A. Speciale

The plaintiffs were successful at trial and sought costs.

Following the release of the trial judgment but before costs submissions were complete, the main defendant made an assignment in bankruptcy, triggering a stay of proceedings under s. 69(1) of the Bankruptcy and Insolvency Act.

The court held that it had jurisdiction to fix costs because the costs associated with a pre-bankruptcy judgment for a liquidated sum are regarded as an addition to the sum recovered.

The court awarded the plaintiffs $150,000 in costs on a substantial indemnity basis against the bankrupt defendant due to an unaccepted offer to settle and unfounded allegations of fraud.

The plaintiffs were also ordered to pay $5,661 in costs to a successful co-defendant, and were awarded $1,000 against another co-defendant for defending an exaggerated counterclaim.

Following a trial where the plaintiffs were successful, the defendant Negravi made an assignment in bankruptcy before costs submissions were completed.

The court held that the proceedings to fix costs were not stayed by s. 69(1) of the Bankruptcy and Insolvency Act, applying the rule from British Gold Fields that costs associated with a pre-bankruptcy judgment for a liquidated sum are added to the sum recovered.

The court awarded the plaintiffs $150,000 in costs against Negravi on a substantial indemnity basis due to his unreasonable conduct and unfounded counterclaim.

Nominal costs were awarded against another defendant, and the plaintiffs were ordered to pay costs to a successful third defendant.