Ronald D. Davis

The appellants were successful on appeal from a summary judgment decision.

The Court of Appeal addressed costs following the appeal.

Counsel for the respondent agreed that the appellants' claimed costs of $18,686.25, comprising $17,132.50 in fees on the partial indemnity scale and $1,553.75 in disbursements, were reasonable.

The court ordered that amount in costs, inclusive of HST, be paid by the respondent to the appellants.

Appellants purchased a franchise from the respondent and sought rescission under section 6(2) of the Arthur Wishart Act (Franchise Disclosure), 2000 on the basis that no proper disclosure document was provided.

The motion judge found the disclosure deficient but held that the appellants received sufficient information to make an informed decision and that deficiencies were not significant or misleading.

The Court of Appeal allowed the appeal, finding that material deficiencies in the disclosure document—specifically the absence of two required director signatures and failure to provide current audited financial statements—rendered the purported disclosure document invalid under the Act and Regulation.

The appellants were entitled to rescission under section 6(2).