L. Murray Eades

Following the dismissal of the plaintiffs’ action on a summary judgment motion, the successful defendants sought costs.

The plaintiffs argued that no costs should be awarded due to financial hardship and requested that any costs order include limited monthly payments and enforcement restrictions.

The court reviewed the principles governing costs under s. 131 of the Courts of Justice Act and authorities addressing whether impecuniosity should influence a costs award.

The court held that economic hardship did not justify departing from the general rule that costs follow the event and found the plaintiffs’ claims to be ill‑conceived.

Costs were awarded to the defendants, including a reduced amount for one defendant who retained separate counsel shortly before the motion hearing.

The defendants brought a motion for summary judgment to dismiss the plaintiffs' negligence action.

The plaintiffs, who were shareholders of a corporation, alleged that the defendants negligently terminated a contract with the corporation, causing the plaintiffs personal financial losses, including the loss of a U.S. work permit and a real estate deposit.

The court granted the motion and dismissed the action, finding that the claims were precluded by the rule in Foss v. Harbottle, as shareholders cannot sue for wrongs done to the corporation.

Furthermore, the court held that the defendants owed no duty of care to the plaintiffs due to a lack of proximity and foreseeability, and the claims for pure economic loss did not fall within recognized legal categories.