Law Times

September 19, 2016

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Page 6 September 19, 2016 • Law timeS www.lawtimesnews.com George Strathy, for one, appears to have hope. "I know the attorney general and his staff at the ministry recognize this need and I express the hope that resources will be provided to address that," he said. The bench has spoken. Now two Liberal gov- ernments — federal and provincial — can show if they're listening. LT Omnibus Bill survives prorogation T he short-lived prorogation of the Ontario legislature recently won't impact already pending legislation. This is good news for those anticipat- ing changes in the Burden Reduction Act. While there are other pieces of legis- lation sparking furious political debate, such as the Election Finances Statute Law Amendment Act, which will change how and where parties can fundraise, there's a glimmer of light in the Burden Reduction Act. It touches on more than 51 other pieces of legislation and, most thankfully, finally eliminates the redun- dant Bulk Sales Act. Unfortunately for the Liberals, the BRA isn't going to distract the public from their ongoing mangling of public policy. Indeed, borrowing another bil- lion dollars — or betting the carbon levy will pay for it all — to cut the eight-per- cent provincial portion from the HST on electric bills only underlines that this government's solution for everything is to simply spend more. It's all too little too late, with 20 months to go as they scramble for a new narrative to hang their hopes for re- election on. In the meantime, the busi- ness of the legislature grinds on. Housekeeping bills are never glamor- ous, nor do they excite voters, but they are nonetheless nec- essary, especially in Ontario where obscure regulations and legislation seem to lurk around every process. The BRA was introduced back in June as an omnibus bill to ostensibly streamline decision-making processes both inside and outside gov- ernment and fix some word- ing here and there. For example, it will amend both the Ministry of North- ern Development, Mines and Forestry Act and the Ministry of Agriculture, Food and Rural Affairs Act to eliminate the need for an Order in Council to set up a program. This is apparently so minis- tries can be more responsive to industry needs, and it sounds like another version of the old "I'm from the government and I'm here to help you." Other housekeeping changes would modernize commercial arbitration rules, change some processes at Provincial Offences Courts, create the position of a Small Claims Court administrative judge to oversee those lists and keep them moving and give municipalities more options in using collection agencies to collect defaulted fines. Some changes are populist: Gas and electricity utilities would be specifically prohib- ited from disconnecting cus- tomers in winter. Perhaps the thorniest is- sue, however, is that dratted Bulk Sales Act, which has commercial lawyers such as Marlin Horst, a partner at Shibley Righton LLP, eagerly anticipating its demise. "Originally, it was passed 100 years ago or so to prevent people getting inventory and selling it off quickly and not paying their suppliers," he says. "But there are several other statutes in place such as the Personal Property Se- curities Act or Fraudulent Conveyances Act, which allows the supplier to get their inventory back by reversing the transac- tion. So it really is redundant." Back in the day, the legislation com- bated the classic "bust-out scam." Merchants would order a wagonload of supplies, sell them off in bulk or at such low prices that people lined up to cart them off and then abscond in the middle of the night, leaving the supplier unpaid. Like most time-tested scams, the bust out is still in play. Modern-day versions more often involve financial services where someone using a front or stolen ID establishes a short relationship, qualifies for high credit limits and then runs up debt before "busting out." As Horst notes, there are 11 or so oth- er pieces of legislation on the books that more pointedly and better target bust- out scams, but the legislation stands and thus demands compliance. So commer- cial lawyers must filter every file through the lens of the BSA to ensure they protect clients. "There are workarounds, but it's an- other step and it really just makes things more complicated," he says. "For every commercial transaction, whether you're acting for the buyer or a seller or even in an acquisition of a company, you always have to think, will this fall under the BSA? You can get exemptions if you have to, but it means applying to the court, which you really don't want to do every time." Dumping the Bulk Sales Act is long overdue. Coincidentally, it's also what some folks would say about the Liberal government. LT uIan Harvey has been a journalist for more than 35 years writing about a diverse range of issues including legal and political affairs. His e-mail address is ianharvey@ rogers.com. COMMENT ©2016 Thomson Reuters Canada Ltd. All rights reserved. No part of this publication may be reprinted or stored in a retrieval system without written per- mission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. Law Times disclaims any warranty as to the accuracy, com - pleteness or currency of the contents of this pub- lication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. 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Chief Justice of Canada Beverley McLachlin made national news when she addressed the issue of judicial vacancies earlier this year, putting federal Attorney General Jody Wilson-Raybould on the hot seat. While many media outlets did not cover last week's Opening of the Courts ceremony, Chief Justice of the Ontario Superior Court of Justice Heather Forster Smith also had some strong words. "We urgently need the technology that can expedite the admin- istrative and important steps in all areas of the court's work," said Smith. She didn't stop there, turning to the federal government. "Respectfully, I must continue to press the minister of justice to fill our court's current judicial vacancies, and to fill new vacancies promptly when they arise," Smith said. The full-court press is on. There may be a note of hope on the horizon — with Attorney General Yasir Naqvi continuing to promise more efforts to digitize the courts, a sentiment he echoed at the ceremony. Chief Justice Queen's Park Ian Harvey

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