David Paul Jacobs

This is a costs endorsement following the Court of Appeal's decision allowing an appeal by the Estate of Gabriel Zimmerman regarding its entitlement to be added as a party to the underlying action.

The court determined the costs payable by the respondents to both the Estate and the defendants for the motion heard in the lower court.

The Estate was awarded its actual partial indemnity costs, and the defendants were also awarded costs on a partial indemnity basis despite not participating in the appeal, as they benefited from the appellate decision.

Two shareholders of a holding company that owns a commercial property brought an action against defendants for their full share of annual rental income.

The property manager held back part of the funds based on acknowledgements allegedly signed by the shareholders in 2002, which purported to give a deceased property manager a 25% interest in their entitlements.

The defendants moved to add the estate of the deceased manager as a necessary party.

The motion judge dismissed the motion on the basis that the estate's claim was statute barred under the Limitations Act, 2002.

The Court of Appeal allowed the appeal, holding that the estate's claim was not statute barred because the defendants never pleaded a limitations defence and had in fact invited the estate to assert its claim.

The Plaintiffs, co-owners of an income property, successfully opposed a motion by the Defendants to add the Estate of Gabriel Zimmerman as a party to their action against property managers.

This endorsement addresses the Plaintiffs' request for substantial indemnity costs.

The court found substantial indemnity costs appropriate given the Estate was out of time and the motion was a delaying tactic, and the Plaintiffs' offer to settle was reasonable.

The court awarded joint and several costs of $45,000.00 against the Defendants and the Estate, with the Estate's liability limited to $36,982.50.

The court rejected the Defendants' argument to pay costs from the disputed funds, stating it would penalize the Plaintiffs for winning.

The defendants sought leave to add the Estate of Gabriel Zimmerman as a party, direct payment of withheld rental income into court, and be released from liability.

The plaintiffs opposed, arguing the estate's claim was statute-barred.

The court dismissed the motion, finding the estate's claim was subject to the two-year limitation period under the Limitations Act, which had expired, and that the Trustee Act did not apply to extend the period.

The court also declined to apply the Doctrine of Special Circumstances, noting the claim had been known for years without compelling explanation for inaction.