Ontario Civil

Business Associations


Practice and procedure in proceedings involving corporations

Moving defendants entitled to benefit of off-set against costs entitlement of plaintiffs

Plaintiffs were investors in limited partnerships, trusts and preferred shares. Plaintiffs lost substantial amount of investments and collectively sought damages in range of $5.5 million. Defendants who were directors of corporations which acted as general partners for certain limited partnerships brought motions for summary judgment. Claims of oppression against moving defendants and claim that their decision to appoint receiver had negative impact on investments were dismissed, while other issues such as negligence and financial stewardship of corporations were to go to trial. Parties made submissions on costs. Plaintiffs awarded $100,000 in costs. Defendants sought outright dismissal of action, and to that extent were unsuccessful. Number of causes of action was reduced and allegation of fraud did not continue beyond pleadings stage. To that extent, moving defendants were entitled to benefit of off-set against costs entitlement of plaintiffs. Defendants were to receive credit of 25 per cent of costs they sought, as reduction of their costs obligation to plaintiffs on joint and several liability basis. Credit was quantified at $72,000. After applying credit, plaintiffs on four motions were collectively entitled to net costs in sum of $100,000 including fees, disbursements, taxes and for their costs submissions.
POOLE et al v. PHILLIPS et al (2017), 2017 CarswellOnt 14907, 2017 ONSC 5676, Wolf Tausendfreund J. (Ont. S.C.J.); additional reasons (2017), 2017 CarswellOnt 1098, 2016 ONSC 8181, Wolf Tausendfreund J. (Ont. S.C.J.).


cover image


Subscribers get early and easy access to Law Times.

Law Times Poll

A Law Society of Ontario tribunal has ruled that a lawyer charged with offences related to child pornography should not be subject to an interlocutory suspension. Do you agree with this decision?