Charles L. Merovitz

This is a costs endorsement following the dismissal of an appeal by the Court of Appeal for Ontario.

The respondents sought full indemnity costs, citing contractual language in mortgage actions and the appellants' "reprehensible conduct" and "scurrilous accusations." The appellants argued the claim was excessive and duplicative.

The court, while acknowledging contractual full indemnity, exercised its overriding discretion due to the complex and overly litigious nature of the case, finding both parties contributed to procedural skirmishes.

The court fixed costs payable by the appellants to the respondents at $170,000, all-inclusive, a reduction from the $190,372 claimed.

The appellants (Beach parties) appealed summary judgments granted in favour of the respondents (Magenta parties) in three mortgage enforcement actions, and the motion judge's refusal to stay enforcement of those judgments.

The Court of Appeal dismissed the appeals, finding no error in the motion judge's decision to grant summary judgment or to decline a stay.

The court clarified and applied a restated multi-factorial approach for stays under Rule 20.08 of the Rules of Civil Procedure, considering the merits of the counterclaim, the relationship between claims, the defendant's litigation conduct, and the balance of prejudice.

The Appellants sought two orders from the Court of Appeal: an extension of time to file a Supplementary Notice of Appeal to clarify that they were appealing the underlying summary judgment on both grounds raised below, and permission to file fresh evidence.

The court granted the extension for the Supplementary Notice of Appeal, finding that the Appellants had intended to appeal both issues from the outset and that it was in the interest of justice to permit this clarification.

However, the motion to adduce fresh evidence was denied, as the evidence was not new and could have been adduced at the original summary judgment motion.

The defendants brought a motion to consolidate several debt enforcement actions with a related action they commenced against the plaintiff and others, arising from a failed joint venture.

The court dismissed the motion, finding that the debt enforcement actions were capable of summary determination and that the balance of convenience did not favour consolidation, as it would unnecessarily delay the adjudication of the debt claims.

The plaintiff mortgagee sought summary judgment on multiple defaulted mortgages granted to the defendants to fund a joint venture land development project.

The defendants argued the mortgages were unenforceable due to an oral agreement that the loans would only be repaid from future lot sales, and disputed the amounts owing.

The court granted summary judgment, holding that the alleged oral agreement was barred by the Statute of Frauds and the doctrine of part performance did not apply.

The court also declined to stay the enforcement of the judgments under Rule 20.08, finding the defendants' counterclaims lacked merit and the prejudice to the plaintiffs in delaying recovery was significant.

The respondent in matrimonial litigation moved to have the former case management judge recuse himself due to a reasonable apprehension of bias.

The new case management judge dismissed the motion, finding it premature and pointless as the former judge was not scheduled for future involvement.

The court determined the respondent had an ulterior motive to revisit prior rulings and that the motion constituted an abuse of process, contrary to the Family Law Rules' objectives of saving time and expense.

The plaintiff corporation brought a motion for summary judgment to enforce a mortgage against the defendant corporation.

The dispute involved two brothers, one acting as the plaintiff's director under a power of attorney from their father, and the other as the sole shareholder of the defendant.

The defendant argued that an oral agreement precluded enforcement and that the father lacked capacity to grant the power of attorney authorizing the action.

The court rejected the oral agreement defence based on the Statute of Frauds and the parol evidence rule.

However, finding a genuine issue regarding the father's capacity, the court stayed the motion for 30 days to allow the defendant's principal to commence proceedings under the Substitute Decisions Act to challenge the power of attorney.

The plaintiff brought a motion for a certificate of pending litigation regarding a terminated agreement of purchase and sale for commercial property.

The plaintiff had failed to close the transaction due to a lack of funds and waived tender, resulting in the forfeiture of its deposits.

The plaintiff subsequently alleged that the defendant failed to disclose unrelated litigation in Quebec, arguing this non-disclosure kept the agreement alive.

The court found the Quebec litigation irrelevant, determined the property was not unique, and concluded damages would be an adequate remedy.

The motion was dismissed.