7 Nov 2023
992275 ONTARIO INC v HIS MAJESTY THE KING IN RIGHT OF CANADA et al
Case Overview:
- Issue: The case revolves around 992275 Ontario Inc.'s (the Plaintiff's) application for leave to be represented by its sole shareholder and officer, Axel Winkelmann, in legal proceedings concerning the Canada Emergency Business Account (CEBA) program.
Key Legal Points:
- CEBA Program Participation: The company applied for payroll loans under the CEBA program, receiving an initial advance of $40,000 and later applied for an additional $20,000, which was denied due to ineligibility.
- Legal Action by the Company: The company sought various forms of relief including declaratory relief, specific performance, and damages, and requested Winkelmann to represent it in these proceedings.
- Rule 120 of the Federal Courts Rules: The rule generally requires corporations to be represented by a solicitor, unless special circumstances allow representation by an officer.
Court's Analysis and Decision:
- Evaluation of Special Circumstances: The Court examined whether there were special circumstances to justify Winkelmann's representation of the company, including the company's financial ability to afford legal representation and the complexity of legal issues involved.
- Decision: The Court dismissed the motion for Winkelmann to represent the company, finding insufficient evidence of the company's inability to afford legal representation and noting the complexity of the issues raised.
Conclusion:
- The Federal Court ordered the company to appoint counsel within 30 days and the proceeding remained in abeyance until then. The motion was dismissed without costs.