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Amex Electrical Ltd. v. 726934 Alberta Ltd. et al., 2014 ABQB 66

Document Cited authorities 57 Cited in 36 Precedent Map Related
Vincent
JudgeWakeling, J.
CourtCourt of Queen's Bench of Alberta (Canada)
Case DateJanuary 15, 2014
Citations2014 ABQB 66;(2014), 582 A.R. 304 (QB)

Amex Electrical Ltd. v. 726934 Alta. Ltd. (2014), 582 A.R. 304 (QB)

MLB headnote and full text

Temp. Cite: [2014] A.R. TBEd. FE.037

Amex Electrical Ltd. (respondent/plaintiff) v. 726934 Alberta Ltd., 99 Supermarket Ltd. and Minh Tran (applicants/defendants)

(0703 16543; 2014 ABQB 66)

Indexed As: Amex Electrical Ltd. v. 726934 Alberta Ltd. et al.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Wakeling, J.

January 30, 2014.

Summary:

The plaintiff corporation brought a contract action against the defendants. The defendants applied under s. 254 of the Business Corporations Act and rule 4.22 for an order that the plaintiff provided $50,000 security for costs. At issue was whether both s. 254 and rule 4.22 applied to the application, or whether only s. 254 applied.

The Alberta Court of Queen's Bench dismissed the application. Only s. 254 applied. The defendants failed to satisfy the court that the plaintiff, if unsuccessful, would be unable to pay any costs award. In any event, the court would not have exercised its discretion to order security for costs where the defendants failed to file the application at the earliest opportunity.

Practice - Topic 8107

Costs - Security for costs - General principles - Where plaintiff is corporation or association - The plaintiff corporation sued the defendants - The defendants applied for the plaintiff corporation to post security for costs - Section 254 of the Business Corporations Act provided that where a corporation was a plaintiff, and it appeared that the corporation would be unable to pay costs to a successful defendant, the court "may" order security for costs - Rule 4.22 also empowered a court to award security for costs if the plaintiff was unable to pay any costs award and after consideration of other matters (eg., likelihood of enforcing judgment, merits of the action, prejudice to ability to continue action, any other matters considered appropriate) - The Alberta Court of Queen's Bench dismissed the application - Only s. 254 applied - The defendants failed to satisfy the court that the plaintiff, if unsuccessful, would be unable to pay any costs award - The plaintiff had sufficient exigible assets in Alberta to pay a costs award - In any event, the court would not have exercised its discretion to order security for costs where the defendants failed to file the application at the earliest opportunity - The defendants waited until the eve of the trial, six years after the action was commenced, to apply for security for costs.

Practice - Topic 8123

Costs - Security for costs - Application - Time for - [See Practice - Topic 8107 ].

Cases Noticed:

475878 Alberta Ltd. et al. v. Help-U-Sell Inc. et al. (2001), 294 A.R. 151; 2001 ABQB 517, refd to. [para. 41].

Pray v. Edie (1786), 99 E.R. 1087 (K.B.), refd to. [para. 41].

Alberta (Treasury Branches) v. 1401057 Alberta Ltd. (2013), 579 A.R. 152; 2013 ABQB 748, refd to. [para. 41].

Travellers Casualty and Surety Co. of America v. Pacific Gas and Electric Co. (2007), 549 U.S. 443, refd to. [para. 41].

Keary Developments Ltd. v. Tarmac Construction Ltd., [1995] 3 All E.R. 534 (C.A.), refd to. [para. 42].

Singh v. Dura (1988), 86 A.R. 268; 51 D.L.R.(4th) 529 (C.A.), refd to. [para. 42].

Crothers v. Simpson Sears Ltd. - see Singh v. Dura.

Pearson v. Naydler, [1977] 3 All E.R. 531 (Ch.), refd to. [para. 42].

Wall v. 679927 Ontario Ltd. et al. (1999), 176 N.S.R.(2d) 96; 538 A.P.R. 96; 29 C.P.C.(4th) 204 (C.A.), refd to. [para. 43].

Wall v. Horn Abbot Ltd. - see Wall v. 679927 Ontario Ltd. et al.

Bronson et al. v. Hewitt et al., [2007] B.C.T.C. Uned. G48; 53 C.P.C.(6th) 165 (S.C.), refd to. [para. 43].

Cowell v. Taylor (1885), 33 Ch. Div. 34 (C.A.), refd to. [para. 43].

Fitzgerald v. Whitmore (1786), 99 E.R. 1140 (K.B.), refd to. [para. 45].

Winthrop v. Royal Exchange Assurance Co. (1755), 21 E.R. 277 (Ch.), refd to. [para. 45].

Billington (J.H.) Ltd. v. Billington, [1907] 2 K.B. 106, refd to. [para. 45].

Smith, Re; Bain v. Bain (1896), 75 L.T.R. 46 (C.A.), refd to. [para. 47].

Australian Steamship Co. v. Fleming (1858), 70 E.R. 170 (Ch.), refd to. [para. 52, footnote 4].

Imperial Bank of China, India and Japan v. Bank of Hindustan, China and Japan (1866), L.R. 1 Ch. 437 (C.A.), refd to. [para. 52, footnote 4].

Xpress Lube & Car Wash Ltd. v. Gill et al., [2011] A.R. Uned. 517; 2011 ABQB 457, refd to. [para. 54].

Parkinson (Sir Lindsay) & Co. v. Triplan Ltd., [1973] 1 Q.B. 609 (C.A.), refd to. [para. 55, footnote 5].

Ritter et al. v. Hoag et al. (2003), 334 A.R. 290; 2003 ABQB 229, refd to. [para. 55].

United Paint and Coating Canada Ltd. v. St. Laurent and Tower Paint and Laboratories Ltd. (1980), 27 A.R. 217; 13 Alta. L.R.(2d) 134 (Q.B. Master), refd to. [para. 55].

Boros v. University Hospitals Board (1985), 44 Sask.R. 231; 24 D.L.R.(4th) 628 (C.A.), refd to. [para. 62].

Canada (Procureur général) v. Alliance de la Fonction publique du Canada, [1991] 1 S.C.R. 614; 123 N.R. 161, refd to. [para. 63].

Public Service Alliance of Canada v. Canada (Attorney General) and Econosult Inc. - see Canada (Procureur général) v. Alliance de la Fonction publique du Canada.

Bell ExpressVu Limited Partnership v. Rex et al., [2002] 2 S.C.R. 559; 287 N.R. 248; 166 B.C.A.C. 1; 271 W.A.C. 1, refd to. [para. 63].

R. v. Ulybel Enterprises Ltd., [2001] 2 S.C.R. 867; 275 N.R. 201; 206 Nfld. & P.E.I.R. 304; 618 A.P.R. 304, refd to. [para. 63].

Murphy v. Welsh, [1993] 2 S.C.R. 1069; 156 N.R. 263; 65 O.A.C. 103, addendum (1993), 157 N.R. 372; 66 O.A.C. 240 (S.C.C.), refd to. [para. 63].

Stoddard v. Watson - see Murphy v. Welsh.

Maurice v. Priel, McKeague and Walker, [1989] 1 S.C.R. 1023; 96 N.R. 178; 77 Sask.R. 22, refd to. [para. 63].

Dominion Brewery Ltd. v. Foster (1897), 77 L.T.R. 507 (C.A.), refd to. [para. 64].

Autoweld Systems Ltd. v. CRC- Evans Pipeline International Inc. et al. (2011), 515 A.R. 6; 532 W.A.C. 6; 2011 ABCA 243, refd to. [para. 68].

Mac's Convenience Stores Inc. v. 1144317 Alberta Ltd. et al., [2013] A.R. Uned. 215; 2013 ABQB 138 (Master), refd to. [para. 68].

590863 Alberta Ltd. v. Deloitte and Touche Inc. et al. (2012), 540 A.R. 1; 2012 ABQB 98 (Master), refd to. [para. 68].

Sprung Enviroponics Ltd. v. Calgary (City) and Imperial Oil Ltd. (1990), 103 A.R. 131 (C.A.), refd to. [para. 70].

BJ Graphics Holdings Co., Ponto and MacIntosh v. Canadian Imperial Bank of Commerce and Van Beek (1981), 36 A.R. 442 (Q.B. Master), refd to. [para. 70].

Booth Construction Ltd. et al. v. Estabrook Construction Ltd. et al. (1987), 83 A.R. 333 (Q.B.), refd to. [para. 70].

JSM International Ltd. and Kohut v. North Sky Trading Inc. (1991), 122 A.R. 385 (Q.B. Master), refd to. [para. 70].

Rundle Maintenance Ltd. v. Stevens (1977), 4 A.R. 321 (Dist. Ct.), refd to. [para. 70].

Brown Investment Co. v. Hulbert, [1923] W.W.R. 1132 (Alta. C.A.), refd to. [para. 70].

Attila Dogan Construction and Installation Co. v. AMEC Americas Ltd. et al. (2011), 504 A.R. 295; 2011 ABQB 175, refd to. [para. 74].

Calmont Leasing Ltd. v. 32262 B.C. Ltd. (2002), 317 A.R. 331; 284 W.A.C. 331; 2002 ABCA 290, refd to. [para. 74].

Arhum & Huzaifa Enterprises Ltd. et al. v. 1231993 Alberta Ltd. et al. (2013), 563 A.R. 335; 2013 ABQB 333, refd to. [para. 74].

Launer v. Sommerfeld (1964), 48 W.W.R.(N.S.) 224 (B.C.S.C.), refd to. [para. 74].

Penny v. Penny, [1996] 2 All E.R. 329 (C.A.), refd to. [para. 74].

Wall v. Wells, [1926] 4 D.L.R. 799 (B.C.C.A.), refd to. [para. 74].

Tasker v. Moore (1914), 5 W.W.R. 1020 (Alta. S.C.), refd to. [para. 74].

International Railway v. Niagara Parks Commission, [1939] O.W.N. 516 (Master), refd to. [para. 74].

Costa Rica v. Erlanger (1876), 3 Ch. D. 62 (C.A.), refd to. [para. 74].

Bonnie v. Aero Tool Works Ltd., [1950] O.W.N. 785 (H.C.), refd to. [para. 74].

Massey v. Allan (1879), 12 Ch. D. 807, refd to. [para. 74].

Sykes v. Sacerdoti (1885), 15 Q.B.D. 423 (C.A.), refd to. [para. 74].

Emerson v. Clark (1921), 60 D.L.R. 141 (N.B.C.A.), refd to. [para. 74].

Clough, In re (1887), 35 Ch. D. 7 (C.A.), refd to. [para. 74].

Pooley's Trustee v. Whetham (1884), 33 Ch. D. 76 (C.A.), refd to. [para. 74].

Shea's Hotel Sales Ltd. v. Dell Hotel Ltd. (1967), 60 W.W.R.(N.S.) 380 (B.C.S.C.), refd to. [para. 75].

Hills (Frank) Logging Co. v. Hoeya Sound Logging Ltd., [1971] 2 W.W.R. 471 (B.C.C.A.), refd to. [para. 75].

Branco v. American Home Assurance Co. et al. (2012), 392 Sask.R. 90; 2012 SKQB 88, refd to. [para. 75].

Laspo Control Systems Inc. v. Beck Technologies Inc. et al. (2007), 309 Sask.R. 24 (Q.B.), refd to. [para. 75].

VCI Industrial Contractors Inc. v. Regina (City) et al. (2004), 256 Sask.R. 153 (Q.B.), refd to. [para. 75].

Hall v. Harmony Hills Recreation Inc. (1990), 463 N.W.2d 254 (Mich. Ct. App.), refd to. [para. 75].

Ellis v. Stewart (1887), 35 Ch. D. 459 (C.A.), refd to. [para. 75].

Tordoff v. Canada Life Assurance Co. (1985), 64 B.C.L.R. 46 (S.C.), refd to. [para. 75].

Neck v. Taylor, [1893] 1 Q.B. 560 (C.A.), refd to. [para. 75].

Pechiney Metal Service (Canada) Inc. v. Suncor Inc. et al. (1997), 202 A.R. 51 (Q.B.), refd to. [para. 75].

Athabasca Realty Co. v. LaFontaine and LaFontaine (1981), 30 A.R. 581 (Q.B. Master), refd to. [para. 75].

Balfour v. Pierce, [1922] 2 W.W.R. 1327 (Alta. S.C.), refd to. [para. 75].

Mapleson v. Masini (1879), 5 Q.B.D. 144 (H.C.), refd to. [para. 75].

Tracer Industries Inc. v. Shell Canada Ltd. et al. (2004), 364 A.R. 186; 2004 ABQB 484, refd to. [para. 75].

Wilkings v. Velocity Group Inc. (2008), 235 O.A.C. 30; 55 C.P.C.(6th) 321 (Div. Ct.), refd to. [para. 75].

Procon Ltd. v. Provincial Building Ltd., [1984] 1 W.L.R. 557 (C.A.), refd to. [para. 81].

Maatschappij Voor Fondsenbezit v. Shell Transport and Trading Co., [1923] 2 K.B. 166 (C.A.), refd to. [para. 86].

Statutes Noticed:

Business Corporations Act, R.S.A. 2000, c. B-9, sect. 254 [para. 8].

Rules of Court (Alta.), rule 4.22 [para. 11].

Authors and Works Noticed:

Abrams, Linda, and McGuinness, Kevin, Canadian Civil Procedure Law (2nd Ed. 2010), pp. 993 [para. 41]; 994 [para. 78]; 1477 [para. 71].

Coté, Pierre-André, The Interpretation of Legislation in Canada (4th Ed. 2011), p. 380 [para. 62].

Gliedman, John, Access to Federal Courts and Security for Costs and Fees (2000), 74 St. John's L. Rev. 953, pp. 954, fn. 4 [para. 49]; 957 [para. 45].

Goodhart, Arthur, Costs (1929), 38 Yale L.J. 849, pp. 856 [para. 41]; 875, fn. 107 [para. 46].

Morgan, George, and Wurtzburg, Edward, A Treatise on the Law of Costs in the Chancery Division of the High Court of Justice (2nd Ed. 1882), p. 4-15 [para. 47].

Orkin, Mark M., The Law of Costs (2nd Ed.) (2013 Looseleaf Ed., Release 40), vol. 2, p. 5-26.1 [para. 75].

Scalia, Antonin, and Garner, Bryan, Reading Law: The Interpretation of Legal Texts (2012), p. 252 [para. 61].

Stevenson, William A., and Côté, Jean E., Civil Procedure Guide (1992), vol. 1, p. 1365 [para. 52, footnote 4].

Sullivan, Ruth, Sullivan on the Construction of Statutes (5th Ed. 2008), p. 412 [para. 61].

Counsel:

D.K. Fraser (D.K. Fraser Law), for the applicants;

T.A. Kelly (Snyder & Associates LLP), for the respondent.

This application was heard on January 15, 2014, before Wakeling, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following judgment on January 30, 2014.

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35 practice notes
  • R. v. Ryan (G.R.), (2015) 607 A.R. 47
    • Canada
    • Court of Appeal (Alberta)
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    ...388; 89 W.A.C. 388 (C.A.), refd to. [para. 100, footnote 53]. Amex Electrical Ltd. v. 726934 Alberta Ltd. et al., [2014] 8 W.W.R. 581; 582 A.R. 304; 2014 ABQB 66, refd to. [para. 100, footnote 54]. R. v. Szczerbaniwicz (G.), [2010] 1 S.C.R. 455; 401 N.R. 47, refd to. [para. 100, footnote 54......
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    ...of due process in the operation of this system”). [47] 401 U.S. 371 , 374 (1971). [48] Amex Electrical Ltd. v. 726934 Alberta Ltd., 2014 ABQB 66, ¶ 43; [2014] 8 W.W.R. 581 , 595 (“Our community funds the third branch of government to ensure that disputes are resolved in accordance with th......
  • Ursa Ventures Ltd. v. Edmonton (City), 2016 ABCA 135
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    ...("A thing that substantially advances an action must be substantial or solid"). 100. See Amex Electrical Ltd. v. 726934 Alberta Ltd. , 2014 ABQB 66, ¶ 70; [2014] 8 W.W.R. 581, 604-05 (the Court gave different meanings to r. 4.22 of the new Alberta Rules of Court and R. 593(1)(i) of the old ......
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    ...application. See the authorities gathered by Justice Wakeling (then of the Queen's Bench) in Amex Electrical Ltd. v 726934 Alberta Ltd. , 2014 ABQB 66 at para 75. However, what is critical is prejudice arising from delay, rather than delay itself. According to Master Funduk, An application ......
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34 cases
  • Trisura Guarantee Insurance v Duchnij,
    • Canada
    • Court of Appeal (Alberta)
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    ...of due process in the operation of this system”). [47] 401 U.S. 371 , 374 (1971). [48] Amex Electrical Ltd. v. 726934 Alberta Ltd., 2014 ABQB 66, ¶ 43; [2014] 8 W.W.R. 581 , 595 (“Our community funds the third branch of government to ensure that disputes are resolved in accordance with th......
  • R. v. Ryan (G.R.), (2015) 607 A.R. 47
    • Canada
    • Court of Appeal (Alberta)
    • September 11, 2015
    ...388; 89 W.A.C. 388 (C.A.), refd to. [para. 100, footnote 53]. Amex Electrical Ltd. v. 726934 Alberta Ltd. et al., [2014] 8 W.W.R. 581; 582 A.R. 304; 2014 ABQB 66, refd to. [para. 100, footnote 54]. R. v. Szczerbaniwicz (G.), [2010] 1 S.C.R. 455; 401 N.R. 47, refd to. [para. 100, footnote 54......
  • Ursa Ventures Ltd. v. Edmonton (City), 2016 ABCA 135
    • Canada
    • Court of Appeal (Alberta)
    • December 11, 2015
    ...("A thing that substantially advances an action must be substantial or solid"). 100. See Amex Electrical Ltd. v. 726934 Alberta Ltd. , 2014 ABQB 66, ¶ 70; [2014] 8 W.W.R. 581, 604-05 (the Court gave different meanings to r. 4.22 of the new Alberta Rules of Court and R. 593(1)(i) of the old ......
  • Owners-Condominium Plan No. 0125764 v. Amber Equities Inc. et al., 2015 ABQB 235
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    • Court of Queen's Bench of Alberta (Canada)
    • February 26, 2015
    ...application. See the authorities gathered by Justice Wakeling (then of the Queen's Bench) in Amex Electrical Ltd. v 726934 Alberta Ltd. , 2014 ABQB 66 at para 75. However, what is critical is prejudice arising from delay, rather than delay itself. According to Master Funduk, An application ......
    • Request a trial to view additional results
1 firm's commentaries
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