The corporate plaintiff, 2505805 Ontario Inc. (the "Consultant"), brought a motion to enforce a contractual indemnification provision in a consulting agreement, seeking advance payment of legal fees.
The defendants argued the motion was an improper attempt at partial summary judgment and that corporate indemnity statutes (CBCA/OBCA) applied, requiring the consultant to have acted honestly and in good faith.
The court dismissed the motion, finding that the relief sought constituted partial summary judgment on issues central to the main action, which is generally discouraged by the Court of Appeal.
Furthermore, the court held that the corporate indemnity statutes did not apply because the Consultant was a corporation, not an individual officer or director, and therefore not subject to those specific statutory provisions.