T. O’Sullivan

The plaintiff brought a motion to reinstate a professional negligence action that had been administratively dismissed and dormant for over two years.

The defendants brought a cross-motion to dismiss the action for delay under Rule 48.14.

The court found that although there was a two-year unexplained delay, the defendants suffered no non-compensable prejudice and had not demonstrated any urgency in moving the case along.

The court allowed the plaintiff's motion, reinstated the action, and dismissed the defendants' cross-motion.

The moving party brought a motion under Rule 57.07 of the Rules of Civil Procedure seeking to hold opposing counsel personally liable for litigation costs allegedly caused by misconduct, including advancing false evidence, suppressing documents, and encouraging clients to give perjured testimony.

The court conducted a detailed review of the history of the litigation and the governing principles for imposing personal cost liability on counsel.

While the court found that counsel had made some serious litigation errors, including failing to properly list privileged documents in an affidavit of documents and mishandling document preservation, it held that the conduct did not cause costs to be incurred without reasonable cause within the meaning of Rule 57.07.

The court emphasized the adversarial nature of civil litigation, the extreme caution required before awarding costs personally against lawyers, and the availability of procedural remedies to address discovery issues.

The motion was dismissed.

In the context of ongoing inspection, receivership, and bankruptcy proceedings involving multiple corporations and a charitable foundation, counsel for the foundation sought a suspension of all proceedings pending determination of a contempt motion brought by the receiver against the foundation’s lawyer.

The moving party argued that the contempt allegation created a professional conflict of interest that would impair counsel’s ability to continue representing the client.

The receiver amended its motion to remove the requested contempt remedy against counsel, while reserving the right to bring such a motion in the future.

The court held that because the contempt relief against counsel had been removed, there was no present basis to suspend the proceedings.

Potential future contempt proceedings were insufficient to justify delaying the matters.

On a Commercial List motion, the moving party sought an order under Rule 57.07 of the Rules of Civil Procedure requiring a former solicitor for the opposing parties to personally pay costs of the action on a substantial indemnity basis.

The hearing was scheduled to proceed but the respondent sought an adjournment due to medical issues following recent cardiovascular surgery.

The court granted the adjournment but addressed the issue of costs thrown away resulting from the late notice of the health issue.

The court held that parties must promptly communicate medical conditions that may affect scheduled hearings to reduce unnecessary costs.

Partial indemnity costs of $10,000 were ordered payable by the respondent to compensate the moving party for preparation costs rendered useless by the last‑minute adjournment.

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.