Court File and Parties

Court File No: 348/11 Date: 2011-09-30 Superior Court of Justice - Ontario Divisional Court

Re: General Electric Canada Real Estate Financing Holding Company and General Electric Canada Holdings Company, Applicants And: Liberty Assisted Living Inc., 729285 Ontario Limited, Amir Kassam, Rahim Bhaloo and Meyers Norris Penny Limited in its capacity as Receiver and Trustee in Bankruptcy of the Estates of 2008777 Ontario Inc., 2004631 Ontario Inc., 912087 Ontario Limited and 2007383 Ontario Inc., Respondents

Before: The Honourable Mr. Justice S.N. Lederman

Counsel: Timothy Pinos, for the Moving Party, 729285 Ontario Limited Clifton Prophet & Nicholas Kluge, for the Respondents, Meyers Norris Penny Limited in its capacity as Trustee in Bankruptcy of the Estates of 2008777 Ontario Inc., 2004631 Ontario Inc., 912087 Ontario Limited and 2007383 Ontario Inc. Lou Brzezinski & Grace J. Kim, for the Applicants S. Mitra & D. Reiter, for the Receiver, Albert Gelman Inc.

Heard at Toronto: Written submissions

Endorsement As To Costs

[1] Costs submissions were received from counsel for the Receiver and Trustee in Bankruptcy for the Bankrupt Companies (the "Trustee"), and from counsel for the GE group of companies ("GE"). Despite reminders, Mr. Pinos, on behalf of the moving party, 729285 Ontario Limited has made no submissions whatsoever.

[2] The Trustee's position is that, having been successful, it is entitled to its costs for attendance at the motion for a stay before Justice Campbell on July 11, 2011 which was adjourned and the motions for leave to appeal and for a stay that were heard by me on August 4, 2011. The Trustee was successful on these motions and seeks partial indemnity costs in the total amount of $24,028.42.

[3] GE also seeks its costs on a partial indemnity basis in the total amount of $7,323.41.

[4] Both parties are certainly entitled to their costs. As to quantum, I have taken into account the fact that the Trustee's mandate in these proceedings has been thwarted and made ineffective by the conduct of the respondents. The seeking of leave to appeal from the decision of Brown J. and stay of his Order has resulted in further costs in ongoing efforts to obtain accurate information for the Trustee to carry out its work.

[5] Among the other factors to be considered is the principle of proportionality and the consideration of what an unsuccessful party would reasonably expect to pay in relation to such proceedings.

[6] With these factors in mind together with the others stated in rule 57.01(1), I fix the Trustee's costs at $20,000 all inclusive and the costs of GE at $7,323.41 all inclusive, payable by the respondent 729285 Ontario Limited within 30 days.

Lederman J.

Released: September 30, 2011