Sarah Weingarten

Following a 41-day trial where the plaintiff succeeded against one defendant (Cassels) but failed against another (GMCL), the court determined the costs awards.

The plaintiff was awarded partial indemnity costs against Cassels, apportioned at 40% of fees and 50% of disbursements to reflect the divided success of the action.

GMCL sought substantial indemnity costs against the plaintiff, arguing the plaintiff made unfounded allegations of misconduct.

The court rejected this, finding the allegations were not reprehensible, and awarded GMCL partial indemnity costs, subject to a 10% reduction for duplication between its two law firms.

The plaintiff was also awarded costs for successfully defending GMCL's counterclaim.

A class action brought by automobile dealers challenged a manufacturer’s 2009 wind‑down agreements issued during the global financial crisis, alleging breaches of the statutory duty of fair dealing, disclosure obligations, and the right of association under franchise legislation.

The court held the manufacturer did not breach its contractual or statutory obligations in implementing the dealer reduction plan or issuing the agreements under urgent restructuring circumstances.

However, the law firm advising the dealer group was found to have breached fiduciary duties, contractual duties, and the standard of care by acting despite conflicts of interest and failing to properly advise the dealers during the restructuring process.

The court concluded that the lawyers’ misconduct deprived the dealers of a real opportunity to negotiate improved termination compensation.

Aggregate damages were therefore awarded for loss of that negotiation opportunity.

In a CCAA proceeding, the Applicants (Hollinger Inc. et al.) sought approval of settlement agreements with their former auditors (KPMG) and lawyers (Torys).

The Non-Settling Defendants, including Conrad Black and David Radler, opposed the settlements, arguing the court lacked jurisdiction and that the included third-party releases and bar orders would deprive them of procedural rights to discovery.

The court held it had jurisdiction under the CCAA to manage litigation as a corporate asset.

The court approved the Pierringer-style settlements, finding that the procedural rights of the Non-Settling Defendants could be adequately protected through active case management and the application of the principle of proportionality in discovery.