People

Services

Industries

Firm

About

Knowledge

Careers

News

Events

Contact

Connect

Privacy Policy

Disclaimer

Terms of Use

Accessibility

Payments

Legal

Calgary

Toronto

Edmonton

Ottawa

Vancouver

New York

Montréal

Keely Cameron

Litigation Lawyer at Bennett Jones Calgary

Partner

Gracie Boser

Articling Student

The Alberta Court of Appeal has clarified the nature of co-lessee liability for unpaid Crown royalties under the Mines and Minerals Act. In two companion decisions, the Court confirmed that co-lessees are jointly (not jointly and severally) liable, meaning a claim extinguished against one may impact all. The decisions also address how vesting orders and insolvency stays affect the Crown&rsquo;s ability to pursue royalty arrears.

Vesting Order Bars Claims

 However Co-Lessee Liability for Unpaid Crown Royalties May Remain

Vesting Order Bars Claims for Unpaid Crown Royalties

Chyna Brown

Commercial Litigation Lawyer at Bennett Jones Calgary 

Associate

In Royal Bank of Canada v Patterson Dental Canada Inc, the Alberta Court of Appeal clarified how PPSA priority rules apply where assets used in a corporate business are personally owned by a director. The Court confirmed that ownership and registration against the correct debtor are decisive in priority disputes, and provided guidance on the treatment of leases and the proper distribution of holdbacks in insolvency sales.

Alberta Court of Appeal Clarifies PPSA Priorities in Insolvency Sales

Luke Morrison

Energy Project Development, M&A, and Commercial Transaction Lawyer at Bennett Jones Calgary

Years after an insolvency proceeding is closed, can a solvent co-lessee/working interest participant (WIP) still be on the hook for their former partner’s share of unpaid Crown royalties? A recent Alberta Court of Appeal decision to allow an appeal in <a href="https://www.canlii.org/en/ab/abca/doc/2025/2025abca181/2025abca181.html">Spartan Delta Corp v Alberta (Energy and Minerals), 2025 ABCA 181</a> [Spartan Delta], raises concerns around whether the answer to such question can be 'yes'. The oil and gas industry is closely tracking the outcome of this appeal (anticipated to be heard in Fall 2025) on the basis that if the appeal were to be granted it would create uncertainty for upstream oil & gas joint interest owners as to the impact of insolvency proceedings on existing liabilities (and would have implications for purchasers and WIPs alike in relation to oil & gas M&A out of insolvency proceedings).

Spartan Delta Corp

Spartan Delta Appeal Raises Uncertainty for Co-Lessees After Insolvency

Kelsey J. Meyer KC

Restructuring & Insolvency Lawyer | Commercial Litigation

Sarah Aaron

Commercial Litigation Lawyer at Bennett Jones Calgary

In late May, the Supreme Court of Canada (the SCC) denied an application for leave to appeal a decision of the Court of Appeal of Alberta, which, in turn, had denied leave to appeal of the decision of the Court of King’s Bench of Alberta in Re Mantle Materials Group, Ltd, 2023 ABKB 488 (Mantle KB). The decision in Mantle KB held that the interests of secured creditors are subordinate to environmental obligations pursuant to the Environmental Protection and Enhancement Act, thus confirming that the priority of environmental obligations determined by the SCC in Orphan Well Association v Grant Thornton Ltd, 2019 SCC 5 applies beyond the oil and gas industry.

Supreme Court of Canada Dismisses Leave on Leave in Mantle Materials Group The Priority

Supreme Court of Canada Dismisses Leave-on-Leave in Mantle Materials Group: The Priority of Environmental Obligations Extends Beyond the Oil & Gas Industry

Jean Tessier

Commercial Transactions Lawyer

Alison G. FitzGerald

International Arbitration Lawyer

Andrew Bozzato

Corporate, M&A, Securities Lawyer at Bennett Jones Toronto

In mid-February, the federal government launched Canada's first <a rel="noopener noreferrer" href="https://www.canada.ca/en/department-national-defence/corporate/reports-publications/industrial-strategy/security-sovereignty-prosperity.html" target="_blank" id="Defence Insdustrial Strategy | Government of Canada">Defence Industrial Strategy</a>, aiming to transform the Canadian defence industry by prioritizing Canadian suppliers and materials, investing in Canadian innovation and commercialization, and streamlining procurement.

Impacts of the Federal Defence Industrial Strategy on the Canadian MA Landscape

Impacts of the Federal Defence Industrial Strategy on the Canadian M&A Landscape

Brian P. Reid

Construction & Energy Litigation Lawyer

Kaamil Khalfan

Aaron Tell

Lawyer at Bennett Jones Calgary 

Associate 

The Alberta Court of King's Bench has clarified that the two-year trial deadline under the Prompt Payment and Construction Lien Act does not apply once a construction lien and certificate of lis pendens have been discharged from title through the posting of security. In 1951789 Alberta Ltd v Britannia Block General Partnership Inc., the Court confirmed that section 46(2) applies only where a lien and CLP remain registered against the land. The decision provides important guidance for parties involved in construction lien disputes and highlights the distinction between statutory lien remedies and delay-based applications under the Alberta Rules of Court.

Security Measures The Alberta Court of Kings Bench Clarifies

Security Measures: The Alberta Court of King's Bench Clarifies the Law of Lien Security

J. Sébastien A. Gittens

Technology Lawyer & Trademark Agent

Partner, Trademark Agent

Ruth E. Promislow

Privacy, Cybersecurity & AI Lawyer

Caroline Poirier

IT, Privacy & Data Protection Lawyer

On June 15, 2026, the federal government introduced Bill C-36 to modernize Canada&rsquo;s federal private sector privacy laws and continue the implementation of Canada's National Artificial Intelligence Strategy: AI for All.

Bill C 36 and Canadian Privacy Reform

Five Things Businesses Should Know Now

Bill C-36 and Canadian Privacy Reform

Matthew J. Hunt

Corporate Lawyer at Bennett Jones Toronto

Elizabeth K. Dylke

Corporate and Private Funds Lawyer

John Lawless

Corporate & Securities Lawyer | Private Equity

Globally, private equity markets have moderated in the first half of 2026 as new and ongoing geopolitical developments are shifting the calculus on dealmaking. However, selectivity, discipline and creativity continue to generate deals, with North America attracting the lion's share of private market activity. At the year's midpoint, there is good reason to believe that the back half of 2026 will see a rallying of activity, especially in select sectors like IT, infrastructure and energy.&nbsp; 
<div>&nbsp;</div>

Post Redwater

From the Same Authors

Vesting Order Bars Claims for Unpaid Crown Royalties

Alberta Court of Appeal Clarifies PPSA Priorities in Insolvency Sales

Spartan Delta Appeal Raises Uncertainty for Co-Lessees After Insolvency

Latest Insights

Vesting Order Bars Claims for Unpaid Crown Royalties

Impacts of the Federal Defence Industrial Strategy on the Canadian M&A Landscape

Security Measures: The Alberta Court of King's Bench Clarifies the Law of Lien Security

Bill C-36 and Canadian Privacy Reform

Stay Informed. Stay Ahead.