Ontario Civil

Civil Procedure

Applicant awarded $35,387.63 as respondents sought to increase applicant’s legal costs

Applicant sold business publishing magazine to respondent company. Individual respondent provided most of acquisition funding. Part of purchase plan was deferred and respondent company executed general subordinated security agreement in favour of applicant to secure deferred payment. Applicant executed subordination agreement with respondents that provided that respondent company had borrowed money from individual respondent and applicant agreed to subordinate payment of deferred payment to respondent company’s obligations to individual respondent. Respondent company did not pay deferred payment. Applicant made requests for information from respondents, which they ignored. Applicant brought application seeking several kinds of relief. Order was made for respondents to satisfy undertakings. Applicant applied for costs. Application granted. Applicant made legitimate request for information from respondents, which they ignored. Respondents’ refusal to provide information was done as stall tactic. Respondents ignored legal obligations to disclose requested information and they sought to increase applicant’s legal costs. Respondents’ conduct was reprehensible and warranted award of substantial indemnity costs. Applicant was awarded costs of $35,387.63.

Markplan Inc. v. Magazine Acquisition Corp. (Mar. 18, 2014, Ont. S.C.J. [Commercial List], D.M. Brown J., File No. CV-13-10315-00CL) 238 A.C.W.S. (3d) 559.

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