The First Nations moved to vary costs awards against the Estate of William Albin Herold, seeking to make Jeffrey S. Herold, the Estate Trustee, jointly and severally liable for over $190,000 in costs.
This motion was brought under Rule 59.06(2)(a) after the First Nations discovered that Mr. Herold had personally received a transfer of Lot 35, the property forming the basis of the Estate's claim to certain islands, a fact not disclosed during the original litigation.
The Court of Appeal dismissed the motion regarding Supreme Court of Canada costs, stating it lacked authority, but granted the variation for its own costs awards.
The court found that the non-disclosure was a material fact, not a mere irregularity, and that Mr. Herold was the true litigant, satisfying the "person of straw" test for imposing costs on a non-party.
