Michael Strickland

The court addressed the issue of who should pay costs previously awarded after dismissing a motion brought by Bending Lake Iron Group Limited (BLIG).

The BLIG motion was deemed an abuse of process, a collateral attack on prior orders, and res judicata, with BLIG lacking standing due to its bankruptcy.

The court ordered that the costs be paid jointly and severally by BLIG's lawyer, Robert MacRae, and its directors and officers (Henry Grant Wetelainen, J. Chris Bailey, Dawn Elaine Mackay-Daynes, and Henry Clayton Wetelainen), citing the broad discretion under the Bankruptcy and Insolvency Act and Rule 57.07 of the Rules of Civil Procedure for personal costs against lawyers.

The court-appointed receiver brought a motion to approve its Fourth Report, its fees and disbursements, and to amend the Receivership Order to increase the receiver's charge from $300,000 to $700,000.

The secured creditor supported the motion, and the respondent opposed it but made no submissions.

The court granted the motion, noting that the receiver's costs had increased significantly due to the respondent's opposition to a previous sale and approval motion.

This decision addresses the costs arising from a receivership application, specifically motions to approve an asset purchase agreement and a cross-motion to postpone the sale.

The court awarded substantial indemnity costs to the Receiver due to unfounded allegations impugning its integrity.

Partial indemnity costs were awarded to the Secured Creditor and Legacy Hill Resources Ltd. The court declined to hold Mr. Wetelainen, a principal of the respondent, personally liable for costs, finding no evidence of fraud or abuse of the bankruptcy process for a wrongful collateral purpose, despite his breach of a prior order and the respondent's inability to pay.