Aaron L. Kreaden

The Supreme Court of Canada dismissed the auditors’ appeal and confirmed that an expert witness must be able and willing to provide fair, objective, and non-partisan assistance to the court as a threshold admissibility requirement, with remaining concerns about independence generally addressed at the gatekeeping weighing stage.

Following a prior motion decision, the parties were unable to agree on costs and sought a determination from the court.

The defendants sought substantial indemnity costs, arguing the motion was vexatious and unnecessary, while the plaintiff sought partial indemnity costs and argued the motion was required to secure payment of outstanding costs awards and attendance for an examination in aid of execution.

The court held that success on a motion must be assessed by comparing the circumstances before and after the motion and whether the motion induced compliance.

The court found the motion was necessary to obtain payment of outstanding costs awards and to secure attendance for examination.

Partial indemnity costs were awarded to the plaintiff, reduced to reflect lack of success on one issue.

Following an appeal from an arbitral award concerning mining concessions and a contractual right of first offer, the court addressed costs of the appeal.

The earlier decision allowed the appeal in part, confirming that the right of first offer was triggered but overturning the arbitrator’s findings regarding partnership, fiduciary duties, and the remedy ordered.

Both parties claimed substantial success and sought partial indemnity costs.

The court held that success on the appeal was divided, as each side prevailed on significant issues.

In the circumstances, the appropriate disposition was for each party to bear its own costs.

A bank mistakenly wired duplicate funds to a recipient’s account and sought summary judgment to recover the second payment.

The respondent argued he merely acted as a trustee for another party and had already disbursed the funds without knowledge of the bank’s error, relying on the defence of change of position in unjust enrichment.

The court held that recovery of mistaken payments is permitted where the recipient is enriched without juristic reason and rejected the change of position defence because the respondent knew or ought to have known of the error.

The evidence showed rapid withdrawals, refusal to authorize repayment, and inability to explain expenditures.

The court concluded there was no genuine issue requiring a trial and granted summary judgment for repayment of the mistaken funds.

Appeal from an arbitral award under s. 45(1) of the Arbitration Act, 1991 concerning a joint venture relating to mining concessions in Peru.

The arbitrator held that the appellants breached a contractual right of first offer and a trust relationship by granting a cesión minera (assignment of concession rights) to a third party without offering the opportunity to the respondents.

The court upheld the arbitrator’s finding that entering into the cesión minera triggered the right of first offer and constituted a breach of the contractual trust arrangement.

However, the court found the arbitrator erred in law by concluding that the parties’ relationship constituted a partnership giving rise to broader fiduciary duties and by crafting a remedy tied to the broader share purchase agreement rather than the cesión minera itself.

The appeal was therefore allowed in part and the matter remitted to the arbitrator to determine appropriate terms for offering the cesión minera to the respondents.