Simon Dugas

The plaintiff obtained a default judgment against the defendant corporation for unpaid electricity invoices.

The defendant's sole director repeatedly failed to attend examinations in aid of execution and failed to produce court-ordered financial documents, resulting in a finding of civil contempt.

At the sentencing phase, the court ordered the director to personally fulfill undertakings, produce the required documents, and pay $37,836.90 in substantial indemnity costs jointly and severally with the corporation, noting that the director's actions thwarted the plaintiff's enforcement efforts.

This appeal concerned a dispute over indemnification and escrow provisions in an asset purchase agreement, specifically whether an amendment to a Notice of Application was statute-barred.

The Court of Appeal dismissed the appeal, affirming the application judge's decision that the amendment was not statute-barred, despite an error in the application of s. 16(1)(a) of the Limitations Act, as it did not introduce a new cause of action or remedy.

The court also upheld the interpretation of the Escrow Agreement regarding notice delivery, finding that registered mail was not a valid method of delivery.

The case involves a dispute between two brothers, Nickolas and George Georghiades, co-founders of a real estate business (LP).

Nickolas brought a motion seeking the appointment of an auditor, inspector, and monitor, and direct access to business information, alleging oppression and misappropriation of funds by George.

The court found a prima facie case of oppression due to George's control over information and the brothers' dysfunctional relationship.

The court ordered the appointment of an independent Monitor with a prescribed mandate to observe and report on the business's financial activities, in addition to an agreed-upon audit.

The request for a separate inspector/investigator and direct access was declined at this stage, with the possibility of revisiting if the Monitor's reports indicate ongoing difficulties.

No costs were awarded.

The applicants, SpaceBridge, sought declarations that an indemnity claim made by the respondents, Baylin, under an asset purchase agreement (APA) and related escrow agreement was invalidly delivered, and for the return of $1,826,512 paid out of an escrow fund.

The core dispute revolved around the interpretation of contractual notice provisions, specifically whether delivery by registered mail was a permitted method under the Escrow Agreement, which had different notice modalities than the APA.

The court found that registered mail was not a valid mode of delivery under the Escrow Agreement, meaning Baylin's claim certificate was not properly delivered, and thus SpaceBridge's 30-day objection period never commenced.

Consequently, the payment from the escrow fund was improper, and Baylin was ordered to return the funds.

The court also dismissed Baylin's arguments regarding limitation periods and estoppel, but clarified that the ruling did not invalidate Baylin's underlying indemnity claim under the APA, which could still be pursued through litigation.