G. John Samms

Tacora Resources Inc. sought an interpleader order to deposit mining royalty payments into court due to competing instructions from two groups claiming control over the payee, 1128349 B.C. Ltd. The application judge dismissed the application, finding no 'adverse claims' and a lack of jurisdiction, but issued an unrequested interim order directing payment to one group's counsel.

The Court of Appeal allowed the appeal, holding that the competing instructions constituted adverse claims under Rule 43, the Ontario court had jurisdiction, and the interim order was improperly granted.

Tacora was permitted to pay the royalties into court pending resolution of the corporate control dispute.

The applicant, an Ontario company operating a mine in Newfoundland, sought an interpleader order under Rule 43 to pay quarterly royalties into court.

The applicant faced conflicting demands regarding payment due to a corporate governance dispute over the parent company of the creditor, which was being litigated in the Cayman Islands and British Columbia.

The court dismissed the application, finding that Rule 43 is unavailable when the court lacks jurisdiction to determine the underlying dispute over corporate control.

However, the court granted interim relief allowing the applicant to pay the funds to the creditor's counsel in trust for 90 days to permit the commencement of interpleader proceedings in the appropriate forum.