WHEREAS the Court of Queen’s Bench of Alberta ruled in favour of the Applicant on their motion to have the status of secured creditor as described in Section 304 of the Municipal Government Act in cases of insolvency of linear property to be superseded by the requirements of the Bankruptcy and Insolvency Act and indebtedness to municipal taxing authorities be listed as unsecured debt; and
WHEREAS Northern Sunrise County (NSC) is a municipal taxing authority of linear properties controlled and owned by Virginia Hills Oil Corp. and Dolomite Energy Inc.; and
WHEREAS the law firm of Reynolds Mirth Richards & Farmer (RMRF) identified valid considerations on which this ruling could be challenged; and
WHEREAS RMRF invited NSC to stand as the appellant of this decision and NSC has so agreed; and
WHEREAS NSC has borne the cost of $4,191 to date to initiate this appeal and RMRF estimates costs will run to $30,000 to completion of the process; and
WHEREAS the implications of this decision would potentially affect all Alberta municipalities that have linear assessment; and
WHEREAS as per Alberta Association of Municipal Districts and Counties (AAMDC) policy (FIN-2007-07-2: AAMDC Involvement in Member Legal Matters), an endorsed resolution is required to support member legal appeals that have been heard by a Provincial or Federal Court;
THEREFORE, BE IT RESOLVED that the Alberta Association of Municipal Districts and Counties, through financial resources, support Northern Sunrise County in the legal fees associated with this appeal in an act of solidarity as the overruling of this case is imperative for all municipalities that are owed taxes and outstanding penalties from insolvent organization.
Through RMA’s Involvement in Member Legal Matters policy, RMA provided financial support to Northern Sunrise County to appeal the court ruling referenced in this resolution. As such, this resolution is assigned the status of Accepted.