Judge gives Laurentian University several more months to have plan to leave creditor protection

The judge overseeing the insolvency of Laurentian University has given northern Ontario's largest post-secondary institution a few more months to come up with a plan to emerge from creditor protection.

Laurentian announced nearly a year ago, on Feb. 1, 2021, that it had entered insolvency proceedings under the Companies' Creditors Arrangement Act. The school's been allowed to operate while sorting out its financial problems. In the process, it has cut dozens of programs and staff and faculty.

Chief Justice Geoffrey Morawetz granted Laurentian's request to extend the process, until May 31. 

But he warned it has now been a year since the university declared insolvency and he wants to see some progress in the next few months.

"The filing is almost a year old," he told the court

"It's time to get going and get towards a plan."

D.J. Miller, the lawyer representing Laurentian, said some plans will be cemented in the near future, but others are "longer term."

She also told the court that university resources are "extremely thin and stretched," which has become a "critical concern."

"A lot of external assistance has been required to move forward in a lot of respects," Miller said.

In a written decision, Morawetz also ruled on the rare Speaker's warrant issued by the Ontario Legislature, demanding Laurentian hand over certain records the university has refused to disclose to the auditor general.

He ruled that the legislature has the right to request what the Ministry of the Attorney General calls the "vast majority" of the documents covered by the warrant. 

But Morawetz agreed with Laurentian that releasing records covered by pre-existing court order could cause the Sudbury school "irreparable harm."

He said there is a "fundamental question" about the balance of power between government and the justice system that is still unanswered.

"The question as to whether the Legislative Assembly can compel the production of such information or whether this goes beyond the scope of parliamentary privilege is a serious issue that has not been addressed in any reported decision," Morawetz wrote.

The chief justice suggested that a hearing on these questions be held in February or March, not too long after the Feb. 1 deadline set by Queen's Park.

"It is a serious issue which should be determined before it becomes a moot point," the decision says.

The Ministry of the Attorney General says in a statement that following the court decision only a "small percentage" of requested documents do not have to be delivered by the Feb. 1 deadline.

"We are pleased that the court has recognized the ability of the democratically elected Legislative Assembly to obtain the documents it requires to do its work on behalf of the people of Ontario," Paul Calandra, the government house leader, said in a statement.

"We remain committed to continuing to defend the supremacy of Parliament."

Danielle Stampley, the lawyer for the Laurentian University Staff Union, said she'd like to see a "running total" of the restructuring costs, including professional fees paid in relation to the court battle with the auditor general.

The court also heard from Ontario's information and privacy commissioner, arguing that Laurentian University now be required to respond to freedom of information requests.

Lawyer Linda Chen said the stay granted a year ago was "never intended to be indefinite, given that it was unprecedented in nature."

The university's unions agreed, with Laurentian University Faculty Association's lawyer, Charlie Sinclair, suggesting it's time for more "transparency and openness."

He also said that since only four information requests have been filed and put are on hold during this stay, lifting it "won't be an overwhelming challenge" for the university. 

However, Miller suggested the low number of requests indicates there isn't a need to alter "the status quo."

Morawetz said he will consider that issue at a future hearing.