Thorneloe fights for right to claim $9.8M from Laurentian University

Thorneloe University is heading to court Nov. 18 to appeal a decision denying its $9.8 million claim against Laurentian University.

Thorneloe is one of the federated universities that lost its link to Laurentian through the Companies’ Creditor Arrangement Act (CCAA) process.

LU renounced its agreement with Thorneloe, Huntington and the University of Sudbury, and damage claims were addressed by the claims officer appointed by the accounting firm monitoring the insolvency process.

While Thorneloe claimed $9.8 million in losses, it was only granted $1,481,673 to pay severance claims to former staff. Thorneloe appealed, but the claim was denied again in September.

An appeal of that decision will be heard Nov. 18, but Thorneloe also asked the Superior Court of Justice to instead have the case dealt with by a mediator.

While lawyers argued that mediation would save time and money, Justice Geoffrey B. Morawetz disagreed, considering the appeal is going to be heard Nov. 18.

“In my view, it is pure speculation to suggest that a mediated resolution will save costs,” Morawetz wrote in his decision.

“The saving of time is not significant.”

Thorneloe also waited too long, he said, and should have requested mediation right after its claim was denied in May.

“The request of Thorneloe to have a court-ordered mediation has been made very late in the day,” Morawetz wrote.

“I do not find it to be appropriate to compel the Monitor to engage in a mediation of an issue that has already been determined in its favour, albeit pending appeal.”

Read the full decision here.