The plaintiff real estate brokerage commenced an action against the defendants, including a court-appointed receiver, for unpaid commissions related to the sale of a property.
The receiver and the debtor company moved to stay the action pursuant to the receivership Appointment Order, while the plaintiff moved to lift the stay.
The court found that the plaintiff's claims for breach of contract and breach of fiduciary duty, based on an email exchange regarding a draft commission agreement, were not frivolous or vexatious.
Balancing the relative prejudice to the parties, the court lifted the stay of proceedings to allow the plaintiff's action to continue.
Preliminary motions regarding the evidentiary record were decided in favour of the receiver.