Canadian cross‐border insolvency law and the triumph of “modified universalism”: A retrospective

Abstract

Abstract“This article examines the implementation of the Model Law on Cross‐Border Insolvency in Canada and the evolution of the concept of “modified universalism”. In particular, the article argues that Canadian courts have developed an expansive view of modified universalism, based upon a liberal and purposive interpretive approach, that prioritizes cooperation and coordination with foreign courts to the greatest possible extent. This expansive view of modified universalism began developing in the jurisprudence long before Canada adopted the Model Law in 2009. Although this evolution was not entirely without controversy, since 2009 the law has continued to develop along the same lines. Thus, the Canadian experience illustrates the important role played by the courts in laying the groundwork for the successful adoption and implementation of the Model Law. This can be contrasted with the more restrictive approaches taken by courts in certain other jurisdictions. At the same time, the article also highlights the conceptual indeterminacy of modified universalism, suggesting that more work is needed to fill gaps and resolve inconsistencies that may hamper the law's further development.