Nick Porco

Following a successful application for leave to commence a derivative action, the applicant sought costs of $14,305.97.

The respondent conceded entitlement but argued the amount was excessive, suggesting a range of $3,000 to $5,000.

Considering the straightforward nature of the application, the volume of materials, and the principle of proportionality, the court fixed costs at $8,500 inclusive of disbursements and taxes.

The applicant, a director of a software corporation, sought leave under section 246 of the Business Corporations Act to commence a derivative action against the other two directors.

The applicant alleged the respondents breached their fiduciary duties by misappropriating corporate assets and diverting revenues to a competing company.

The responding director argued the claim was personal and should be pursued via an oppression remedy.

The court granted leave, finding the applicant acted in good faith, the proposed action was in the corporation's best interests, and the claim sought redress solely for wrongs done to the corporation rather than personal interests.