regulation (189/2019) |
Dec. 2/20 |
by Reg 189/2019 |
COVID-19 (Limits on Actions and Proceedings) Regulation
(204/2020) |
RETROACTIVE
to
Jan. 1/20 |
by Reg 277/2020 |
COVID-19 Related Measures Act |
Dec. 27/20 |
by Reg 301/2020 |
Information Management Regulation (74/2015) |
Dec. 1/20 |
by Reg 74/2015 (as amended by Reg 115/2016 & Reg 97/2018) |
Laboratory Services Regulation (52/2015) |
Jan. 1/21 |
by Reg 52/2015 |
LABOUR
& EMPLOYMENT |
Labour and Employment News:
COVID-19 Vaccinations and Workplaces
2020 presented unprecedented challenges for
workplaces, requiring employers to be creative and strategic in
responding to the significant changes required by the COVID-19
pandemic. The close of 2020 brought with it the approval of two
vaccines, with more on the horizon. These vaccines will
hopefully assist in putting the pandemic and all the resulting
restrictions behind us. For employers and workplaces in
particular, the vaccines mean a potential return to normal
operations, a return to full capacity and a return to the
normal workplace. But that will only happen if workers are
vaccinated, or the COVID-19 pandemic resolves itself. For
employers that raises a myriad of questions, most
significantly, can they require employees to get vaccinated and
can they require employees to provide information with respect
to whether or not they have been vaccinated? Read the full article on the Workplace Law
Strategies Blog by Rose Keith, QC, of Harper Grey LLP.
Howard Levitt: Why Employment Contracts Are
Now Being Rewritten all over the Country
The most dramatic and fundamental change to employment law in
2020 is the unenforceability of longstanding employment
contracts. Virtually no employment contracts from early 2020,
either limiting dismissal damages or stipulating that employees
will forfeit remuneration (such as bonuses, commissions,
pension vesting, etc.) that would have accrued during the
period of notice following their dismissal are enforceable any
longer. This is a result of a combination of the Matthews v. Ocean Nutrition Canada Ltd.
decision by the Supreme Court of Canada, which has had more
impact on this field than any case in the last 20 years (and in
which I acted for the successful party) and a series of
decisions by the Court of Appeal for Ontario. The Supreme
Court, among other things, made clear that if there is a clause
in a contract that detracts from employees' rights, it cannot
be buried in the contract but must be brought clearly to the
employee's attention. Read the full article by Howard Levitt in the Financial
Post.
Landmark Employment Law Ruling
Made by Canada's Supreme Court
On behalf of Overholt Law LLP posted in employment law on Friday, January 1,
2021. Employers in British Columbia and other provinces in
Canada might be interested in a recent Supreme Court ruling in
connection with the rights of dismissed employees to bonuses
under employment law. The ruling followed a case that involved
an employee who claimed benefits and bonus pay after he was
forced to resign.
The plaintiff employee was an experienced chemist employed by
a manufacturer of nutritional supplements from 1997 through
2011. As part of the company's management, the employee was a
participant in a long-term plan, making him eligible for an
incentive bonus pay-out in the event of the company going up
for sale. The former employee claimed to have resigned in 2011
due to mistreatment by managers, alleging a hostile work
environment forced him to leave. This happened more than a year
after the sale of the company to a competitor. Read the full article published by Overholt Law
LLP.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Employment and Assistance Regulation
(263/2002) |
Dec. 1/20 |
by Reg 270/2020 |
Jan. 1/21 |
by Reg 268/2020 and Reg 278/2020 |
Employment and
Assistance for Persons with Disabilities Regulation (265/2002) |
Dec. 1/20 |
by Reg 270/2020 |
Jan. 1/21 |
by Reg 268/2020 and Reg 278/2020 |
Pension Benefits Standards Regulation (71/2015) |
Dec. 18/20 |
by Reg 287/2020 |
Salary Range Regulation (152/2017) |
Dec. 1/20 |
by Reg 274/2020 |
Dec. 17/20 |
by Reg 285/2020 |
Temporary Foreign Worker Protection Act |
Dec. 15/20 |
by 2018 Bill 48, section 10 only (in force by Reg 231/2020), Temporary Foreign Worker Protection Act |
Temporary Foreign Worker Protection Regulation |
Dec. 15/20 |
by Reg 231/2020 |
Workers Compensation Act |
Jan. 1/21 |
by 2020 Bill 23, c. 20, sections 17 and 18 only (in force by
Royal Assent), Workers Compensation Amendment Act, 2020 |
LOCAL
GOVERNMENT |
Local Government News:
Federal Gas Tax Fund Annual Expenditure Report
UBCM has prepared its annual expenditure report on the federal Gas Tax Fund. This
program is distributing over $3 billion for local government
infrastructure and planning priorities during the current
10-year administrative agreement. Read the UBCM article.
Mandatory Vaccinations (Local Governments)
Several local governments have asked if they can refuse service
or access to members of the public who are not vaccinated for
COVID-19. As employers, local government administrators have
also asked whether they can require employees to be vaccinated
or implement a mandatory vaccination policy. As always, the
answer is "it's complicated" and "it depends". As a local
government employer, the answer may be even more complicated
given that governments are subject to the Canadian Charter of Rights and Freedoms.
In Canada, policies requiring vaccination as a condition of
service or employment must comply with employment and labour
law, human rights codes and the Charter. Read the Lidstone
& Company bulletin published by Andrew Carricato.
Vancouver Pushes Plastic Bag Ban, Disposable Cup
Fee to 2022
Due to COVID-19 Pressure on Businesses
Businesses in Vancouver will be able to give out plastic bags
and free disposable cups for another year. Council passed a
motion delaying previously approved changes on those items
until Jan. 1, 2022, instead of the original Jan. 1, 2021. "The
pandemic has changed things," said Coun. Lisa Dominato. "I
think there's many businesses that aren't in a state of
readiness." The new rules, which have not changed, include:
- Banning plastic shopping bags (with exceptions for shopping
bags used to transport large bulky items).
- A minimum fee of 15 cents for paper shopping bags —
going up to 25 cents after one year – with at least 40
per cent recycled content.
- A minimum fee of 25 cents on disposable cups (with
exceptions for charitable food services, hospitals and
community care facilities).
The BC government has already approved civic bylaws banning single-use plastics in several
municipalities, and has signalled provincewide
regulations for some items are coming. Read the CBC article.
Provincial Audit of Johnson Street
Bridge Project Won't Go Ahead
A provincial audit of the $105-million Johnson Street Bridge
replacement project will not be completed before the auditor
general for municipalities closes permanently in 2021. The
Office of the Auditor General for Local Government said in
February it would review the project at the city's request, but
on Friday [December 18], the office issued a statement saying
the audit had been affected by the pandemic and would not be
done before the office closes around March 2021. Mike Furey,
acting auditor general for local government, said the audit was
initially on track to be finished before the office closure,
but pandemic-related travel restrictions delayed the work. The
normal procedure for an audit involves being physically in the
office that's under investigation, he said. Some documents can
be examined if they're in electronic format, but Furey said not
all the necessary documents would have been available
electronically. Read the Times Colonist article.
BC, Cowichan Tribes Enter One-year Cannabis Agreement
The Government of British Columbia and Cowichan Tribes
have entered a time-limited agreement under section 119 of the Cannabis Control and Licensing Act
(CCLA). Under the one-year agreement, Cowichan Tribes will be
able to participate in cannabis retail and production. The CCLA
generally restricts businesses from operating in both the
cannabis production and retail sectors in order to ensure the
BC retail market is not dominated by a small number of larger
producers. Read the government news release.
Housing Supply Panel Report
The bilateral Expert Panel on Housing Supply and
Affordability has released an interim "What We Heard" report following initial
stakeholder consultations. The Panel is now accepting feedback on the report
until January 15, 2021 and will deliver a final report to
Canada and BC in the Spring of 2021.
The federal and provincial governments established the Expert
Panel following an announcement in the 2019 Federal Budget,
allocating $9 million over 2 years for consultations and
modelling. While the primary focus of the Expert Panel was to
examine housing supply, its scope also encompassed the
identification and evaluation of measures that could be taken
to deter unwanted demand including reducing speculative market
behaviour and money laundering. The interim report is
structured around three areas focused on all orders of
government: governance; diversity of housing; and accelerating
supply. Read the full UBCM article.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Depreciation of Industrial and Electrical Power Generating
Power Generating Facility Improvements Regulation (53/2016) |
Dec. 21/20 |
by Reg 291/2020 |
Electrical Power Corporations Valuation Regulation (217/86) |
Dec. 21/20 |
by Reg 298/2020 |
Home Owner Grant Act |
Jan. 1/21 |
by 2020 Bill 3, c. 22, section 4 only (in force by Reg 302/2020), Finance Statutes Amendment Act, 2020 |
Liquor Control and Licensing Regulation (241/2016) |
Dec. 17/20 |
by Reg 283/2020 |
Managed Forest Land and Cut Timber Values Regulation (90/2000) |
Dec. 21/20 |
by Reg 296/2020 |
Railway and Pipeline Corporations Valuation Regulation (203/86) |
Dec. 21/20 |
by Reg 297/2020 |
Railway, Pipeline, Electric Power and Telecommunications
Corporation Rights of Way Valuation Regulation (218/86) |
Dec. 21/20 |
by Reg 299/2020 |
Telecommunications Corporations Valuation Regulation (226/86) |
Dec. 21/20 |
by Reg 300/2020 |
MISCELLANEOUS
|
Miscellaneous News:
BC Courts Adopt Policy of Asking for Preferred
Pronouns to Encourage Diversity, Inclusion
In what is considered a first for Canadian courts, the
Provincial Court of British Columbia is mandating a procedure
that asks lawyers to provide their preferred pronouns when
introducing themselves and their clients in court. The new
mandate is meant to allow for a court system that is more
inclusive of those who identify as non-binary. Some lawyers
already volunteer this information, but under notice NP24, the
court will use a process that asks those before the court to
indicate whether they prefer "she/her/hers," "he/him/his" or
"they/them/their." Read the full article by Zena Olijnyk and published on Canadian
Lawyer.
Privacy and the Means for Enforcement
When governments draft new laws on controversial
topics, typically they can hope for only one type of reaction
– an acknowledgement that it's better than what came
before. Bill C-11 is at least being received with
a sigh of relief by most critics of the Personal Information Protection and
Electronic Documents Act. The new legislation
proposes to replace what Teresa Scassa of the University of
Ottawa calls PIPEDA's "soft-touch oversight and enforcement
model" with one that has actual teeth.
"I do think it's an improvement, but PIPEDA set a really low
bar," said Scassa, the Canada Research Chair in information law
and policy. "The government certainly hit some of the right
notes and beefing up enforcement was something that absolutely
had to be done."
C-11 gives the Office of the Privacy Commissioner of Canada
(OPC) something it's been asking for years: the power to issue
orders to enforce compliance with the law. The power to issue
penalties, meanwhile, is to be vested in a new Personal
Information and Data Protection Tribunal – which can
impose fines ranging up to 5% of an organization's global
revenue or $25 million, whichever is greater, for serious
breaches of the law. Less serious violations could see fines of
3% of global revenue, or $10 million. Read the full article by the CBA National.
BC's Highest Court Rejects Media's Constitutional
Challenge
Seeking Access to Court Files on Ex-cop
The B.C. Court of Appeal has upheld its own policy on access to
court records in the face of a constitutional challenge filed
by two media organizations. In reasons for judgment handed down
Wednesday [December 9], Chief Justice Robert Bauman dismissed
the challenge filed by CBC and Postmedia in connection with a
bid for access to files concerning the investigation into
disgraced former Vancouver detective James Fisher. Writing on
behalf of a unanimous three-judge panel, Bauman said the media
organizations "significantly overreach" in their arguments,
suggesting the court's access policy violates the open court
principle enshrined in the Canadian constitution. Read the CBC
news article.
Non-Settling Parties Remain on the Hook:
Clarification of BC Ferry Agreements
Recently, in The Owners of Strata Plan KAS3204 v.
Navigator Development Corporation, 2020 BCSC 1954 [Navigator], the
B.C. Supreme Court clarified the effect of a BC Ferry
Agreement, on the joint and several liability of remaining
non-settling parties. A BC Ferry Agreement is where, in a
multi-party proceeding, the plaintiff and one or more
defendants agree to settle and the plaintiff agrees not to
recover from the non-settling defendant(s) any portion of the
loss ultimately attributable to the settling defendant(s). The
Court in Navigator confirmed that when a BC Ferry
Agreement is made, the liability of the remaining defendants
remains joint and several as between each other.
The BC Negligence Act provides that a
plaintiff has a right to recover the whole of its loss from any
one, or combination of, multiple wrongdoers on the basis of
joint and several liability. It also provides that the
wrongdoers have the right to claim for contribution and
indemnity against each other "in the degree to which they are
respectively found at fault" (s. 4(2)(b)). Read thee full article by Raman Johal and Brooke
Fortugno with Clark Wilson LLP.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Committees of the Executive Council Regulation (156/2017) |
Dec. 2/20 |
by Reg 275/2020 |
Police Tax Regulation (164/2007) |
Dec. 17/20 |
by Reg 284/2020 |
MOTOR
VEHICLE & TRAFFIC |
Motor Vehicle and Traffic
News:
Case Summary: Vehicle Owner Vicariously Liable for
Accident Caused by Unknown Driver
Megaro v. Vanstone, [2020] B.C.J. No. 1561, 2020 BCCA 273, British Columbia Court of
Appeal, October 7, 2020, M.E. Saunders, G.J. Fitch and J.C.
Grauer JJ.A.
The insurer appealed the trial judge's finding that the
defendant vehicle owner was vicariously liable for personal
injuries under s. 86(1) of the Motor Vehicle Act,
R.S.B.C. 1996, c. 318. Section 86(1) imposes vicarious
liability where a driver acquired possession of a motor vehicle
with the express or implied consent of the vehicle's owner. In
this case, the owner drove with three friends to a nightclub.
The owner later gave the keys to one of his three friends and
left the nightclub with his girlfriend in a taxi. Later that
night, the vehicle was involved in an accident wherein the
plaintiff was badly injured. The driver of the vehicle in the
accident was never identified but was found at fault. At trial,
the girlfriend testified that the owner had received a phone
call shortly after arriving home from the nightclub. The owner
then told her one of his friends was the driver in the accident
but asked her to lie and say the vehicle was stolen. The owner
did not testify at trial. Read the full article by Michael Robinson with
Harper Grey LLP.
Risks and Liability – Cybersecurity and
Autonomous Vehicles
The arrival of connected and autonomous vehicles (CAVs) feels
both imminent and far away. Even as we increasingly rely on
automation in our daily lives, the idea of self-driving cars
that can navigate the chaos of the roads still sounds as
fanciful as an episode of The Jetsons or Knight
Rider to most people. But there have been significant
developments for autonomous vehicle technology –
particularly in the last few years – and more clarity on
the various degrees of "autonomy" a vehicle may achieve. After
years of theoretical discussion, the picture of what a world in
which CAVS are the dominant presence on the roads is coming
into focus. Read the full article by Brent Arnold, Josh
Hanet, Kavi Sivasothy with Gowling WLG.
Vehicle Lessor Awarded Damages for Accelerated
Depreciation By BC Civil Resolution Tribunal
By Erik Magraken – BC Injury Law Blog: I've written many
times about the law of "accelerated depreciation"
claims in BC. In short when a vehicle is damaged in a crash it
often suffers a loss of market value, even after all reasonable
repairs are done. ICBC routinely chooses to ignore this reality
when dealing with crash victims and raises invalid arguments
trying to deny such claims. The damages for such claims can be
pursued against the at fault motorist (through their liability
insurance policy).
As was demonstrated in reasons published this week by BC's
Civil Resolution Tribunal there is no reason why such claims
have to be limited to vehicle owner/operators but others with
title interest in the vehicle can pursue such a claim. In what
I believe is one of the first times this issue was addressed
the Tribunal found that a vehicle lessor can also obtain
damages for accelerated depreciation. Read the full article.
CVSE Bulletins & Notices
The following notice was posted recently by CVSE:
- CVSE 1052 Contacts – Notice to
industry that the List of Contacts for use with Form CVSE1052
has been updated (January 5 2021)
For more information on these and other items, visit the CVSE
website.
|
Act or Regulation Affected |
Effective
Date |
Amendment Information |
Special Direction IC2 to the British Columbia Utilities
Commission (307/2004) |
Dec. 14/20 |
by Reg 281/2020 |
OCCUPATIONAL HEALTH AND SAFETY |
Occupational Health & Safety
News:
Policy Changes to Implement the Workers
Compensation Amendment Act, 2020 (Bill 23)
Amendments Regarding Retirement Age Determinations
On August 14, 2020, the Workers Compensation Amendment
Act, 2020 (Bill 23) came into effect. Under Bill 23,
34 legislative amendments were made to the Workers Compensation Act. One of
these legislative amendments concerns retirement age
determinations and [came] into effect on January 1, 2021. Read
the full update on the WorkSafeBC website.
WorkSafeBC Provides Updates to BCFSC Trainers
In November 2020, BC Forest Safety Council trainers
gathered for a two-day virtual meeting for the annual Train the
Trainer session. During one of the sessions they received
WorkSafeBC updates on industry performance, discussed sections
of the Regulation and addressed emerging issues. WorkSafeBC's
Darcy Moshenko and Terry Anonson provided updates on WorkSafeBC
activities, which included details about the Forestry High Risk
Strategy, injury rate summaries, Safe Phase Integration, new
resources and changes to the Workers Compensation Act (WCA)
and Occupational Health and Safety Regulations
(OHSR). Read the full article in the December 2020 edition
of the BC Forest Safety Newsletter.
OHS Policies/Guidelines – Updates
WorkSafeBC recently issued the following OHS updates:
Policies
- January 4, 2021: Updates to the Table
of Exposure Limits for Excluded Substances
- January 1, 2021: CPI adjustments for
penalties, citations, and claims cost levies
OHS Guidelines
- January 1, 2021: A guideline was
revised to reflect CPI adjustments for OHS citations
- December 18, 2020: A guidelines was
revised to clarify when two vessels can be considered a
single dive site
Check the WorkSafe BC Updates page to explore these
and other important OHS updates.
|
Act or Regulation
Affected |
Effective
Date |
Amendment Information
|
Workers Compensation Act |
Jan. 1/21 |
by 2020 Bill 23, c. 20, sections 17 and 18 only (in force by
Royal Assent), Workers Compensation Amendment Act, 2020 |
PROPERTY
& REAL ESTATE |
Property and Real Estate News:
The British Columbia Court of Appeal Finds Strata
Council's Allocation of
Strata Fees Based on Unit Entitlement Significantly Unfair
In King Day Holdings Ltd. v. The Owners,
Strata Plan LMS3851, the general rule that strata
owners are "all in it together" gave way to fairness
considerations and King Day Holdings Ltd. ("King Day") reigned
supreme in its claim that the strata council's allocation of
strata fees based on unit entitlement was significantly unfair.
Strata Plan LMS3851 consists of 228 strata lots in the
building known as the Westin Grand (the "Building"). The
Building contains a hotel, commercial properties and an
underground parkade. Twelve of the strata lots are parkade
lots, nine are commercial lots and 207 are hotel lots. Read the
full article by Amy M. Nathanson and Flora Wu with Lawson Lundell LLP.
Underinsurance Leads to Whopping Bill
after Fire at Condo Building
Condo expert says finding out who is responsible could
"get messy" After a fire 16 months ago, Derek Wubs still has no
home and no answers. What he does have is a $37,000 bill he's
struggling to pay for his burned-out Chilliwack condo, and a
warning for others.
"I was under the belief that paying my strata fees would
result in the appropriate building insurance being purchased,"
Wubs, 26, said. "People who are looking to buy in a strata, I
would suggest to them be very careful because there's no such
thing as a good strata story." Read the CBC article.
Injunctive Relief From Lease Termination in the
COVID Pandemic? Only If You Pay Rent.
Dear Tony: Our strata corporation normally
has its Annual Meeting 60 days after our fiscal year end at the
end of February. This gives us time to review our financials in
advance of the next year and provide an accurate report to the
owners with our notice. Whenever we have an increase in fees,
we have included an adjustment over the next 10 months to pay
for the increases that would have occurred in January and
February. This reduces the impact on owners and with the
dramatic insurance cost increases this year it has been the
best financial option for everyone. Our manager has instructed
us that we must make the entire adjustment in March and cannot
make this over the next 10 months, and we have a new owner who
is refusing to pay the adjustment claiming they did not own the
unit in January and February so why should they pay? How is a
strata corporation expected to balance a budget if we cannot
address the adjustments and where in the Act does it require us
to collect the fees in the next month. Read the full article by
Tony Gioventu, published in the CHOA Condo Smarts bulletin.
Modest Increase in Most BC Properties, with
Shift to Larger Homes: BC Assessment
Property owners across BC can expect a modest increase to their
homes' assessed value this month, bucking concerns of a
COVID-related collapse, with the lion's share of the growth
being felt in already high-priced single family homes. While
low interest rates have likely kept money cheap and prices
high, the pandemic may be partly to blame for the shift to
larger properties, with buyers looking for bigger spaces to
accommodate all the things many people are doing in their
properties thanks to recommendations by public health officials
to stay home. Read the CTV news article.
Clearing Liens and CPLs from Title: It Just Got
Clearer
The BC Courts have recently clarified the mechanism under the Builders Lien Act for clearing
liens and associated certificates of pending litigation
("CPLs") from title to construction project lands.
In construction disputes clearing builders' liens and CPLs
registered on title to the project lands often needs to be done
quickly, efficiently and with certainty. Lenders to
construction projects will often withhold construction
financing until liens and CPLs are cleared from title to the
project lands. Similarly, purchasers of residential units in
projects will not close sales until liens and CPLs are cleared
from title.
One of the most important mechanisms to do so for owners and
contractors on construction projects is section 24 of the Builders
Lien Act. By paying into Court security for the lien
claimed title can be cleared for the project lands so that
construction financing is advanced and sales closed. Read the full article by Scott Lamb and Rosalie
Clark with Clark Wilson LLP.
|
Act or Regulation
Affected |
Effective
Date |
Amendment Information |
Land Owner Transparency Regulation (250/2020) |
Dec. 17/20 |
by Reg 282/2020 |
WILLS & ESTATES |
Wills and Estates News:
Suspension of Limitation Periods in British Columbia
Ends March 25, 2021
The British Columbia Government suspended limitation periods
effective March 25, 2020. A limitation period sets the time
limit in which someone may file a lawsuit. Because of Covid-19,
the BC Government suspended the limitation periods. So for
example, if a two-year limitation period would have expired on
say May 19, 2020, the limitation period did not expire, but has
been extended until after the suspension is lifted.
Now, it will begin to run again after March 25, 2021. I am
pleased to see that the suspension is ending. I never
understood the rationale. Although Covid-19 has had a
significant impact on the court system, causing delays in
hearings, it did not significantly affect the ability to file
claims in court. Limitation periods set the time limits for
filing claims, rather than for having them heard in court. The
suspension of limitation periods have in some cases caused
delays in distributing estates, mainly because someone wishing
to make a wills variation claim has 180 days from the date of
probate to do so. The Wills, Estates and Succession Act provides
for a 210-day waiting period, because someone making a claim
has another 30 days to serve the personal representative with
the Notice of Civil Claim. Read the full article by Stan Rule with Sabey Rule LLP.
Solicitor/Executor's Remuneration Claim Excessive,
Despite Charging Clause in Will
Will-makers often choose lawyers or accountants to be their
executor. Disputes over executor's remuneration can arise even
in situations where the deceased's Will contains a "charging
clause" which permits the executor to charge professional fees
for estate-related work. Charging clauses can provide clarity
and may reduce the likelihood of a dispute, but by no means do
they provide a blank cheque. In Le Gallais Estate (Re),
2018 BCSC 388 estate beneficiaries
successfully challenged an executor's remuneration and legal
fees despite an explicit charging clause in the deceased's
Will.
Ms. Le Gallais was an only child who never married or had
children. Her long-time friend and solicitor, Constance
Isherwood, prepared Ms. Le Gallais' Will, which left the
residue of her estate to six charities in equal shares. The
Will appointed Mrs. Isherwood as executor and allowed Mrs.
Isherwood to charge the estate for legal services in addition
to receiving executor's remuneration. Read the full article by Janis Ko with the ONYX
law group.
Finders and Keepers and the Hidden Half-Million
Dollars
In 1972, Bill and Mary Moroz purchased a humble single-story
bungalow, in Edmonton, on the banks of the North Saskatchewan
River. They were the first and only occupants of the home and
lived there the rest of their lives. William died in 2009 and
in September of 2016, so did Mary.
Their nephew, William Smolak, was appointed personal
representative of the Estate of Mary Moroz and set about
preparing the house for sale. The house needed much work to
clean and empty, but it was finally sold to Roger and Simone
Gagne, and Christopher Short, who took possession on October
16, 2017. Two days later, the new homeowners found $100,000 in
a tin in a basement shoe cubby roughly 18" high. Read the full article by Ian Hull and Daniel Enright with Hull
Estate Mediation Inc.
|
Act or Regulation
Affected |
Effective
Date |
Amendment Information |
There
were no amendments this month. |
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