Court of Appeal for Ontario

Date: 2026-02-17 Docket: COA-25-CV-0770

Huscroft, Trotter and Favreau JJ.A.

Parties

Between:

Kapital Produce Limited, Kapital Produce (2000) Inc. and M.O.S. Enterprises Limited Plaintiffs (Respondents)

and

Farm Credit Canada Defendant (Appellant)

Counsel

Chris Burr and Jake Harris, for the appellant

Myron W. Shulgan, for the respondents

Heard and rendered orally: February 12, 2026

On appeal from the order of Justice Pamela L. Hebner of the Superior Court of Justice, dated May 20, 2025, with reasons at 2025 ONSC 3006.

Reasons for Decision

[1] This court does not have jurisdiction over this appeal. The motion judge refused to order payment into court of what the parties refer to as a "costs reserve". There has been no determination made as to whether the appellant will ultimately be entitled to its costs, and if so on what scale and in what amount. The fact that the order arises from a contractual interpretation does not make a difference. This is an interlocutory order akin to an order dismissing a motion for security for costs. An appeal from this order would have to be brought to the Divisional Court, with leave.

[2] As agreed between the parties, we order costs to the respondents in the amount of $7,500 all inclusive.

"Grant Huscroft J.A."

"Gary Trotter J.A."

"L. Favreau J.A."