Anna Leslie Robinson Tombs

This decision concerns the costs arising from the dismissal of the plaintiff's motion for leave to commence a secondary market securities class action and to certify the action.

The defendants sought substantial indemnity costs, while the plaintiff argued for partial indemnity and a discount due to the alleged novel and public interest nature of the litigation.

The court awarded partial indemnity costs of $693,805.39, finding no basis for substantial indemnity as there was no reprehensible conduct or unproven fraud allegations.

The court also rejected the argument for a discount under s. 31(1) of the Class Proceedings Act, concluding that the issues were not novel or of broad public interest, particularly as they had been previously litigated.

A minor deduction was made for online research disbursements.

The plaintiff sought an order prohibiting the defendant, Rosen Ridge Farms Ltd., from pursuing an upcoming motion to set aside a trial judgment unless outstanding costs orders were satisfied and security for costs for the new motion was posted.

The court found that Rosen Ridge had repeatedly failed to comply with previous costs orders and that its claim of impecuniosity was not valid given its shareholder's refusal to post security.

The court ordered Rosen Ridge to pay $47,000 in outstanding costs and post $40,000 as security for costs by June 30, 2016, failing which its motion to set aside the trial judgment would be automatically dismissed.