Freya J. Kristjanson

A costs decision following an application under the Municipal Conflict of Interest Act concerning alleged conflicts of interest by a municipal official.

The successful party sought partial indemnity costs exceeding $394,000.

The court considered whether the unsuccessful applicant should be relieved from a costs award on the basis that the litigation was brought in the public interest, applying the factors from St. James’ Preservation Society v. Toronto (City).

The court concluded the litigation was not genuine public interest litigation, noting partisan political motivations and the limited practical significance of the application.

Considering divided success on several substantive issues and the need to balance deterrence of frivolous litigation against discouraging citizens from seeking public office, the court reduced the claimed amount and awarded $170,000 in costs.

A municipal conflict of interest application sought removal of a mayor from office under the Municipal Conflict of Interest Act.

The respondent mayor brought a motion to convert the proceeding from an application to an action requiring a full trial with viva voce evidence.

The court held that the Act does not require all such proceedings to proceed by trial and that applications may be determined on affidavit evidence, subject to the court’s discretion to order oral evidence or a trial of issues where necessary.

At this preliminary stage, the evidentiary record was incomplete and it was premature to determine whether material facts were in dispute.

The motion to convert the proceeding to an action was therefore dismissed without prejudice.