Case among siblings arose from marina business passed down from deceased parents
In an estate dispute involving siblings, the Ontario Court of Appeal ordered one brother to pay his sister $22,057.17 in appeal costs despite finding the estate solely liable for a loan from her and absolving him of liability.
In this case, the siblings were named Teddy, Julia, Richard, Irene, and Edmund. In 1963, their parents bought land in East Gwillimbury and built two marinas: Albert’s Marina and Sail’er Inn.
The father died in 1990, with his will passing half his interest in the marina business to Teddy. In 2010, following a dispute, Teddy sued his mother and his siblings except Julia.
In 2011, the mother made a will leaving the business to Richard and dividing the remainder of the estate among her children except Teddy. She designated Julia, Richard, and Irene as estate trustees. She died in 2012.
In 2014, Teddy settled his litigation for $485,000 and released all his claims to the business and the land with the marinas.
Richard took over the marina operations and registered the business in his own name. Julia and Irene loaned him $100,000 each to help settle Teddy’s lawsuit.
Julia applied to the Ontario Superior Court of Justice for directions. In June 2023, Justice Suzan Fraser ruled essentially in Julia’s favour and ordered Richard and Irene to pay her $104,722.39 in partial indemnity costs.
On appeal, Richard asked the appeal court to order a new hearing and set aside the cost award. He argued that the judge erred in determining the facts and costs, failed to weigh some evidence properly, and inappropriately exercised her discretion.
On Aug. 5, in Macpherson v. Wyszatko Estate, 2025 ONCA 576, the Court of Appeal for Ontario dismissed the appeal apart from varying the order’s first and second paragraphs to remove Richard’s personal liability.
The appeal court said the variance should reflect that only the estate was liable for repaying the loan, legal fees, and interest. The appeal court added that it would fix appeal costs after receiving written submissions if the parties could not agree.
As the appellants, Richard and Sail’er Inn submitted that:
The respondent sought a cost award of $30,000, all inclusive. She alleged that she was the successful party, given that the appeal court only minimally corrected the judge’s order and rejected the other appeal grounds.
On Oct. 8, in Macpherson v. Wyszatko Estate, 2025 ONCA 690, the Ontario Court of Appeal ordered both appellants, jointly and severally, to pay the respondent her fair and reasonable appeal costs fixed at $22,057.17, all inclusive.
The appeal court deemed the respondent successful on the appeal and entitled to her costs. The appeal court ruled that it should award partial indemnity costs because substantial indemnity costs were unwarranted.
The appeal court did not consider Irene liable for appeal costs because she did not act as a party to the appeal or meet the criteria for cost liability as a non-party.
