Hendrik T. Nieuwland

Following a motion in which the defendants successfully obtained a stay of the civil action pending determination by the Ontario Labour Relations Board, the court addressed the issue of costs.

The moving parties sought substantial or partial indemnity costs, arguing they were entirely successful and had proceeded on an expedited timeline at the insistence of the responding parties.

The responding parties argued the amounts claimed exceeded reasonable expectations and that substantial indemnity costs were inappropriate because the motion concerned jurisdiction and did not determine substantive rights.

Applying the principles under s.131(1) of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure, the court held that successful parties are generally entitled to costs but that the amount must be fair and reasonable.

Partial indemnity costs were awarded to each group of moving parties.

Unionized masonry contractors commenced a civil action alleging that employer associations and construction unions conspired to prevent them from using independent operator payment arrangements with bricklayers through amendments to provincial collective agreements.

The plaintiffs sought declarations that the collective agreements and memorandum of agreement were unlawful, injunctive relief, and damages for economic torts.

The defendants moved to dismiss or stay the action on the basis that the dispute fell within the exclusive jurisdiction of the Ontario Labour Relations Board.

Applying the framework from Weber v. Ontario Hydro, the court held that the essential character of the dispute concerned labour relations issues including the validity and scope of collective agreements and the relationship between employers and unionized workers.

Because those matters fall within the OLRB’s exclusive jurisdiction under the Labour Relations Act, the court stayed the action and declined to consider the requested injunctive relief.