The appellants, former directors of a condominium corporation, appealed two costs decisions that ordered them to personally pay costs for an unsuccessful injunction motion and an administration application they initiated on behalf of the corporation.
The Divisional Court allowed the appeal regarding the injunction motion, finding the motion judge erred by failing to apply the 'man of straw' test for awarding costs against non-parties.
However, the court dismissed the appeal regarding the administration application, finding the application judge correctly applied the test, properly found the directors acted in bad faith, and afforded procedural fairness.
The costs for the injunction motion were redirected to the condominium corporation.
