Robert W. Staley

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.

The applicants and respondent both sought costs following an application regarding the enforceability of a contingency fee agreement.

The applicants had abandoned part of their claim shortly before the hearing, conceding the agreement applied to the trial award, but succeeded in arguing it did not apply to the appeal award or settlement.

The court found there was divided success and that the applicants' abandonment of claims did not warrant a costs award against them, as the respondent's work contributed to the success on that portion.

Consequently, the court ordered no costs to either party.