Krista R. Chaytor

Following the dismissal of the plaintiff's motion to amend its Statement of Claim, the successful defendant sought costs on a substantial indemnity basis relying on a provision in a construction bond.

The court declined to award substantial indemnity costs, finding it unduly onerous and noting that only one of the three proposed amendments related to the enforcement of the bond.

Applying the principle of proportionality and the factors under Rule 57.01, the court fixed costs on a partial indemnity basis at $12,000.

The appellant appealed a trial judgment awarding damages to the respondent for wrongful termination of a commercial lease and the aborted sale of the respondent's business.

The Court of Appeal upheld the trial judge's findings on liability, agreeing that the appellant wrongfully terminated the lease and unreasonably withheld consent to assign it.

However, the Court varied the damages award, reducing it by $10,000 to account for legal fees the respondent had not actually paid.

The respondent's cross-appeal for punitive and aggravated damages was dismissed.

Following the release of the main decision, the Court of Appeal for Ontario received further submissions on costs.

The Court ordered that the costs of the application for leave, the motion for leave to appeal, and the appeal be awarded to the appellant in the cause.

The appellant appealed the dismissal of an application for leave under s. 215 of the Bankruptcy and Insolvency Act to commence an action against a trustee administering a court-approved proposal.

The Court of Appeal held that on a s. 215 motion the judge must only determine whether there is a factual basis for the claim and whether it discloses a cause of action, not finally decide the merits.

The motions judge erred by conclusively interpreting the proposal and the trustee's duties, thereby exceeding jurisdiction on the threshold application.

The court also declined to refuse leave on the basis that the appellant should have proceeded under s. 37 instead.

Leave to commence the action was granted.