Cristina Beatriz Borbely

The decision concerns an application by Sherif Gerges Pharmacy Professional Corporation and Sherif Gerges for the appointment of an inspector under the Ontario Business Corporations Act to investigate the business and financial affairs of Seva Drug Mart Inc. and Eglinton Drugs Inc., as well as for leave to bring derivative actions on behalf of those corporations and Woodbine Downs Healthcare Realty Inc. The court granted the appointment of an inspector and leave to bring the proposed actions, rejecting the respondents' arguments that arbitration provisions applied and that certain claims were statute-barred.

The court also addressed the allocation of costs for the investigation and the proposed actions.

This is a costs endorsement following a decision where solar energy suppliers (the "Suppliers") successfully argued that their "Optimizations" did not constitute "Contract Facility Amendments" under their Feed-in-Tariff (FIT) contracts with the Independent Electricity System Operator (IESO).

The Suppliers sought approximately $2 million in partial indemnity costs, while the IESO proposed around $817,000.

The court, applying Rule 57 factors, found the issues complex and high-stakes for both parties.

Despite the Suppliers' higher learning curve and efficient litigation, the court deemed their claimed hours disproportionate.

The court fixed the aggregate partial indemnity legal fees at $1 million, plus disbursements of $270,000 (less specific deductions), finding this amount fair, reasonable, and proportionate given all circumstances.

The Independent Electricity System Operator (IESO) sought to prevent solar energy suppliers from increasing their DC capacity, arguing it constituted a 'Contract Facility Amendment' requiring IESO consent under Feed-in-Tariff (FIT) 1.3 and 1.5 contracts.

The suppliers argued that such 'Optimizations' did not require consent as they did not alter features explicitly outlined in the contract application or cover page, and did not exceed AC capacity limits.

The court found that the Optimizations were not Contract Facility Amendments requiring IESO notice and consent, as DC capacity was not an 'outlined' feature in the contracts.

The suppliers' applications for declarations were granted, and the IESO's counter-applications were dismissed.