Daniel R. Lilko

This is a costs decision following a trial regarding payment of four invoices for accounting services.

The plaintiff, Bazar McBean LLP, succeeded in obtaining judgment for three of the four invoices against the corporate defendant and its principal, Brian Alger.

The court awarded costs to the plaintiff but reduced the amount sought, reflecting the plaintiff’s lack of success on its interest claim and the defendants’ partial success.

The decision discusses the application of Rule 57.01 of the Rules of Civil Procedure and the impact of settlement offers.

The plaintiff, Bazar McBean LLP, sought judgment against the defendants, 1583057 Ontario Inc. (operating as The Pop Shoppe) and its principal Brian Alger, for unpaid accounting invoices.

The court considered whether the claims were statute-barred, the entitlement to payment under the invoices, Mr. Alger’s personal liability, and the entitlement to interest.

The court found that only one invoice was statute-barred, that the plaintiff was entitled to payment for the remaining invoices (with a minor reduction), that Mr. Alger was personally liable, and that interest was to be calculated at the Courts of Justice Act rate, not the contractual rate, due to the parties’ conduct.

The appellants appealed a trial judge's decision regarding the beneficial ownership of four residential properties and a costs award.

The trial judge had found that funds advanced by the respondents were investments, not loans, and made findings on beneficial ownership and renovation quality based on witness credibility.

The Court of Appeal dismissed the appeal, upholding the trial judge's factual findings due to the high deference owed to such findings and the appellants' failure to provide a complete trial record.

Leave to appeal the costs award was denied as it was out of time and did not meet the high threshold for granting leave.

The court also rejected a new argument raised on appeal concerning the Statute of Frauds, as it was not raised at trial and the necessary record was incomplete.