Margaret L. McCarthy

The appellant, a charity licensed to sell break open lottery tickets (BOTs), brought a class action seeking restitution of a provincial administration fee, arguing it was an unconstitutional indirect tax.

The respondents successfully moved for summary judgment to strike the restitution claim, adducing evidence that the fee was borne by consumers through a reduced prize board, not by the charities.

The Court of Appeal upheld the summary judgment, finding the appellant failed to adduce evidence showing a genuine issue for trial regarding who bore the burden of the fee or its entitlement to restitution.

Following an appeal, the court received written submissions regarding the quantum of costs.

The court rejected the appellant's argument that the appeal involved a novel issue of law or public interest, but agreed that the respondents' claimed costs were excessive.

Costs were fixed on a partial-indemnity basis at $15,000 payable to each of the two respondent groups.

The appellant, an investor who purchased shares in the secondary market, sought to certify a class proceeding against the issuer, underwriters, and auditors for negligent misrepresentation in a prospectus.

The motions judge dismissed the action, finding the pleadings failed to disclose a reasonable cause of action as they did not establish a special relationship giving rise to a duty of care.

The Court of Appeal upheld the dismissal, agreeing that the pleadings lacked material facts to support a duty of care owed to secondary market purchasers by the auditors or underwriters.