P. A. Neena Gupta

The Court of Appeal for Ontario heard an appeal and cross-appeal concerning damages for conversion of a "book of business" in the transportation insurance industry.

The trial judge had found conversion of one book (TRIP book) but not another (Kimberly book), and did not fully address other causes of action like breach of contract, breach of confidence, and fiduciary duty.

The Court of Appeal found that the trial judge's conversion analysis was flawed, particularly regarding the nature of intangible property and the sufficiency of findings.

It also held that the trial judge erred by not separately addressing the other pleaded causes of action.

Consequently, the Court allowed both the appeal and cross-appeal, set aside the trial decision, and ordered a new trial on all causes of action.

The defendants, having successfully obtained a dismissal of the plaintiffs' action on limitation grounds, sought costs on a substantial indemnity basis.

The plaintiffs opposed, arguing the issues were not complex and that allegations of fraud were not adjudicated.

The court considered the complexity of the original claim, the significant amount claimed, the plaintiffs' pursuit of a statute-barred action despite early notice, and unsubstantiated allegations of fraud.

Applying Rule 57.01 factors, the court found that the plaintiffs' conduct warranted an award of costs higher than partial indemnity.