Court File and Parties

Court: COURT OF APPEAL FOR ONTARIO Date: 2024-11-21 Docket: M55301, M55412 (COA-24-CV-0318)

In the Matter of the Bankruptcy of Martha Lorraine Beach, of the Village of Inverary, in the County of Frontenac, in the Province of Ontario

Before: Zarnett J.A. (Motions Judge)

Between: Heliotrope Investment Corporation Moving Party (Respondent/Moving Party/Responding Party by way of cross-motion)

And: 1073650 Ontario Inc., 1324789 Ontario Inc. and 2290998 Ontario Inc. Responding Parties (Appellants)

Counsel: Denise Sayer and Percy Ostroff, for the respondent/moving party (M55301)/responding party by way of cross-motion (M55412), Heliotrope Investment Corporation Karey Anne Dhirani, for the appellant/responding party (M55301)/moving party by way of cross-motion (M55412), Gary Beach

Heard: October 10, 2024

Costs Endorsement

[1] Gary Beach filed an appeal from an order appointing a receiver for three corporations. The appeal required leave; Mr. Beach brought a motion (M55412) for leave to appeal, and an extension of time within which to seek it. Heliotrope Investment Corporation (“Heliotrope”), which had successfully obtained the receivership order, brought its own motion (M55301) contending that leave was required to appeal the receivership order and that leave should not be granted.

[2] By reasons dated October 18, 2024, I dismissed Mr. Beach’s motion. I also dismissed Heliotrope’s motion as moot in light of the acknowledgement by Mr. Beach’s counsel that the appeal Mr. Beach filed needed leave and the dismissal of his request for leave: Heliotrope Investment Corporation v. 1073650 Ontario Inc., 2024 ONCA 767.

[3] Heliotrope seeks costs of the motions in the sum of $15,000. Heliotrope submits that the $15,000 cost award should be payable on a joint and several basis by Mr. Beach and the three corporations in receivership – 1073650 Ontario Inc., 1324789 Ontario Inc. and 2290998 Ontario Inc. – and that the costs should be a priority claim in their receiverships. According to an email from his counsel, Mr. Beach takes no position with respect to Heliotrope’s request.

[4] I award costs of the motions to Heliotrope, payable by Mr. Beach, fixed in the sum of $15,000, inclusive of disbursements and applicable taxes.

[5] I decline the request that the costs be payable by the three corporations, whether as a priority claim or at all. Although Mr. Beach filed the appeal naming the corporations (as well as himself and his spouse) as appellants, it is not apparent that he had any authority to act for them. The corporations did not appear on the motions, and there is no indication that the receiver has consented to an order making the corporations liable for costs.

“B. Zarnett J.A.”