The applicant sought directions regarding the respondent corporation's failure to advance legal fees for his defence against U.S. criminal charges and Canadian extradition proceedings, pursuant to a prior court order and s. 124(2) of the CBCA.
The court held that the test for advancement is whether the expenses were thought prudent and appropriate in the good faith professional judgment of competent counsel, without second-guessing specific tactics.
The court ordered the advancement of most of the claimed legal fees, subject to a discount for duplication of effort, but denied advancement for certain investigator fees due to insufficient evidence of reasonableness.
The respondent's cross-motion seeking to impose prospective conditions and security requirements on future advances was dismissed for lack of jurisdiction.
