Thursday, October 15, 2009

Costs against a non-party

Yesterday’s brief Court of Appeal decision in 1730960 Ontario Ltd. (Re) , 2009 ONCA 720 contains the interesting observation that costs against non-parties are very rarely awarded:

 

Cost awards against non-parties always involve the exceptional exercise of judicial discretion.  Absent fraud, abuse of the courts process in general and the bankruptcy process in particular to serve a collateral purpose or similar wrongdoing, there is no basis for looking behind a moving party’s corporate legal personality to award costs against its parent. 

 

The passage may be a useful reference when costs are sought against strangers to a litigation.

 

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