COURT FILE NO.: CV-21-00662656

DATE: 20210617

SUPERIOR COURT OF JUSTICE – ONTARIO

RE: KATRINA PRICE, in her capacity as Executor and Trustee of the Estate of MICHAEL JAMES PRICE Applicant

AND:

FARRUKH DAVID ROBSON, SABRINA YASMEEN ROBSON, KATRINA ROBSON also known as SHEENA ROBSON and JONATHAN ROBSON Respondents

BEFORE: Mr. Justice Chalmers

COUNSEL: D. Shiller and S Sennik for the Applicant

HEARD: By Writing

ENDORSEMENT

Overview

[1] The Applicant seeks an order to register and enforce the Certificate of Costs dated March 25, 2021 made by the Registrar of the Supreme Court of British Columbia. The Certificate of Costs was made in the action brought by Michael James Price against the Respondents in British Columbia; Court File No.: S149212 (the “BC Action”).

[2] The BC Action was tried over the course of several days in 2015 and 2016. On October 24, 2016, the BC court granted judgment to the Plaintiff (the “BC Judgment”) as follows:

a. The Respondents, 481530 B.C. Ltd. doing business as Micron Laboratories, 8577935 Canada Corporation and Farrukh David Robson, jointly and severally, to pay Mr. Price the amount of $203,745.89 and pre-judgment in the amount of $4,353.59 pursuant to the Court Order Interest Act;

b. The Respondents, Farrukh David Robson, Sabrina Yasmeen Robson, Katrina Robson, also known as Sheena Robson and Jonathan Robson, jointly and severally, to pay to Mr. Price the amount of $100,000 for civil conspiracy and pre-judgment interest in the amount of $3,057.50;

c. in the event the parties are unable to agree on costs, either party may file a request to speak to costs within three months of the date of this order.

[3] On February 24, 2017, the BC Judgment was varied to include a further order that 481530 B.C. Ltd. doing business as Micron Laboratories, 8577935 Canada Corporation and Farrukh David Robson, pay to Mr. Price the additional amount of $80,856.44 and pre-judgment interest in the amount of $2,555.09 pursuant to the Court Order Interest Act. The Ontario Superior Court registered and entered both the BC Judgment dated October 24, 2016 and the BC Judgment as varied on February 24, 2017.

[4] The parties failed to agree on costs. Mr. Price sought an order for Special Costs. On June 26, 2017, the Supreme Court of British Columbia found that the Respondents, Farrukh David Robson, Sabrina Yasmeen Robson and Katrina Robson, had engaged in reprehensible conduct and an award of Special Costs was justified. On March 27, 2019, the Supreme Court of British Columbia issued an order that the Respondents, Farrukh David Robson, Sabrina Yasmeen Robson and Katrina Robson are to pay Mr. Price’s costs as Special Costs, subject to assessment by the Registrar. The Respondents, Katrina Robson and Sabrina Robson sought leave to appeal the costs order. The BC Court of Appeal denied leave. In its reasons released on December 1, 2017, the Court found that there an evidentiary basis for the Special Costs award and there was no reasonable prospect of the appeal succeeding.

[5] By Certificate of Costs dated March 18, 2021, (the “BC Certificate of Costs”) the Registrar awarded costs against the Respondents as follows:

a. as against the Respondents, Farrukh David Robson, Sabrina Yasmeen Robson, Katrina Robson also known as Sheena Robson, jointly and severally, the amount of $424,094.70;

b. as against the Respondents, Farrukh David Robson, Sabrina Yasmeen Robson, Katrina Robson also known as Sheena Robson and Jonathan Robson, jointly and severally, the amount of $350,324.34; and

c. as against the Respondents, Farrukh David Robson, Sabrina Yasmeen Robson, Katrina Robson also known as Sheena Robson and Jonathan Robson, jointly and severally, the amount of $3,449.60.

[6] The individual Respondents permanently reside in Ontario, and work and own assets in Ontario.

Analysis

[7] Pursuant to the Reciprocal Enforcement f Judgments Act, R.S.O. 1990, c.R.5, (the “Act”), the Applicant is permitted to register the BC Certificate of Costs in Ontario and enforce it as if it had been obtained in Ontario, without the need to start new lawsuit: s. 2(1). The Respondents were served with the claim in the BC Action, defended the action through to trial and submitted to the jurisdiction of the British Columbia court and therefore it is not necessary for the Applicant to provide notice to the Respondents of the Application to register the BC Certificate of Costs in Ontario: s. 2(2) and 2(3).

[8] Courts of one province are to give “full faith and credit” to the judgments made by a court in another province so long as that court has properly exercised jurisdiction in the action. The test for determining when the court of another province has jurisdiction, is whether there is a “real and substantial connection” between the court and the subject matter of the litigation: Morguard Investments Ltd. v. De Savoye, 1990 CanLII 29 (SCC).

[9] I am satisfied that the BC Courts had jurisdiction over the subject matter in this case. The action involved a dispute with respect to the management of a small company; 481530 C.C. Ltd., which operated a laser skin clinic in British Columbia. Mr. Price was a minority owner in the company. Mr. Price discovered that Mr. Robson and his family had been “skimming” from the company. Mr. Price offered to buy Mr. Robson’s shares. While the price of the shares was being negotiated, Mr. Price was dismissed from his employment.

[10] There is a real and substantial connection between the BC court and the subject matter of the litigation. The litigation involved a B.C. company, and actions which took place in that province. The Respondents attorned to the B.C. Court. I conclude that the B.C. Court properly had jurisdiction and its judgment should be recognized in Ontario.

[11] The Respondents have not established any applicable defences including that the judgment was obtained through fraud or that they were not afforded a process in accordance with Ontario’s minimum standards of fairness, or that the judgment was obtained on laws contrary to the fundamental morality of the Canadian legal system: Kovoussi v. Moos, 2015 ONCA 195, at para. 4.

[12] The BC Certificate of Costs is a final and binding order and is for a definite and ascertainable sum of money. The Respondents have not made any payments on the BC Certificate of Costs. To date, the entire judgment, plus post-judgment interest, remains outstanding.

[13] I am satisfied that the Applicant is entitled to an order registering and entering the BC Certificate of Costs in Ontario. I award costs of this Application fixed in the amount of $1,000 inclusive of counsel fee, disbursements and H.S.T.

[14] Order to go in accordance with the draft order filed and signed by me.

DATE: JUNE 17, 2021