Background: Williams Moving & Storage (B.C.) Ltd. v. Canada (Minister of National Revenue) involved an appeal concerning a proposal under the Bankruptcy and Insolvency Act that was mishandled due to a drafting error. The error only surfaced after the Canada Revenue Agency (CRA) reassessed Williams Moving & Storage (B.C.) Ltd., leading to a significant unforeseen tax liability. The company then sought to rectify the proposal or amend the court order approving it, which was initially denied in lower court.

Legal Issues: The key legal issues centered on whether the lower court erred in its discretion under s. 187(5) of the Bankruptcy and Insolvency Act by not allowing amendments to the proposal to correct a drafting error. This discretion involved the interpretation and potential rectification of the proposal that was approved by creditors but flawed due to the said error.

Held: The appeal was allowed. The Court of Appeal found that the lower court judge did not err in refusing rectification but erred by not adequately considering whether to exercise her discretion to vary the order approving the proposal. Thus, the court amended and corrected the order approving the proposal with retroactive effect to correct the drafting error.

Costs/Award: There was no specific mention of the total amount of costs or award given in favor of the successful party in the document provided. The focus was primarily on correcting the legal and administrative errors regarding the bankruptcy proposal.