Cow Harbour True Lease Characterization Decision 'Released'

Whether a lease is a "true" or "finance" lease has been debated in Canadian courts for decades in many different contexts. The Alberta Court of Queen's Bench recently released one of the most important recent decisions in this debate and provided significant guidance as to how leases are to be classified in insolvency cases.

27 minute read March 29, 2012 at 12:27 PM
By
Jonathan Fleisher And Suhuyini Abudulai
Cow Harbour True Lease Characterization Decision 'Released'

Whether a lease is a “true” or “finance” lease has been debated in Canadian courts for decades in many different contexts. The consequences of the categorization of a lease can have a material impact on the recovery that a lessor may have in an insolvency of its lessee.

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