Mark Hines

The defendants moved for summary judgment dismissing a multi-million dollar action and seeking judgment on two promissory notes totalling $1.25 million.

The court held that a broadly worded release executed in November 2009 barred most of the plaintiffs’ claims, particularly in light of admissions that the parties had a “clean slate.” However, the enforceability of the two promissory notes raised genuine issues requiring a trial because the surrounding documentation was inconsistent and some documents were admittedly fabricated.

After conducting a mini‑trial under Rule 20.04(2.2), the court concluded that a full appreciation of the evidence regarding the promissory notes could not be achieved on a summary judgment record.

Most of the plaintiffs’ action was dismissed, but the counterclaim relating to the promissory notes was directed to trial.

The plaintiffs in a Canadian class action brought a motion to divide approximately $5.2 million from a partial settlement with Bresea Resources Ltd. between Canadian and American class members.

The plaintiffs also sought to amend the settlement agreement to continue holding a reserve for adverse costs.

The court granted the amendment for the adverse costs reserve.

Regarding the settlement distribution, Canadian class counsel argued that a previously agreed 67:33 split in favour of the Canadian class was a mistake and should be 80:20 based on share ownership.

The court rejected the claim of mistake, finding the 67:33 split reasonable and fair as trading losses do not necessarily correlate directly with share ownership.

The plaintiff, acting as Trustee in Bankruptcy for Bre-X Minerals Ltd., brought a motion for leave to discontinue a derivative action against the remaining defendants without costs.

The action had dwindled to insider trading claims, and the Trustee lacked the financial resources to continue prosecuting it or to enforce any potential judgment overseas.

The court found the proposed discontinuance to be fair and reasonable to all affected shareholders and granted leave to discontinue the action pursuant to section 249(2) of the Business Corporations Act.