Employee’s costs on partial indemnity scale exceeded CEO’s costs on substantial indemnity scale

Debtors and Creditors - Examination of Debtor - Practice and Procedure

Employer hired employee as chief revenue officer, but employer's parent company acted as first guarantor for unpaid and deferred salary and expenses . Employer's chief executive officer (CEO) agreed to be second guarantor when first guarantor experienced financial issues . Employee was dismissed due to financial issues . Employee successfully sued for breach of contract and was awarded damages for unpaid salary and unpaid expenses against both guarantors, plus contractual separation payment and unpaid vacation pay against first guarantor . CEO paid judgment as second guarantor . Employee conducted examination in aid of execution against non-party G, as debtor of first guarantor . Employee unsuccessfully brought motions to compel first guarantor and non-party to answer undertakings given at examination and for order that non-party D attend at examination in aid of execution . Employee unsuccessfully appealed . Issue arose as to costs. Employee was ordered to pay $6000 in costs . Fixing of costs was governed by Rule 57.01 of Rules of Civil Procedure . Given that employee’s costs on partial indemnity scale were greater than CEO’s costs on substantial indemnity scale, amount sought by CEO could not be said to exceed employee’s expectations.

Perry v. Mass Fidelity Inc. (2019), 2019 CarswellOnt 5723, 2019 ONSC 2378, E.M. Morgan J. (Ont. S.C.J.); additional reasons (2019), 2019 CarswellOnt 2295, 2019 ONSC 1134, E.M. Morgan J. (Ont. S.C.J.).

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