Shaun F. Laubman

Following the dismissal of the foreign tobacco defendants' jurisdictional appeals, the Court of Appeal determined the costs of the appeals.

The appellants argued that costs should be capped at $100,000, asserting that the Crown treated the five appeals as one by filing a common factum.

The Court rejected this argument, finding no $100,000 ceiling exists for costs awards in the Court of Appeal.

Given the complexity, the $50 billion stakes, and the necessity of responding to five separate appeals, the Court fixed the Crown's partial indemnity costs at $237,332.50, apportioned between the BAT and RJR appellants.

The defendants moved for summary judgment dismissing claims against several individual defendants on the basis that all contractual dealings were with a corporate entity operating under a business name.

The central issue was whether the plaintiff knew or ought reasonably to have known it was contracting with a corporation rather than individuals.

The court reviewed evidence including cheques, website references, and business name registration and applied the summary judgment framework under Rule 20.04 of the Rules of Civil Procedure.

The court held that the evidence did not establish that the plaintiff had sufficient notice that it was dealing with a corporation, leaving a genuine issue requiring a trial.

However, the claim against one individual defendant was dismissed for lack of any evidence of involvement in the transactions.

Following a successful oppression action involving breach of fiduciary duty, enforceability of a property management agreement, and corporate share ownership, the plaintiff sought substantial indemnity costs relying in part on a Rule 49 settlement offer.

The defendants argued success at trial was divided and that no costs or reduced costs should be awarded.

The court found the plaintiff achieved substantial success, particularly on the oppression and fiduciary breach issues, and had effectively beaten portions of the Rule 49 offer.

The court held that substantial indemnity costs were appropriate for certain issues after the offer date and partial indemnity for others.

Considering proportionality and the absence of a competing bill of costs from the defendant, the court fixed total costs at $145,000 inclusive.

The plaintiff and defendants entered into an Option Agreement for the purchase and sale of a retro-fitted self-storage facility.

The plaintiff exercised a 'Put' option requiring the defendants to purchase the property at an appraised value.

The defendants refused to close, alleging the appraisal contained a manifest error and that the roof was defective, breaching a warranty.

The court found no manifest error in the appraisal and that the roof issues were maintenance problems which the defendants, as property managers, had failed to address.

The court granted specific performance of the sale at the appraised value of $7.3 million and awarded the plaintiff $728,080.05 in carrying costs.

The plaintiff and defendants were friends who entered into a real estate joint venture through a corporation.

The plaintiff provided the financing, while the defendants were to manage the property.

After one defendant defaulted and was removed, the remaining defendant, acting as sole director, breached his fiduciary duties by hiding corporate income, falsifying records, and paying himself exorbitant property management fees against the plaintiff's objections.

The court found the defendant's conduct oppressive, determined the parties' respective shareholdings based on funds advanced, ordered the repayment of excess management fees, and imposed a shotgun buy/sell mechanism to effect a corporate divorce.

Ontario sued foreign and domestic tobacco manufacturers under the Tobacco Damages and Health Care Costs Recovery Act, 2009 to recover health care costs.

Six foreign defendants brought a motion to stay or dismiss the action for lack of jurisdiction, which was dismissed.

The foreign defendants appealed.

The Court of Appeal dismissed the appeal, finding that the statutory claim was analogous to a tort committed in Ontario, establishing a presumptive connecting factor under the Van Breda framework.

The Court also upheld the motion judge's findings that Ontario established a good arguable case and affirmed the costs award.

The defendants brought motions for summary judgment to dismiss the plaintiffs' action arising from a shotgun buy-sell offer in a partnership dispute.

The plaintiffs claimed the offer was invalid, and alleged breach of contract, breach of fiduciary duty, and oppression.

The court found that the shotgun buy-sell offer was valid and complied with the partnership agreement.

The court also dismissed the claims for breach of fiduciary duty and oppression, finding that the defendants were entitled to exercise their contractual rights.

However, the court directed a trial on three specific breach of contract issues relating to closing arrangements and the calculation of net earnings.

The moving party sought advice and directions under a court‑approved CCAA Plan of Arrangement governing the restructuring of Canada’s third‑party asset‑backed commercial paper market.

The administrator argued the Plan and related agreements permitted it to terminate credit default swap transactions and fund termination payments from collateral without dealer consent below specified thresholds.

A dealer noteholder opposed, asserting the agreements required negotiated consent where collateral beyond a specific trade would be affected.

The court held that the contractual language did not eliminate consent requirements and that the court’s broad CCAA jurisdiction could not be used to effectively rewrite the negotiated agreements.

The request for declaratory or corrective relief was refused.

Following dismissal of jurisdiction motions brought by several foreign tobacco companies in a health care cost recovery action, the court determined costs.

The unsuccessful moving parties argued that earlier evidentiary and procedural steps constituted separate proceedings and sought substantial costs for those steps.

The court rejected that characterization, holding that all preliminary steps formed part of the overall jurisdiction challenge and that distributive costs awards based on success on individual steps should be avoided.

Applying Rule 57.01 factors and general costs principles, the court found the responding party was the successful party and entitled to costs, subject to reductions reflecting partial success on certain evidentiary and motion issues.

The court awarded partial indemnity costs of $425,000 plus disbursements, allocating liability between two groups of moving defendants.

The Crown brought an action under the Tobacco Damages and Health Care Costs Recovery Act against several domestic and foreign tobacco companies, claiming $50 billion for health care costs related to tobacco disease.

Six foreign defendants brought motions to set aside service ex juris and stay or dismiss the action, arguing the Ontario court lacked jurisdiction simpliciter.

The court dismissed the motions, finding that the Crown had established a good arguable case that the foreign defendants conspired and acted in concert to commit tobacco-related wrongs, establishing a real and substantial connection to Ontario.

The plaintiff sought leave to appeal an order of a motions judge that set aside a Master's order requiring affiants to re-attend cross-examinations to answer refusals.

The motions judge had found that the Master erred in principle by improperly applying the principle of proportionality to enlarge the scope of cross-examination beyond what is permissible.

The Divisional Court denied leave to appeal, finding no conflicting decisions and no reason to doubt the correctness of the motions judge's order.