Susan J. Kushneryk

Following the dismissal of the appellant's appeal regarding the right of limited partners to vote on the election of a new general partner, the parties were unable to agree on costs.

The Court of Appeal fixed costs on a partial indemnity basis, awarding $17,000 to Chalmers, $8,000 to the liquidator, and $5,000 to the respondent, plus disbursements and GST, all payable by the appellant.

The appellant appealed an order allowing two limited partners to vote on the election of a new general partner for a limited partnership.

The appellant argued the limited partners were affiliated with and not dealing at arms length with the manager, and thus disqualified from voting under the partnership agreements.

The Court of Appeal dismissed the appeal, upholding the motion judge's finding that there was no direct or indirect control establishing affiliation, and that the parties were dealing at arms length.