Background: CIBC, as the sole secured creditor, had provided various credit facilities to Foxtrot, secured by a mortgage and other guarantees. Foxtrot had defaulted on these facilities, resulting in an outstanding debt amounting to $2,692,991.38.

Legal Issues: CIBC sought the appointment of PWC as an interim receiver to preserve and protect its security and stabilize Foxtrot’s business. Foxtrot argued that the proceedings violated the Farm Debt Mediation Act (FDMA), which protects farmers from immediate creditor actions without mediation. Additionally, Foxtrot claimed that the appointment of an interim receiver was unnecessary, as existing management and pending sales would suffice to satisfy the debts.

Held: The court found that effective communication between CIBC and Foxtrot had diminished. It noted that Foxtrot had arrangements for vineyard and winemaking management, as well as pending sales that could address the debt. Consequently, the court denied CIBC’s application for an interim receiver, citing the FDMA’s protections and Foxtrot’s active management and pending transactions.

Costs/Damages Awarded: The court did not award costs to either party, meaning that both parties bore their own legal expenses.