Hudson's Bay Employees Get a New Ally in Creditor Protection Case
Designation of Legal Advocate for Employee
In a twist of events, Ontario judge Peter Osborne has selected Ursel Phillips Fellows Hopkinson LLP as the legal representative for over 9,000 Hudson's Bay employees and 3,000 retirees in their creditor protection case.
A court document reveals that Justice Osborne chose Ursel over other contenders after a thorough evaluation. The decision effectively ends the legal skirmish that flared up during Hudson's Bay's last hearing, where multiple firms fought for the chance to represent the employees.
Hudson's Bay had considered several firms, but Ursel caught their attention due to its involvement in insolvency cases for defunct retailers like Sears Canada and Nordstrom Canada.
Koskie Minsky LP, which had expressed interest in representing the employees, took issue with the selection. It argued that the company's decision to appoint Ursel without a competitive bidding process was a "serious procedural problem." Koskie Minsky, which had been hired by 420 workers, proposed former Ontario associate chief justice, Douglas Cunningham, to make the final call.
Justice Osborne acknowledged the need for reviewing the selection process but chose to appoint retired judge Herman Wilton-Siegel to eliminate any perceived bias. Wilton-Siegel evaluated five firms, all with "significant expertise and experience in commercial and insolvency matters."
Ursel emerged as the best fit, demonstrating "deep understanding" of the problems faced by Hudson's Bay employees and strong communication skills, crucial for handling large groups in insolvency cases. Koskie Minsky had a potential conflict of interest, as it was involved in a class action against Hudson's Bay. Although past ties could be managed, the court favored a law firm without any perceived conflicts and associations with the Bay and the appointed monitor.
Insight:
- The selection of Ursel Phillips Fellows Hopkinson LLP as the representative counsel for Hudson's Bay employees was grounded on their expertise in handling insolvency cases, their competence, and their ability to communicate with large groups in similar situations[1].
- The appointment followed a controversial selection process, with Koskie Minsky LP protesting the choice. However, despite these objections, the court ultimately chose Ursel based on their qualifications and expertise[3].
- The decision was made after a thorough review by Justice Peter Osborne and an independent assessment by retired judge Herman Wilton-Siegel, ensuring a conflict-free and fair selection process[2].
The legal representative for Hudson's Bay employees, Ursel Phillips Fellows Hopkinson LLP, possesses extensive experience in dealing with insolvency cases, such as those of French retailers like Sears Canada and Nordstrom Canada, in the finance sector[1]. Despite Koskie Minsky LP's objections to the selection process, Ursel was chosen for their proficiency and understanding of the unique challenges faced by Hudson's Bay employees in the context of business insolvency[2].
