Newfoundland and Labrador v. AbitibiBowater Inc., 2012 SCC 67 (CanLII)

This case was heard in the Supreme Court of Canada.

After a period of industrial operations, AbitibiBowater Inc. ("Abitibi") filed for insolvency protection and also secured a stay of proceedings under the federal Companies’ Creditors Arrangement Act. The Province of Newfoundland and Labrador then issued five orders under its provincial Environmental Protection Act requiring Abitibi to carry out remediation work on sites that it had occupied while it was still operative. Although the Companies’ Creditors Arrangement Act (CCAA) bars the enforcement of monetary claims against parties who have secured a stay of proceedings, Newfoundland and Labrador filed a motion asking the CCAA Court to declare that the Province’s environmental protection orders were not barred under the Act.

After the CCAA Court dismissed the Province’s motion, the Province sought leave to appeal to the Newfoundland and Labradorl Court of Appeal. Leave to appeal was denied, and so the Province sought leave to appeal to the Supreme Court of Canada. The Supreme Court of Canada granted leave to appeal.

After consideration, the Supreme Court of Canada affirmed the decision of the CCAA Court and dismissed the Province’s appeal.

View the Decision on CanLII: https://www.canlii.org/en/ca/scc/doc/2012/2012scc67/2012scc67.html

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