Court File and Parties

Court File No.: BK-19-02561274-0033 (Ottawa) Date: 2025-09-10 Superior Court of Justice - Ontario

Re: The Bankruptcy of Andrew Clifford Maracle III

Before: Mew J.

Counsel:

• Greg Roberts, for Glenn Bogue (Moving Party)
• Ian J. Collins, for Andrew Clifford Maracle III (Responding Party)

Heard: 10 September 2025 at Ottawa (in writing)

Endorsement

[1] This is the latest in a series of security for costs applications brought by Glenn Bogue in relation to pending motions brought by Andrew Clifford Maracle III, in this and related proceedings: Maracle v. Maracle, Court File No. CV-13-00000284-00 (Belleville), Bogue v. Maracle, Court File No. CV-19-00000077-00 (Belleville), and Gram v. Canada, Court File No. CV-23-00000136-00 (Belleville).

[2] The history of the disputes between the parties is set out in the court's decision in Bogue v. Maracle, 2024 ONSC 1964. Suffice it to say that it is both lengthy and ongoing.

[3] The following motions are scheduled to be heard in Belleville on 3 October 2025:

a. A motion brought by Andrew Clifford Maracle III in the bankruptcy of Andrew Clifford Maracle III seeking orders:

i. that the approved claim of Andrew Clifford Maracle III in the amount of $1,395,636.84 be paid out to the credit of Mr. Maracle III;

ii. declaring that the solicitor's lien of Glenn Bogue cannot take precedence over the approved claim of Andrew Clifford Maracle III; and

iii. that the levy imposed by the Superintendent of Bankruptcy in the amount of $55,441.91 deducted from the approved claim of Andrew Clifford Maracle III be cancelled and deleted.

b. A motion brought by Glenn Bogue in the bankruptcy of Andrew Clifford Maracle III and the other related proceedings for orders:

i. declaring that Mr. Bogue is a secured creditor giving him a priority over all other creditors, including other secured creditors, of Andrew Clifford Maracle III in the bankruptcy proceeds currently being held by Schwartz Levitsky Feldman Inc. as trustee;

ii. amending the court's judgment of 4 April 2024 to add pre-judgment interest; and

iii. pursuant to sections 38(1) and/or 243(1)(c) of the Bankruptcy and Insolvency Act, assigning to Mr. Bogue the right, title and interest in the prosecution of Court File No. CV-13-0284-00 from Schwartz Levitsky Feldman Inc. in its capacity as court appointed receiver for Andrew Clifford Maracle III.

[4] The grounds stated for Mr. Bogue's security for costs motion are that:

a. There are outstanding unpaid costs awards against Mr. Maracle III in this and its related proceedings;

b. Mr. Maracle III has insufficient assets in Ontario (situated off a reserve and subject to execution by Mr. Bogue) to pay the costs of the motion; and

c. There is good reason to believe that Mr. Maracle III's motion is frivolous and vexatious.

[5] Rule 56.01 of the Rules of Civil Procedure, R.R.O. 1990, Reg. 194, provides that the court may order security for costs where it appears that, inter alia:

a. a defendant or respondent has an order against the plaintiff or applicant for costs in the same or another proceeding that remain unpaid in whole or in part; or

b. there is good reason to believe that the action or application is frivolous and vexatious and that the plaintiff or applicant has insufficient assets in Ontario to pay the costs of the defendant or respondent.

[6] The court has jurisdiction to order security for costs in a bankruptcy proceeding: Di Paola (Re) (2006), 84 O.R. (3d) 554, 26 C.B.R. (5th) 133, 37 C.P.C. (6th) 286.

[7] It is not disputed that there are outstanding costs awards that have not been paid by Mr. Maracle III, namely:

a. $19,482.33 payable to Schwartz Levitsky Feldman Inc. in its capacity as court appointed receiver for Andrew Clifford Maracle III, as ordered by the court on 28 May 2024;

b. $7,500 payable to Mr. Bogue, as ordered by the court on 13 August 2025; and

c. $12,500 payable to Mr. Bogue, as ordered by the court on 14 August 2025.

[8] The total amount of unpaid costs owed by Mr. Maracle III, including accumulated interest on the costs owing to Schwartz Levitsky Feldman Inc., stood at $41,186.10 as of 27 August 2025.

[9] The recent history of this and its related proceedings discloses that Mr. Maracle III has repeatedly failed to pay costs awards made against him unless and until he is forced to either post security for costs or pay outstanding costs awards if he wants to take further steps to advance his own interests in the litigation.

[10] Furthermore, while Mr. Maracle III has previously taken the position that he has insufficient assets in Ontario to pay costs, he has always managed to provide security for costs, or to pay outstanding costs awards, when required to do so as a term of continuing with a motion, application or appeal.

[11] On the issue of whether Mr. Maracle III's motion is frivolous, vexatious or an abuse of process, I agree with Mr. Maracle III, who observes that his motion (and the corresponding motion brought by Mr. Bogue) represents the culmination of the parties' ongoing dispute about the competing claims of Mr. Maracle III, Mr. Bogue and the receiver, to the funds being held by the trustee in bankruptcy.

[12] Mr. Bogue effectively asks me to evaluate the arguments raised by Mr. Maracle III relating to those claims now.

[13] I decline to do so, other than to say that I am satisfied that Mr. Maracle III has advanced arguments which deserve to be fully considered on their merits.

[14] What is apparent, however, is that Mr. Maracle III will, unless the court makes an order requiring him to do otherwise, go into the motion owing Mr. Bogue and the receiver over $40,000 in unpaid costs.

[15] Although the receiver has not moved for security for costs, as Mr. Bogue points out, the receiver's legal fees will reduce the funds that he is entitled to under the receivership order previously made by this court. I therefore accept the premise that Mr. Bogue has a direct interest in having Mr. Maracle III discharge his costs obligations to the receiver.

[16] Accordingly, while I decline to order that Mr. Maracle III must provide security for costs of his pending motion, if he wants his motion to be heard, he must pay the outstanding costs awards in favour of the receiver and Mr. Bogue by no later than 22nd September 2025 as follows (using the amounts outstanding as of 27 August 2025):

a. $20,000 to Glenn Bogue payable to Greg Roberts Professional Corporation in trust;

b. $21,186.10 to Schwartz Levitsky Feldman Inc. in its capacity as court appointed receiver payable to Paliare Roland Rosenberg Rothstein LLP in trust.

[17] Failure to pay these costs will result in the automatic dismissal of Mr. Maracle III's motion.

[18] Mr. Bogue has enjoyed partial success on this motion. I fix his costs of the motion in the amount of $2,500, payable within 30 days.

Mew J.

Date: 10 September 2025