Doug Worndl

After dismissing an application for a Norwich order compelling a newspaper to reveal confidential sources related to a business news story, the court addressed the issue of costs.

The unsuccessful applicant argued that no costs should be awarded because the proceeding raised novel and public interest issues linked to a proposed securities class action.

The court held that although the litigation had some public interest elements, it was fundamentally a private claim seeking recovery of trading losses.

Applying the factors in Rule 57.01 and considering the access to justice concerns noted by the Court of Appeal in class action jurisprudence, the court reduced the respondents’ claimed costs but fixed a substantial award.

Costs were ordered against the applicant on a partial indemnity basis.

The applicant sought a Norwich order compelling a journalist and newspaper to disclose the identities of confidential sources quoted in an article concerning the BCE leveraged buy-out negotiations.

The applicant alleged the sources’ statements were misleading or unlawful under the Securities Act and caused trading losses, and intended to pursue a proposed securities class action against them.

The court applied the Norwich test together with the Wigmore framework for journalist‑source privilege.

It found that any alleged breach of securities law was speculative and minimal, and that the public interest in protecting confidential journalistic sources outweighed the limited interest in disclosure for a civil claim.

The journalist‑source privilege was therefore upheld and disclosure refused.