Melvyn Lloyd Solmon

The Court of Appeal for Ontario issued a costs endorsement following an appeal in a bankruptcy proceeding.

After receiving submissions from the parties, the court fixed costs in favour of the respondent trustee in bankruptcy at $10,000 and in favour of the respondent creditor at $2,000, both inclusive of disbursements and GST.

The appellants appealed an order settling a prior order that approved the sale of a bankrupt company's assets, including a trademark licence agreement and shares, to Stanfield's Limited, as well as a vesting order.

The appellants argued the sale should not have been approved prior to determining entitlement to the interest in the licence agreement.

The Court of Appeal dismissed the appeal, finding the motion judge had jurisdiction under Rule 45 of the Rules of Civil Procedure to order the sale prior to determining entitlement, especially given evidence that the value of the licence agreement was deteriorating.

The dismissal of the appellants' cross-motion for an adjournment was also upheld.

The moving party sought an extension of time to serve and file a notice of appeal from an order denying her individual party status in a class action settlement.

The respondents argued that the appeal lacked merit based on previous case law.

The court found a reasonable explanation for the delay and concluded that the issue of standing should be decided by a full panel.

The motion to extend time was granted.