Ontario Superior Court of Justice In Bankruptcy

Court File No.: 31-1422908
Date: 20120709

IN THE MATTER OF THE BANKRUPTCY OF ISTVAN KOVARCSIK OF THE CITY OF TORONTO IN THE PROVINCE OF ONTARIO

Before: Justice Newbould

Counsel:
Istovan Kovarcsik, in person, Applicant
Philip J. Gertler, for the Trustee, Respondent

E N D O R S E M E N T

[ 1 ] On June 5, 2012 I dismissed an appeal by the bankrupt Istovan Kovarcsik from the order of Deputy Registrar Diamond made under section 68 of the BIA ordering the bankrupt to pay certain amounts in surplus income to his estate and I ordered costs to be payable by the bankrupt.

[ 2 ] The trustee claims costs on a substantial indemnity basis, essentially on the basis that the appeal had no merit and that the bankrupt had been put on notice that the trustee would be seeking costs on a substantial indemnity basis. I see no basis for costs to be on a substantial indemnity basis and the usual order should be made that the costs be paid on a partial indemnity basis.

[ 3 ] The trustee seeks costs on a partial indemnity basis of $6,487.53 inclusive of HST. The bankrupt opposes any costs, essentially re-arguing his position on the merits before the Deputy Register and before me on the appeal. The time included in the cost outline of the receiver looks reasonable, as are the hourly rates other than two hours at $400 per hour for attendance at a security for costs motion.

[ 4 ] Taking into account the factors contained in rule 57.01, including what Mr. Kovarcsik could reasonably expect to pay as a bankrupt, I fix the costs payable by Mr. Kovarcsik to his estate at $5,000 inclusive of HST, such amount to be added to the surplus income payable by him.

Newbould J.

DATE: July 9, 2012