Edmund Se Huang

This is a costs endorsement following the dismissal of an appeal.

The Court of Appeal for Ontario awarded all-inclusive costs of $200,000 to the successful respondent, Ontario First Nations (2008) Limited Partnership, against the appellants, Ontario Lottery and Gaming Corporation and Her Majesty the Queen in right of Ontario.

The decision considered that this was the second level of appeal, the issues involved, and the respondent's success.

This is an appeal from a Superior Court decision upholding an arbitration award.

The arbitration panel found that Ontario and OLG breached a Gaming Revenue Sharing and Financial Agreement with the First Nations Partnership by unilaterally stopping payments of non-gaming revenue and complimentary services ("Comps") after outsourcing non-gaming amenities.

The Court of Appeal dismissed the appeals, affirming the lower court's decision that the Agreement was breached and the damages awarded were appropriate.

The court declined to rule on the standard of review for commercial arbitration decisions post-Vavilov, finding the outcome would be the same under either standard, and also declined to address the "honour of the Crown" doctrine as it was not determinative.

Her Majesty the Queen in right of Ontario sought to lift a stay on its $330 billion health care cost recovery action against three tobacco companies (JTI-Macdonald Corp., Imperial Tobacco, Rothmans, Benson & Hedges Inc.) and eleven co-defendants, which was imposed under CCAA proceedings.

Ontario proposed to temporarily stay the effects of any judgment.

The court dismissed the motion, emphasizing the need to preserve the status quo in CCAA proceedings to facilitate a global resolution of significant claims.

Allowing Ontario's action to proceed would alter the level playing field, distract from restructuring efforts, and impose significant costs, prejudicing other stakeholders.

The applicants, JTI-Macdonald Corp., Imperial Tobacco Canada Limited, Imperial Tobacco Company Limited, and Rothmans, Benson & Hedges Inc., sought protection under the Companies' Creditors Arrangement Act (CCAA) following a $13.5 billion judgment from the Quebec Court of Appeal and other ongoing litigation.

JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc. moved for orders to file Supreme Court of Canada (SCC) leave applications but suspend further proceedings.

Imperial Tobacco Canada Limited and Imperial Tobacco Company Limited sought a blanket stay of all proceedings and limitation periods.

The Quebec class action plaintiffs opposed the motions and sought to partially lift the stay.

The court affirmed its broad jurisdiction under CCAA s. 11 to stay all actions, including appellate proceedings and limitation periods.

The court dismissed the motion by JTI-Macdonald Corp. and Rothmans, Benson & Hedges Inc., and granted Imperial Tobacco's motion, finding that a blanket stay best preserved the status quo and facilitated a global resolution for all stakeholders.

Following the dismissal of the plaintiff's class action, the court addressed costs.

Her Majesty the Queen in Right of Ontario (HMQ) sought costs on a partial indemnity basis totaling $779,405.70.

The plaintiff argued for no costs or a significant reduction, citing novel points of law and public interest under s. 31 of the Class Proceedings Act, 1992.

The court found that the complex legal issues initially raised were not ultimately pursued, rendering s. 31 inapplicable.

However, the court disallowed HMQ's costs for an unsuccessful summary judgment motion, granting the plaintiff a credit of $216,550.

Ultimately, HMQ was awarded costs fixed at $470,810 for fees and $92,045.70 for disbursements, for a total of $562,855.70.

Following dismissal of jurisdiction motions brought by several foreign tobacco companies in a health care cost recovery action, the court determined costs.

The unsuccessful moving parties argued that earlier evidentiary and procedural steps constituted separate proceedings and sought substantial costs for those steps.

The court rejected that characterization, holding that all preliminary steps formed part of the overall jurisdiction challenge and that distributive costs awards based on success on individual steps should be avoided.

Applying Rule 57.01 factors and general costs principles, the court found the responding party was the successful party and entitled to costs, subject to reductions reflecting partial success on certain evidentiary and motion issues.

The court awarded partial indemnity costs of $425,000 plus disbursements, allocating liability between two groups of moving defendants.