2 total
Contractual full indemnity costs provision does not override court's discretion to fix fair and reasonable costs.
Following a successful application regarding a restructuring support agreement, the applicants sought full indemnity costs of approximately $1.18 million based on a contractual covenant.
The respondents argued for partial indemnity costs.
The court held that while the contractual provision for full indemnity was an important factor, it did not override the court's discretion to fix an amount that is fair and reasonable.
Finding the hours docketed by the applicants' counsel excessive for a one-issue case, the court awarded a global all-inclusive costs amount of $800,000.
Lenders have unilateral right to extend the Outside Date in restructuring support agreement.
The applicants sought a declaration regarding the interpretation of the 'Outside Date' in a restructuring support agreement.
The respondent, a cannabis company, argued that any extension of the Outside Date required its initiation or consent.
The court found that the plain and ordinary meaning of the agreement allowed the lenders to automatically extend the Outside Date upon their written consent, acting reasonably, without the need for the respondent's consent.
The court granted the declaration sought by the applicants.
