Danier Leather Inc.

• September 19, 2017

  Most of you should have received your second distribution from KSV, the Trustee in Bankruptcy of Danier’s Estate.

  This second distribution accounts for the remaining 50% of your claim, as initially calculated prior to the Personal Information Verification Form process.  Deductions on account of Employment Insurance and/or the Wage Earner Protection Program may have occurred.

  Any changes that you submitted in regards to your Personal Information Verification Form, including changes to your commission, have not been included in this distribution. Should such changes be accepted, they will be reflected in the third distribution.

• May 12, 2017

  Many of you will already have received a cheque from KSV. This cheque is the first distribution from Danier’s estate to the employees, and there will be at least one more where the balance of your claim will be paid.

  The first distribution accounts for 50% of your claim.  If you received WEPP and/or EI from Service Canada that amount has been deducted from the first distribution.  Any changes that you submitted in regards to your Personal Information Verification Form, including changes to your commission, have not been included in the first distribution. Should such changes be accepted, they will be reflected in the next distribution(s).

• April 25, 2017

  Employment Insurance (“EI”) Overpayments – Some former Danier employees who received EI benefits may have received two documents from Service Canada which give notice of an “overpayment” from EI. These documents include a letter detailing the overpayment (the “Letter”) and a “Notice of Debt”. For most employees, this “overpayment” occurred as a result of the upcoming payment from Danier’s estate for amounts owed to them for severance.

  The letter from Service Canada explains that “the amount [to be] paid by the trustee will be used, entirely or partly, to repay the EI benefits that you were overpaid”. Provided that the amount payable by the estate of Danier, as identified in the letter is greater than the amount of the overpayment, Koskie Minsky expects that your repayment to Service Canada will be handled by the trustee and you do not need to take any active steps.

  Koskie Minsky has limited ability to assist you with EI issues, and we recommend that you contact Service Canada at  1-800-206-7218 with any questions.

• April 21, 2017

  Service Canada has given clearance to the Trustee, KSV Kofman Inc., to make distributions to the former employees of Danier. The Trustee has advised that they will require a few weeks to complete the distribution.

  Please note, the cheques will be sent out via mail.  If you have moved please update your address with Koskie Minsky by email: danierrepcounsel@kmlaw.ca; by fax 416-204-2897; or by calling 1-844-819-8528.  You may also contact the Trustee, KSV Kofman Inc. by email aedwards@ksvadvisory.com; or by fax 416-932-6266 to update your contact information.

• April 12, 2017

  Service Canada has not yet given clearance to the Trustee, KSV Kofman Inc., to make distributions to the former employees of Danier. We had originally been informed that clearance from Service Canada should arrive in mid-to-late March. No explanation has been given by Service Canada for the delay.

  We understand that the Trustee is following up daily with Service Canada in order to push it to complete its review as quickly as possible so that payments can be made to employees.

• January 18, 2017

  Update on Timing of Distributions

  We have previously reported that prior to any distribution to Danier’s employees, Service Canada must do a review of the payments that have been made to employees under the Employment Insurance Act. The Trustee in Bankruptcy of Danier Leather Inc. has informed us that Service Canada’s review of the initial distributions is taking longer than expected, and we have been told that Service Canada has advised that it is unlikely to complete the review until March of 2017, with the initial distribution following promptly after that. We understand that the Trustee is in frequent contact with Service Canada to complete its review as quickly as possible so that payments can be made to employees as quickly as possible.  We will provide further updates when we know more.

• December 9, 2016

  A letter was recently mailed to all former employees of Danier, providing an update on the distribution from Danier’s Estate and related issues. To view a copy of the letter dated December 9, please click here.

• November 10, 2016

  The Ontario Superior Court issued an order approving the methodology for the valuation of employee claims against Danier on November 8, 2016. The Court also ‎approved a process for the verification of employee information.

  Former Danier Employees can expect to receive an information verification form, which will include a summary and description of your claim and instructions for updating your personal information, within approximately the next 10 days.

• October 31, 2016

  A letter was recently mailed to all former employees of Danier, providing information on the proposed methodology for valuing employee claims. To view a copy of the letter dated October 28th, please click here.

• October 25, 2016

  Settlement of Employee Claims Methodology

  After several months of negotiations, Representative Counsel to the former employees of Danier has come to a settlement with KSV Advisory (the bankruptcy trustee) on a methodology for valuing employee claims. The methodology will be brought before the Ontario Superior Court of Justice for approval, with the hearing currently set for November 8, 2016. More information will be posted as it becomes available.

• September 28, 2016

  A letter was recently mailed to all former employees of Danier, providing an update on the current status of the bankruptcy and receivership. To view a copy of the letter dated September 28, please click here.

• July 4, 2016

  KSV Kofman Inc., the Trustee in Bankruptcy for Danier Leather Inc., has confirmed that an additional extension has been obtained for employees to file their WEPP claims with Service Canada. Claims must now be filed by July 30, 2016.

• June 23, 2016

  WEPP Deadline Extension

  KSV Kofman Inc., the Trustee in Bankruptcy for Danier Leather Inc., has confirmed that a five day extension has been obtained for employees to file their WEPP claims with Service Canada. Claims must now be filed by June 30, 2016.

• June 13, 2016

  30 Day Notice From KSV Kofman Inc.

  On June 7, 2016, KSV Kofman Inc., the Trustee in Bankruptcy (“Trustee”) of Danier Leather Inc. (“Danier”), sent a document entitled “NOTICE REQUIRING PERSONS TO PROVE CLAIMS” to the known creditors of Danier (the “Notice”). The Notice explained that a dividend may be declared by Danier’s bankrupt estate within 30 days from the Notice date and if persons with claims against Danier do not file their claim within the 30 days, the Trustee is entitled to make a final dividend without regard to the claims that have not yet been filed.

  If you are a former Danier employee with an employment related claim who is covered by Koskie Minsky LLP’s representation order, and who has not opted out, then you do not need to take any action at this time in regards to the Notice.

  Koskie Minsky LLP, as Representative Counsel to the former employees of Danier, will comply with all applicable time lines in regards to the Notice. Koskie Minsky LLP is preparing claims for all former employees who we represent, and when action is required of you in this regard, we will send you notice by mail.

  If your mailing address changes, it is important that you update it with Koskie Minsky LLP. You should also ensure that the Trustee has your current mailing address.  Please email any address changes to the Trustee at aedwards@ksvadvisory.com.

  Wage Earner Protection Program Act

  In the coming weeks, the Trustee will also be sending the former employees of Danier documents in relation to making a claim under the Wage Earner Protection Program (“WEPP”). The WEPP is a government program that provides compensation to eligible former employees for unpaid wages, vacation, severance, and termination pay.

  These documents will include a calculation of the amount that the Trustee believes that you are entitled to under employment standards legislation in your province.

  The maximum amount that a former employee can currently receive under WEPP is $3,907.68. This means that if your claim is greater than this amount, for example $5,000, but you believe that it should be even higher, there is no need to dispute that at this stage. Your claim will be capped at the maximum amount in any event.

  It is also important for former employees to know that the amount of their claim under WEPP does not determine their ultimate claim in the estate of Danier. If you believe that you have a greater claim than that submitted in the WEPP process, it will be possible for additional amounts to be claimed against the estate of Danier through the bankruptcy proceeding. Former Danier employees who believe that they are entitled to additional amounts or claims, such as for common law damages or employment benefits, will have an opportunity to assert those claims. Koskie Minsky LLP, as Representative Counsel to the former employees of Danier, will be asserting claims on your behalf, unless you have opted out. You will have an opportunity to review your claim before it is finalized.

  More information about WEPP is available from Service Canada, at the following address: http://www.servicecanada.gc.ca/eng/sc/wepp//index.shtml

  If you have questions in relation to your WEPP application or any other matters, please contact Koskie Minsky LLP.

• May 19, 2016

  On May 18, 2016, by Order of Justice Conway, Koskie Minsky LLP was appointed as Representative Counsel to represent the former employees of Danier Leather Inc. (the “Danier Employees”) who were terminated on or before the bankruptcy of Danier, in respect of all issues affecting the Danier Employees in the bankruptcy and receivership. Justice Conway’s endorsement can be found here.

  Pursuant to the Order, a Notice concerning the appointment of Representative Counsel will be sent by mail to all Danier Employees. To view a copy of the Notice please click here.

• May 12, 2016

  To see the Report of the Trustee of Danier in regards to the proposed appointment of Koskie Minsky as representative counsel, click here.

  To see the Motion Record of Koskie Minsky, as proposed representative counsel to the terminated employees of Danier, click here.

Show All

• December 8, 2016 Letter from Koskie Minsky to Former Employees re update on distribution
• October 27, 2016 Letter from Koskie Minsky to Former Employees re Methodology
• September 27, 2016 Letter from Koskie Minsky to former employees of Danier
• May 17, 2016 Notice to former employees of Danier Leather Inc.
• May 17, 2016 Endorsement of Justice Conway
• May 17, 2016 Order of Justice Conway
• May 11, 2016 Motion Record (Motion for appointment of Representative Counsel to terminated employees)
• May 11, 2016 Report of the Trustee of Danier

On November 8, 2016, a motion to approve a methodology for the valuation of employee claims against Danier (“Employee Claims Methodology”) will be heard before a judge of the Ontario Superior Court. The motion will be heard in Toronto at 330 University Avenue, on the 8^th Floor. The motion is being brought by KSV Kofman Inc., the bankruptcy trustee of Danier’s estate (the “Trustee”). Representative Counsel is fully supportive of the Employee Claims Methodology and will appear in Court to argue that it should be approved. There is no need for any individual Danier Employee to attend the motion.

The Employee Claims Methodology was reached after extensive negotiations between Representative Counsel and the Trustee, with input from the employee committee and the group of creditor-representative inspectors who were appointed in the Danier bankruptcy. The Employee Claims Methodology is subject to Court approval, and Representative Counsel believes that it is appropriate and beneficial to employees, and provides a fair and reasonable resolution of all employee claims arising upon termination of employment with Danier.

The Employee Claims Methodology will provide a claim value to each of you, based upon the personal information contained in Danier’s records. You will have an opportunity to review the personal information prior to your claim being finalized.  In addition to seeking the approval of the Employee Claims Methodology, the Trustee will also be seeking approval of a Personal Information Verification procedure which Representative Counsel helped to develop. Representative Counsel will send a form to each Danier Employee which sets out the personal information on which its claim is valued, and each of you will have an opportunity, should you feel it necessary, to dispute the information in Danier’s records and provide evidence that Danier’s records are incorrect.

The Employee Claims Methodology will provide for the valuation of all employment-related claims. Upon the Information Verification Procedure being completed, and the distribution of funds pursuant to the Employee Claims Methodology, all employment-related claims against Danier will be extinguished. A summary of the Employee Claims Methodology is below.

Summary of Methodology

Each Danier Employee has a potential claim against the Danier Estate as a result of the termination of their employment (a “Termination Claim”).  Each Termination Claim falls into one of three categories:

• Employees who signed employment contracts (including offer letters) which limited their entitlement on termination of employment to that provided in the applicable employment standards legislation in their province (“ESA Employees”);
• Employees who signed employment contracts (including offer letters) which include a provision specifying the employee’s entitlement on termination of employment which was greater than that provided by the applicable employment standards act (“Greater Benefit Contract Employees”); and
• Employees whose employment contracts (including offer letters) did not include a provision specifying the employee’s entitlement on termination of employment (“Common Law Employees”).

Each of these categories is subject to a different methodology for the valuation of their Termination Claims. The methodology applicable to each category is described below.

ESA Employees

• ESA Employees with fewer than 10 years of service at Danier as of March 21, 2016 will have their claims valued on the basis of the employment standards legislation in their province of employment.
• ESA Employees with 10 years of service or more as of March 21, 2016 will have their claims valued on the basis of the employment standards legislation in their province of employment or two weeks of pay per year of service, whichever is higher.
• Employees in the regional municipality of York and the City of Toronto in Ontario, as well as employees in the city of Montreal in Quebec and employees in British Columbia may also qualify for an additional payment in respect of an alleged entitlement under the mass termination provisions in those provinces employment standards legislation.

Greater Benefit Contract Employees

• Employees in this group will have their claim valued based on the specific wording in their employment contract.

Common Law Employees

• The methodology for common law employees takes into account factors such as the employee’s age, length of service, character of employment and availability of alternate employment. In summary, it is intended to estimate the anticipated time it will take for an employee to find a comparable job at a new employer (i.e., mitigate the employee’s alleged damages). As a result, employees with fewer years of service and/or lower wage rates are likely to find a comparable job sooner and will therefore likely have a smaller claim than those employees with longer service and/or higher hourly rates.
• Common law employees who earned between the applicable minimum wage and $14.50 per hour will have their claim valued on the basis of 2.7 weeks of pay per completed year of service.
• Common law employees who earned greater than $14.50 per hour will have their claim valued on the basis of 3.3 weeks of pay per completed year of service.

Claims for Other Amounts

• Those employees who were entitled to health and welfare benefits from Danier will have an additional value attached to their claim to recognize the loss of benefits during their notice period.
• There will also be a small amount added to each employee’s claim for the loss of the employee discount.
• If there are additional losses that you have suffered as a result of your termination of employment (for example, unpaid expenses), you are required to provide details of such alleged losses on your Information Verification form or you will be barred from pursuing such amounts.