Cardillo v. Medcap Real Estate Holdings Inc.
John Cardillo
Law Firm / Organization
Not Specified
Lawyer(s)

F. Scott Turton

2503866 Ontario Inc.
Law Firm / Organization
Not Specified
Lawyer(s)

F. Scott Turton

1869541 Ontario Inc.
Law Firm / Organization
Not Specified
Lawyer(s)

F. Scott Turton

Bodypro Gym Inc.
Law Firm / Organization
Not Specified
Lawyer(s)

F. Scott Turton

B. Riley Farber Inc., Trustee in Bankruptcy of the Estate of Medcap Real Estate Holdings Inc.
Law Firm / Organization
Jaffe & Peritz LLP
Lawyer(s)

Brandon Jaffe

Bennington Financial Corp.
Law Firm / Organization
Papazian Heisey Myers
Heffner Investments Limited
Law Firm / Organization
Papazian Heisey Myers
Scott Wilson
Law Firm / Organization
Papazian Heisey Myers
Physiomed Health Holdings Inc.
Law Firm / Organization
Papazian Heisey Myers

Summary: This case involves the bankruptcy proceedings of Medcap Real Estate Holdings, where the principal, John Cardillo, and associated entities, attempted to appeal a decision made by Justice Kimmel. The decision denied their request to transfer bankruptcy-related motions to Hamilton, favoring consolidation in Toronto for efficient adjudication. This appeal focuses on whether the parties involved had an automatic right to appeal the decision regarding procedural directions issued in bankruptcy proceedings.

Key Points:

  • Jurisdiction and Appeal Rights: The Court of Appeal reviewed whether the Cardillo Parties had an automatic right of appeal under sections 193(a)-(d) of the Bankruptcy and Insolvency Act (BIA). The court found that the issues involved procedural directions, thus not granting an automatic right of appeal.
  • Need for Leave to Appeal: The court determined that leave to appeal was required under section 193(e) of the BIA, which the chambers judge had the authority to deny based on the procedural nature of the initial decision.
  • Consolidation Decision by Kimmel J.: The decision to consolidate the proceedings in Toronto was upheld as a just, expedient, and cost-effective measure to manage interrelated issues concerning Medcap's bankruptcy.

Outcome: The Cardillo Parties' motion to review the decision denying them automatic appeal rights was dismissed. The appeal was seen as lacking merit and potentially hindering the progress of bankruptcy proceedings. Costs of $5,500 were awarded against the Cardillo Parties. This case emphasizes the importance of procedural efficiency in bankruptcy matters and confirms the limited scope of appeal rights under specific sections of the BIA.

Court of Appeal for Ontario
M54764 (COA-23-CV-1187)
Bankruptcy & insolvency
$ 5,500
Respondent