Gary Moulton

Following the appointment of a receiver over corporate defendants’ books and records in a commercial dispute involving alleged fraud and breach of agreements, the court determined the quantum of costs payable to the successful plaintiff.

The plaintiff sought partial indemnity costs exceeding $298,000, including substantial disbursements for forensic accounting services.

The defendants challenged the reasonableness of the fees and argued certain expert-related disbursements were not recoverable.

The court held that detailed cost outlines rather than docket production were sufficient, emphasized that costs must be fair and reasonable to the unsuccessful party under Rule 57.01(1), and confirmed that expert forensic accounting fees were recoverable.

Costs were fixed at $180,000 plus HST for fees and $67,566.14 for disbursements, payable jointly and severally by the defendants.

The plaintiff moved for the appointment of a receiver over the books and records of several corporate defendants following loans exceeding USD $111 million for casino and gaming ventures in Jamaica and the Dominican Republic.

The defendants failed to provide required financial reporting, access to records, and audited statements despite contractual obligations and prior court orders.

Evidence indicated possible fraudulent reporting, significant discrepancies in financial information, and unexplained diversion of approximately $50 million to related entities.

The court held that the defendants had repeatedly obstructed access to records and that the circumstances justified the equitable appointment of a receiver to secure and review corporate books and records.

The motion was granted.