GrowthWorks Canadian Fund Ltd. will not appeal a court ruling in a dispute with the fund’s former manager, GrowthWorks WV Management Ltd. (GWVM), the defunct labour-sponsored investment fund announced Friday.
The Ontario Superior Court of Justice on May 18 handed down a mixed decision in the legal proceedings launched by GWVM in March 2014 against the fund.
GWVM brought the suit alleging that the fund wrongfully terminated its agreement with the fund manager. The fund counter-sued, alleging that GWVM breached its obligations to the fund under the management agreement.
The court found that the “former manager had breached its contractual standard of care,” the fund said in a news release, and the fund was entitled to terminate the management agreement.
The court also dismissed the GWVM claim for damages, except for its claim to unpaid fees up to the time that the management agreement was terminated.
In addition, the court denied the fund’s counter claim on the basis that it was barred by the limitation period. However, the court did award the fund certain other damages.
The final amounts, “remain subject to final determination by the court in the absence of an agreement between the parties,” the fund said.
The court ruling remains subject to possible appeal, but after reviewing the decision, the fund said it has decided not to seek leave to appeal.
Pending a possible appeal by GWVM, the fund’s board expects to wind up the fund in the next 18 to 24 months.
In the meantime, the fund’s bankruptcy proceedings remain stayed until June 30, but the fund said it plans to seek a further extension.