Ellen V. Swan

The individual defendant, who is one of two shareholders and directors of the corporate defendant, brought a motion for leave to represent the corporation under Rule 15.01(2) of the Rules of Civil Procedure.

The plaintiff, who is the other shareholder and director, opposed the motion.

The court applied the Extend-A-Call factors and found that the corporation lacked the financial resources to retain counsel, and that the individual defendant was capable of comprehending the issues and advocating for the corporation.

The court granted the motion, subject to the condition that the individual defendant obtain authorization from the corporation to represent it.

Following a motion concerning the enforceability of an employment agreement, the court determined the appropriate costs award.

The plaintiff succeeded on the principal issue of enforceability, while the defendant succeeded on inducement and the dismissal of punitive damages.

The court considered the divided success, the principle of indemnity, and the factors under Rule 57.01 of the Rules of Civil Procedure and s. 131 of the Courts of Justice Act.

Although the plaintiff sought $16,505 in partial indemnity costs, the court found the amount somewhat high and adjusted the award to reflect the mixed success of the parties.

Costs were fixed at $10,000 inclusive of HST and disbursements.