Cheryl Gerhardt McLuckie

Following the defendant’s successful motion to strike the statement of claim and the plaintiffs’ unsuccessful motion to amend, the court determined the appropriate costs award.

The defendant sought substantial indemnity costs totaling more than $32,000, arguing the action resembled a strategic lawsuit against public participation (SLAPP) intended to silence complaints made to the Office of the Superintendent in Bankruptcy.

The court accepted that the defendant was entirely successful but held that the defendant’s original costs outlines represented a reasonable expectation of costs payable by an unsuccessful party.

Costs were therefore fixed partly on a partial indemnity basis and partly on a substantial indemnity basis, with additional costs for the action.

The court declined to add additional amounts for Quebec counsel or expanded claims beyond the original outlines.

The defendant brought a motion to strike the plaintiffs' statement of claim for defamation, arguing the impugned statements were protected by absolute privilege.

The statements were made in letters of complaint to the Office of the Superintendent of Bankruptcy regarding the conduct of the plaintiffs in their capacity as bankruptcy trustee and associate.

The court found that the Superintendent of Bankruptcy is a quasi-judicial body and that the complaints were protected by absolute privilege.

The court struck the statement of claim and denied the plaintiffs' motion for leave to amend, finding the proposed amendments were legally untenable.