Dallas/North Group Inc. (Bankrupt) et al., Re,

• Jurisdiction: Ontario
• Judge: Labrosse, Abella and MacPherson, JJ.A.
• Citation: (2001), 148 O.A.C. 288 (CA)
• Court: Court of Appeal (Ontario)
• Date: 03 July 2001

Dallas/North Group (Bankrupt), Re (2001), 148 O.A.C. 288 (CA)

MLB headnote and full text

Temp. Cite: [2001] O.A.C. TBEd. JL.017

In The Matter Of A Petition in Bankruptcy against Dallas/North Group Inc.

In The Matter Of a Petition in Bankruptcy against Ted Pangia

(C32504; C32501)

Indexed As: Dallas/North Group Inc. (Bankrupt) et al., Re

Ontario Court of Appeal

Labrosse, Abella and MacPherson, JJ.A.

July 5, 2001.

Summary:

Dallas/North Group Inc. (D/NG) and Pangia were petitioned into bankruptcy on the basis of a promissory note made by them. It was alleged that Pangia and D/NG ceased to meet their liabilities generally as they became due. After extensive review the trial judge concluded that the petitioning creditors failed to establish either the debt alleged to be owing or the alleged acts of bankruptcy. The trial judge also concluded that the petitions were brought for a collateral purpose, namely to remove Pangia as a officer and director of a third-party company. Moreover, there had been a concentrated effort orchestrated by Mazza and Axton (non-parties to the bankruptcy proceedings) of bullying, harassment and intimidation against Pangia. The petitions were dismissed and costs were awarded against Mazza and Axton. Mazza and Axton appealed the costs award as against them.

The Ontario Court of Appeal dismissed the appeal.

Bankruptcy - Topic 6971

Practice - Legal costs - General - [See Practice - Topic 7765 ].

Practice - Topic 7765

Costs - Special orders - Costs against nonparty - Dallas/North Group Inc. (D/NG) and Pangia were petitioned into bankruptcy on the basis of a promissory note made by them - After extensive review the trial judge concluded that the petitioning creditors failed to establish either the debt alleged to be owing or the alleged acts of bankruptcy - The trial judge also concluded that the petitions were brought for a collateral purpose, namely to remove Pangia as a officer and director of a third-party company - Moreover, there had been a concentrated effort orchestrated by Mazza and Axton (non-parties to the bankruptcy proceedings) of bullying, harassment and intimidation against Pangia - The petitions were dismissed and costs were awarded against Mazza and Axton - Mazza and Axton appealed the costs award as against them - The Ontario Court of Appeal dismissed the appeal - This was an appropriate case to have costs awarded against a nonparty.

Cases Noticed:

Rockwell Developments Ltd. v. Newtonbrook Plaza Ltd., [1972] 3 O.R. 199; 27 D.L.R.(3d) 651 (C.A.), refd to. [para. 12].

Oasis Hotel Ltd. v. Zurich Insurance Co. (1981), 124 D.L.R.(3d) 455 (B.C.C.A.), refd to. [para. 12].

Sturmer v. Beaverton (Town) (1912), 2 D.L.R. 501 (Ont. Div. Ct.), refd to. [para. 13].

Television Real Estate Ltd. v. Rogers Cable T.V. Ltd. (1997), 99 O.A.C. 226; 34 O.R.(3d) 291 (C.A.), refd to. [para. 13].

XLO Investments Ltd. v. Hurontario Management Services et al. (1999), 118 O.A.C. 258 (C.A.), refd to. [para. 13].

Counsel:

William V. Sasso, for the appellant, Nigel Axton;

Howard W. Reininger, for the appellant, Paul Mazza;

Douglas Langley, for the respondents, Dallas/North Group Inc. and Ted Pangia.

This appeal was heard on July 3, 2001, before Labrosse, Abella and MacPherson, JJ.A., of the Ontario Court of Appeal. On July 5, 2001, Labrosse, J.A., delivered the following judgment for the Court of Appeal.