Company and Finance News:

BCSC Educates Companies about BC's Money Raising Rules
The BC Securities Commission (BCSC) is reaching out to small businesses around the province with new online materials and province-wide presentations aimed at informing small businesses about BC's capital raising rules.

"We are offering this information to small business owners because they may not yet have professional advisors who specialize in this area," said Peter Brady, the BCSC's Director of Corporate Finance. "In a nutshell, we want them to understand BC's securities rules so they stay on track and raise money in a timely and efficient way." Read the BCSC news release.

Revised PST Bulletins
The following bulletins have been updated to reflect recent changes to the regulations about liquor sold at auctions.

• Bulletin PST 001, Registering to Collect PST
• Bulletin PST 003, Small Sellers
• Bulletin PST 119, Restaurants and Liquor Sellers
• Bulletin PST 304, Thrift Stores, Service Clubs, Charitable Organizations and Societies

For more information and a list of other recent bulletins and notices, visit the BC Consumer Taxes website.

Do "Spectacular" Infill Drill Results Require Disclosure?
– Securities Act
A British Columbia Securities Commission ("BCSC") decision earlier this year should be of interest to junior mining issuers, though we suggest that the decision should be followed with extreme caution. We note that this decision relied on specific facts and circumstances and should not be taken as standing for the proposition that infill drill results are not, per se, material.

In April 2012, the executive director of BCSC alleged that Canaco Resources Inc. ("Canaco"), a TSX Venture Exchange ("TSXV") listed company, together with its President and three other directors, failed to promptly disclose assay results from eight drill holes, that these results constituted a "material change", and that the failure to make prompt disclosure violated Section 85 of the Securities Act (British Columbia). The executive director also alleged that the directors of Canaco failed to act in the company's best interest when they issued stock options to officers, directors and consultants after they became aware of the undisclosed drill results but before they were published, and in so doing they acted contrary to the public interest. Read the full article published by Vikram Dhir and Nick Ayling with Clark Wilson LLP.

Energy and Mines News:

Peeling Back the Layers of LNG Development – A Primer
on the Regulatory Framework for LNG Projects in BC
In an increasingly competitive global market for natural gas, the race to export liquefied natural gas (LNG) to Asia is on. With LNG attracting a premium price in Asia, Canada is vying with the United States, Australia, Russia, East Africa and the Middle East to rapidly build the infrastructure required to move LNG to key markets in Japan, Korea, Taiwan, China and India. By positioning the LNG industry in British Columbia (BC) as a key driver for economic and jobs growth over the next few years, the BC government is sending a clear message – the time to act is now.

LNG project proponents are discovering there are many layers of policy and regulation underlying the development of the LNG industry. This article will examine the current policy and regulatory framework for the development of LNG projects in BC, as well as consider some of the challenges facing project proponents. Read the article by Selina Lee-Andersen with McCarthy Tetrault.

BC Hydro Rates Head Skyward as Province Unveils 10-Year Plan
An electricity rate hike announced [November 26^th] by the BC Liberal government is less than contemplated by BC Hydro this fall, but households, businesses and industrial users will still pay significantly more starting in 2014.

And critics argue there may be even greater hikes coming as projects such as the proposed $7.9-billion Site C hydroelectric dam come on stream, possibly in 2024, and the BC Liberals continue to put off the full cost of capital projects in so-called deferral accounts.

Electricity rates will increase 15.6 per cent in 2014 and 2015 (9 per cent and 6 per cent, respectively), less than the 26.4 per cent outlined by BC Hydro in an internal document leaked in September. Read Vancouver Sun article.

Mining Association of BC and WorkSafeBC Release
Business Improvement Toolkit
The Mining Association of BC (MABC), in partnership with WorkSafeBC, is pleased to release a unique Business Improvement Toolkit aimed at industry-wide education, and improvements to service delivery models for managing workplace injuries and recovery in the mining industry.

While the mining industry in BC remains the safest heavy industry in the province, the Toolkit will help ensure that when injuries do happen, everyone involved can work together to see that the best care and recovery plan is in place to help workers get back on their feet. To read the full news release and to download the Toolkit click here.

Family and Children News:

Non-Removal and Relocation Orders Under the Family Law Act
I. Non-Removal Orders
Family Relations Act – Under the Family Relations Act, the Courts had general discretion to prohibit the removal of a child from an area within the province or from the province as a whole, if the Courts considered that this restriction was necessary and reasonable in the best interests of the child: Section 35 (4). We often saw these Orders being made early on in family law proceedings, in order to preserve status quo if a concern was put forward about one party leaving the jurisdiction with the child.

Orders typically were made as follows: "Neither party shall remove the child from ("geographical area/i.e. "the Okanagan Valley" or "the Province of British Columbia") without the other party's written consent or an Order permitting them to do so."

Family Law Act (the "Act") – Section 64 of the Act now gives specific authority to the Courts to make non-removal Orders. Read the full article by Lisa Holmes Wyatt with Pushor Mitchell LLP.

Foreign Same-Sex Marriage Couples Return to BC for Divorce
A Vancouver lawyer says there will likely be an "influx" of non-resident, same-sex couples who return to BC to file for divorce after laws were changed earlier this year to waive a one-year residency requirement.

"It'll only be for the first while, but you'll have an influx," said Kevin Heinrichs, a partner at family law firm Henderson Heinrichs.

Up until last June, same-sex couples had to have lived in the same jurisdiction where they were married for one year before becoming eligible to file for divorce.

"These are people who came to Canada, got married here, went back to their state or home country of residence, lived not happily ever after, took a look around their residency state and realized they can't get a divorce where they are," Heinrichs explained. Read more on The Province website.

Forest and Environment News:

Forest Industry-Led Committees Recommend Significant Changes to
Prequalification Audit System Known as "SAFE Companies"
Forest industry-led committees recommend significant changes to prequalification audit system known as "SAFE Companies" and "SAFE Certified"

• Primary purpose of changes is to help industry further reduce injuries and fatalities
• Equal focus on planning and execution of work activities
• Committees want BC Forest Safety Council safety advisors to do in-field audits to ensure consistent standards and reduced costs, especially for small companies
• Calling on rest of industry to provide input and feedback

Over the course of the next two months BC forest industry companies and contractors are encouraged to review a discussion paper containing proposed changes to the SAFE Companies Certification for Forestry system and provide feedback to industry steering and working committees. Read the full article published on the BC Forest Safety Council website.

Fisheries Act Changes Come into Force on November 25, 2013
– New fish habitat provisions, authorization process and increased penalties
Significant and much anticipated changes to the Fisheries Act regime referred to in the September 2012 and October 2012 editions of EnviroNotes! will finally take effect on November 25, 2013. These changes will shift the focus of protection from "fish habitat" to "fisheries". Although the government says the changes are designed to streamline the law and reduce the amount of regulation, the initial implementation period will likely be marked by a heightened degree of uncertainty as regulators and the regulated come to terms with the meaning of the new provisions. This will be exacerbated by the new Fisheries Protection Policy and Operational Approach, both of which have just been released. The new Applications for Authorization Regulations also take effect on November 25, 2013. This sets out the process, information requirements and timelines for Authorizations under section 35(2)(b). Read the full article by Tony Crossman with the firm Miller Thomson.

Environmental Assessment in Canada and Aboriginal Law: Some Practical
Considerations for Navigating through a Changing Landscape
This paper was prepared by Timothy P. Leadem, QC, of T. Leadem Law Corporation, Vancouver, BC, for the Continuing Legal Education Society of British Columbia, October 2013. Click here to view the paper.

Environmental Appeal Board Decisions
A number of Environmental Appeal Board decisions were released in the month of November. These included the following

• Water Act – Jason Ralph Frank v. Regional Water Manager [FINAL DECISION – APPEAL DISMISSED] Full-text
• Environmental Management Act – Shawnigan Residents Association; Cowichan Valley Regional District v. Director, Environmental Management Act [FINAL DECISION – STAY GRANTED] Full-text
• Water Act – District of Lake Country v. Assistant Regional Water Manager [FINAL DECISION – APPEALS DISMISSED IN PART] Full-text

Canada's Oil Spill Response Flawed in High-Risk Regions like Southern BC: Report
Canada's oil spill response regime is "fundamentally sound," though flaws include a lack of federal leadership and a system that isn't braced for disasters in areas like southern BC, according to a federal panel report released [recently].

The panelists are also calling on Ottawa to remove the limitation on industry-funded compensation in the event of massive spill, which is currently set at a maximum of $1.3 billion.

"Canadian taxpayers should not bear any liability for spills in Canadian waters."

The three Harper government-appointed panelists also said Canada's "rigid, national" preparedness regime fails to adequately target specific high-risk regions.

"For example, in the Strait of Juan de Fuca, Canada should be prepared for a spill of crude oil due to the volumes being moved and the environmental and socio-economic sensitivities present."

The report comes less than two months after the BC government released its own report on deficiencies in Canada's spill response system. Read the Vancouver Sun article.

Water Regulation Changes Streamline Permitting Process
The water licence application process will become easier for clients, effective December 6, 2013. Amendments to the water regulation to assist clients in obtaining permit approvals faster include:

• Changing the quick licensing procedures to allow applicants to deliver information to landowners electronically regarding water licence applications where there is ample water available. Currently, information about the application must be delivered by hard copy; and
• Eliminating the current requirement to provide duplicate signatures on water licence applications.

Starting December 6, 2013, the application for new water licences will be available online, replacing the existing paper application forms. www.frontcounterbc.gov.bc.ca The online water licence amendment application will follow a few weeks later. Read the government news release.

Health News:

Medical Marijuana Participants File Class-Action Suit
A proposed national class action lawsuit was filed in Federal Court in Vancouver on Monday seeking damages in an alleged privacy breach involving Health Canada mailing letters to 40,000 people – and identifying them as participants in the Medical Marijuana Access Program.

The action was filed by Vancouver resident Jason Wilcox on behalf of Canadians whose personal and health information was compromised.

"From what we understand, and of course this will be confirmed in the action, 40,000 people who were participants in the medical marijuana program had their private health and personal information breached by them or released by Health Canada when Health Canada sent out the letters with the medical marijuana return addresses on them," said Kate Saunders of Branch MacMaster LLP, the law firm representing Wilcox and others in the proposed suit. Read Vancouver Sun article.

Aboriginal Seniors Face More Challenges Staying
Healthy, Accessing Care: Report
First Nations, Metis and Inuit of advancing years often have poorer health than their non-aboriginal counterparts but don't receive the same level of health-care services as other Canadian seniors, a report says. The Health Council of Canada report, released [November 28], says the health of aboriginal seniors can be compromised by poverty, inadequate housing and poor diet, especially for those living in remote areas where nutritious foods may be prohibitively expensive. Chronic conditions such as obesity, diabetes and heart disease are more prevalent among aboriginal Canadians, compared with the general population, and those disorders can worsen with age. Read Vancouver Sun article.

FDA to Ban Artery-Clogging Trans Fats in Effort
to Prevent Heart Attacks, Deaths
Heart-clogging trans fats have been slowly disappearing from grocery aisles and restaurant menus in the last decade. Now, the Food and Drug Administration is finishing the job. The FDA announced [recently] it will require the food industry to gradually phase out artificial trans fats, saying they are a threat to people's health. Commissioner Margaret Hamburg said the move could prevent 20,000 heart attacks and 7,000 deaths each year in the U.S. Hamburg said that while the amount of trans fats in the country's diet has declined dramatically in the last decade, they "remain an area of significant public health concern." The trans fats have long been criticized by nutritionists, and New York City and other local governments have banned them. Read the Vancouver Sun article.

Labour and Employment News:

Strike Vote Not Valid
Exchange of views on all key issues required
The Labour Relations Board has confirmed that strike votes must be meaningful. In effect, collective bargaining must have progressed at least to the point where it is clear what is in dispute before a strike vote can meet the legal requirements of the Labour Relations Code.

There has been a growing frustration over unions quickly moving to strike votes and strike notice in the middle of collective bargaining. The Code requires collective bargaining, followed by a strike vote, followed by 72 hours' strike notice before a union is in a legal strike position. Too often, unions have been holding strike votes early in the bargaining process. But it is not helpful, and in many cases actually impedes the process, when the employer has to turn some of its attention away from bargaining to worry about facing strike action in as little as 72 hours. Read the full article by Earl Phillips with McCarthy Tetrault.

Suing an Employee for Damages
You may think that an employment contract is like any other contract: if one party breaches that contract, they are liable to compensate the other party for the breach. That is not necessarily the case with employment contracts, however. Employers may be surprised to learn that the answer to the above question is most often "no".

Take for example the case of Kirby v. Amalgamated Income Limited Partnership, 2009 BCSC 1044. In that case, the Court considered whether an employer could sue an employee and claim compensation from the employee. The court concluded that mere error, incompetence or negligence was not enough to entitle an employer to claim compensation from an employee. Read the full article by Daniel Sorensen with Waterstone Law Group LLP.

Miscellaneous News:

West Vancouver Woman Still Facing Home Forfeiture Despite
Human Trafficking Acquittal – Civil Forfeiture Act
Critics say the BC Civil Forfeiture Office is a government "cash cow" run amok
Lawyers for a British Columbia businesswoman acquitted of human trafficking have written to the BC Civil Forfeiture Office asking that it drop court action to seize the multimillion-dollar home she owns with her daughters. The fact is, however, the provincial agency can continue the civil lawsuit to claim the West Vancouver home owned by Mumtaz Ladha, with or without a conviction.

"We're still waiting to hear from them," Casey Leggett, Ladha's lawyer, said.

Phil Tawtel, director of the office, said the agency is reviewing the court decision. The judge at Ladha's criminal trial delivered an unequivocal acquittal on [November 26], and Leggett said he expects the claim will be abandoned – but it's not automatic.

"Whether proceedings are initiated in court or administratively, they are not reliant on criminal charges or convictions arising from the alleged unlawful activity," says the agency website.

It's a startling example of the problem with the province's aggressive program to seize assets linked to unlawful activity, said Micheal Vonn of the BC Civil Liberties Association.

"We have said right from the get-go, it's an end-run around the appropriate protections in the criminal justice system," Vonn said.

The claim on the $4-million home owned by Ladha and her two daughters was filed two years ago, after she was arrested and charged with human trafficking and three other violations of the federal immigration act. Read more on the Vancouver Sun website.

Privacy Laws Hamper Public-Safety Warnings,
Elizabeth Denham Says - FOIPPA
Public bodies in British Columbia, including the provincial government, don't do enough to warn people about potential health, safety and environmental dangers, said the provincial privacy commissioner.

In a report released [December 2], Elizabeth Denham recommends the BC Liberal government amend the Freedom of Information and Protection of Privacy Act to ensure people have more information about potential dangers before they occur.

Denham said information about issues such as the state of crumbling infrastructure, the location of marijuana grow operations and how long it takes for an ambulance to arrive should be available to the public.

Her report points out concerns that public bodies are not properly trained or even aware of the duty to inform residents about potential dangers that have been the subject of examination. View full article in the Globe & Mail.

Motor Vehicle and Traffic News:

BC Begins Highway Safety Review of Speed,
Wildlife Hazards, Winter Tires
The BC government is stepping on the accelerator with a review of speed limits and other safety issues for provincial highways.

A two-month public consultation process [began on November 29] to review speed limits, winter tires, slow-moving vehicles and wildlife hazards.

Transportation Minister Todd Stone says speed limits on longer stretches of rural highways are being reviewed to ensure appropriate limits are in place because research suggests that it's not speed that kills, but variations in speed. View the full article posted on the Vancouver Sun website.

Government Scoops Additional $137
Million from ICBC's Coffers
While ICBC actively seeks a rate hike from BC motorists the government continues to raid the Crown corporation's coffers.

As previously reported, the 2013 BC Government budget anticipated scooping a total of $257 million from ICBC in 2013. The BC Government's Second Quarterly Report has now been released and reveals that "The outlook for commercial Crown corporation net income is up $91 million mainly reflecting an increase in ICBC net income due to improved investment returns."

In fact by the end of September 2013 the government already scooped $137 Million more than projected from ICBC. Read the full article by Erik Magraken on his BC Injury Law Blog.

CVSE Bulletins
The CVSE has published a document outlining the restrictive load limits on BC Highways. Click here to view the document.

Property and Real Estate News:

BCLI Forms Strata Property Law Project Committee
The British Columbia Law Institute has formed a new project committee to assist it in carrying out its Strata Property Law – Phase Two Project. "This project committee brings together a diverse range of experts in the strata-property field," commented committee chair Patrick Williams, "to tackle some of the most pressing issues in strata-property law in British Columbia." The committee will begin its work by examining the dissolution and winding up of stratas. From there, it will move on to consider other fundamental changes to stratas, and then selected issues relating to mixed-use and other complex stratas, leasehold stratas, common property, governance, insurance, and land titles. To learn more about this project visit the BCLI website.

BC Court of Appeal Upholds Order to Sell Condo over Misbehaviour
Landmark decision: Panel rules misconduct infringed on others' rights – Strata Property Act
"A man's home is his castle," unless it's a condominium. Then "the right of quiet enjoyment in collective living" trumps property rights, the BC Court of Appeal says.

In a landmark decision [November 13], the province's highest court for the first time authorized the forced sale of a condo because the unit's owner and her son were so abusive their neighbours took to wearing cameras to record the conflicts.

Faced with more than 1,100 complaints going back to 2006, the strata council of the 15,200-block of Guildford Drive spent years trying to rein in Rose Jordison and son Jordy. The council finally told the court the misconduct, excessive noise, harassment and refusal to pay thousands of dollars in fines had become too much – they had to go. And the BC Supreme Court agreed. Read the Vancouver Sun article.

BCREA Comments on 2014 Budget Report
BCREA was pleased to see its top two public priority issues [Property Transfer Tax & Floodplain Maps] reflected in the report of the Select Standing Committee on Finance and Government Services, published on November 14.

Following several weeks of consultations, including hearings in 17 communities around the province, the committee has made a total of 73 recommendations for government to consider for Budget 2014 – though the Minister of Finance is under no obligation to act on those recommendations. Read the full article published by BC Real Estate Board.

Home Inspector Regulatory Model – Survey
The BC Government is asking for input on an improved regulatory model for Home Inspectors. Two online surveys are available until December 20^th: one for consumer opinions, one for home inspection professionals. British Columbia was the first province to license home inspectors, and is still one of only two provinces doing so today. To be licensed, BC home inspectors must have: met specific education requirements, received appropriate practical training, been subject to at least one peer test inspection review, and met continuing education requirements by the inspector's association.

• In June 2013 Minister Rich Coleman was given responsibility to strengthen home inspection accreditation to better protect consumers buying a home by improving the qualification and training requirements for licensed home inspectors. Feedback received through the surveys will help inform changes to the regulatory model. The public consultation survey is available at: http://fluidsurveys.com/s/HIP/.
• The home inspectors' survey is available at: http://fluidsurveys.com/s/HIS/.

Source: BC Office of Housing and Construction Standards

Wills and Estates News:

BCSC Provides Much Needed Guidance for Trust Proceedings
In Mayer v. Mayer, 2013 BCSC 1958, the BC Supreme Court ruled on the following issues:

1. the principles which govern an application by a trustee under s. 86 of the Trustee Act for leave to bring proceedings on behalf of a trust without the unanimous agreement of all of the trustees;
2. the ability of a beneficiary to bring proceedings for damages to the trust when leave is denied to the beneficiary to bring proceedings as a trustee; and
3. whether the court may direct the winding up of a trust and, if so, the circumstances when it should do so.

Because these issues had not previously been considered by Canadian courts, this case may have significant implications for both personal and commercial trusts. Trustees and beneficiaries may find this case useful for determining their respective rights and duties, and the assistance that can be obtained from courts. Read the full article by Mark Weintraub with Clark Wilson LLP.

Significant Changes to the Rights of Separated Married Spouses
under the New Wills, Estates and Succession Act
British Columbia's new Wills, Estates and Succession Act (WESA) will significantly change the succession rights of a separated married spouse when the new legislation comes into effect on March 31, 2014.

The Wills Act provided that unless a contrary intention appeared in a will, if a spouse makes a will leaving a gift to the other spouse, and after the will is made, there is a divorce, a judicial separation, or the marriage is found to be void or declared a nullity by the court, the gift to that spouse in the will is revoked. By far the most common of these occurrences is a divorce, and for convenience [this article] will only refer to divorce.

Without a divorce, if you are just separated from your spouse, even for many years, the separation does not revoke any gifts to you in his or her will. You would each have to make new wills to disinherit each other.

Under the old law, a separated married spouse may apply to vary a will under the Wills Variation Act, even if he or she had been separated from the now deceased spouse for decades.

Under the Estate Administration Act, a separated spouse was entitled to a spousal share if his or her spouse died without a will, and they had not been separated for more than one year at the time of death. All of this will change shortly. View the full article by Stan Rule on the Rule of Law website.