SUPERIOR COURT OF JUSTICE – ONTARIO

COMMERCIAL LIST

COURT FILE NO.: CV-1410791-00CL

DATE: 2015-11-04

IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c.C-36 AS AMENDED

AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF 4519922 CANADA INC.

BEFORE: Newbould J.

COUNSEL:
Lou Brzezinski and Alexandra Teodorescu, for the Gambazzi Group

James Doris and Dina Milivojevic, for the Monitor

Mark E. Meland, for the Creditors’ Committee

John Porter and Lee Nicholson, for the Applicants

ENDORSEMENT

[1] I have now received cost submissions following my decision of October 5, 2015 in which I dismissed the motion of the Gambazzi Group for production of certain documents and ordered costs in favour of the Monitor, the Creditors’ Committee and the applicants.

[2] Costs are to be reasonable. See Davies v. Clarington (Municipality) [2009] ONCA 722. Factors to be taken into account are contained in rule 57.01, including the amount of costs that an unsuccessful party could reasonably expect to pay.

[3] In this case, the Gambazzi Group has filed a bill of costs stating that their partial indemnity fees were $11,753, which seems reasonable. I take these into account when considering the reasonableness of the fees claimed by the successful parties.

[4] The Monitor claims costs of $15,000 plus HST. The Gambazzi Group says they should only be awarded $8,000. Considering the factors in rule 57.01 and what a reasonable fee should be, I assess the Monitor’s costs at $14,000 plus HST.

[5] The Creditors’ Committee claims costs of approximately $14,000 plus disbursements and tax totalling approximately $17,000. The Gambazzi Group says they should be awarded only $5,000 and that it did not anticipate the participation of the creditors’ committee. I cannot see how they could not have expected the creditors’ committee to participate taken the extra costs that would have been necessary to deal with the hearing of the claim of the Gambazzi Group had their motion been successful. Considering the factors in rule 57.01 and what a reasonable fee should be, I assess the creditor committee’s costs at $16,000 inclusive of taxes.

[6] The applicant claims costs of $7,500. The Gambazzi Group says the applicant should get no costs. I do not agree. The applicant is an active participant in the claims hearing to consider the claim of the Gambazzi Group. Considering the factors in rule 57.01 and what a reasonable fee should be, I assess the applicant’s costs at $7,500.

[7] The costs are to be paid within 30 days.

Newbould J.

Date: November 4, 2015