Gichuru v. Smith et al., (2014) 362 B.C.A.C. 271 (CA)
| Judge | Harris, Stromberg-Stein and Goepel, JJ.A. |
| Court | Court of Appeal (British Columbia) |
| Case Date | October 29, 2014 |
| Jurisdiction | British Columbia |
| Citations | (2014), 362 B.C.A.C. 271 (CA);2014 BCCA 414 |
Gichuru v. Smith (2014), 362 B.C.A.C. 271 (CA);
622 W.A.C. 271
MLB headnote and full text
Temp. Cite: [2014] B.C.A.C. TBEd. OC.035
Mokua Gichuru (appellant/plaintiff) v. Howard Smith and Howard Smith Personal Law Corporation both doing business as "Howard Smith & Company" (respondents/defendants)
(CA040987; 2014 BCCA 414)
Indexed As: Gichuru v. Smith et al.
British Columbia Court of Appeal
Harris, Stromberg-Stein and Goepel, JJ.A.
October 29, 2014.
Summary:
A lawyer terminated the employment of an articled student for insubordination. The student refused to complete or inadequately completed assigned work that was reasonable and appropriate. Further, in spite of repeated warnings, the student failed to make himself available by cellphone (did not answer worktime calls from the lawyer). The student sued for damages for wrongful dismissal and breach of fiduciary duty.
The British Columbia Supreme Court, in a judgment reported [2013] B.C.T.C. Uned. 895, dismissed the action. Subsequently, in a judgment reported [2013] B.C.T.C. Uned. 1818, the lawyer was summarily awarded lump sum special costs to rebuke the student for recklessly pursuing allegations impugning the lawyer's conduct and to avoid an unnecessary but likely protracted hearing before the Registrar. The student appealed. The lawyer applied for security for the costs of the appeal in the amount of $11,932.60 and security for lump sum special costs in the Supreme Court in the amount of $90,000. They also sought a stay of the appeal pending posting of any security ordered.
The British Columbia Court of Appeal, per Chiasson, J.A., in a judgment reported (2013), 346 B.C.A.C. 315; 592 W.A.C. 315, ordered the student to post $10,000 security for the costs of the appeal and stayed the appeal pending the posting of the security. The court dismissed the application for security for the lump sum costs of the Supreme Court proceedings with liberty to reapply if circumstances and developments made it appropriate.
The British Columbia Court of Appeal allowed the appeal in part. The trial judge did not err in finding cause for dismissal, in finding no fiduciary relationship between the lawyer and the student, or in awarding special costs based on the student's unproven allegations of dishonesty impugning the lawyer's integrity. However, the trial judge erred in summarily assessing special costs absent evidence of legal fees incurred. The court rejected the "rough and ready" method of assessing special costs.
Courts - Topic 691
Judges - Disqualification - Bias - Reasonable apprehension of bias - See paragraphs 48 to 51.
Equity - Topic 3607
Fiduciary or confidential relationships - General principles - Relationships which are not fiduciary - See paragraphs 45 to 47.
Master and Servant - Topic 7554
Dismissal of employees - Grounds - Wilful disobedience or insubordination - See paragraphs 12 to 44.
Practice - Topic 6923
Costs - General principles - Power to award or fix costs - See paragraphs 57 to 163.
Practice - Topic 7462.1
Costs - Solicitor and client costs - Entitlement to solicitor and client costs - Unproven allegations of dishonest or improper conduct (incl. malice) - See paragraphs 57 to 163.
Practice - Topic 7551
Costs - Solicitor and client costs - Taxation - General - See paragraphs 57 to 163.
Cases Noticed:
McKinley v. BC Tel et al. (2001), 271 N.R. 16; 153 B.C.A.C. 161; 251 W.A.C. 161; 2001 SCC 38, refd to. [para. 12].
British Columbia (Minister of Forests) v. Okanagan Indian Band et al. (2003), 313 N.R. 84; 189 B.C.A.C. 161; 309 W.A.C. 161; 2003 SCC 71, refd to. [para. 70].
Bradshaw v. Stenner et al. (2013), 334 B.C.A.C. 52; 572 W.A.C. 52; 2013 BCCA 61, refd to. [para. 73].
Down (Bankrupt), Re (2002), 175 B.C.A.C. 70; 289 W.A.C. 70; 2002 BCCA 632, refd to. [para. 75].
Interclaim Holdings Ltd. v. Down - see Down (Bankrupt), Re.
Hamilton v. Open Window Bakery Ltd. et al. (2004), 316 N.R. 265; 184 O.A.C. 209; 2004 SCC 9, refd to. [para. 77].
Garcia v. Crestbrook Forest Industries Ltd. (No. 2) (1994), 45 B.C.A.C. 222; 72 W.A.C. 222; 9 B.C.L.R.(3d) 242 (C.A.), refd to. [para. 78].
Kurtakis et al. v. Canadian Northern Shield Insurance Co. (1995), 70 B.C.A.C. 76; 115 W.A.C. 76; 17 B.C.L.R.(3d) 197 (C.A.), refd to. [para. 79].
Patriquin v. Laurentian Trust of Canada Inc. et al. (2002), 162 B.C.A.C. 83; 264 W.A.C. 83; 2002 BCCA 6, refd to. [para. 80].
Bronson et al. v. Hewitt et al., [2011] B.C.T.C. Uned. 102; 2011 BCSC 102, refd to. [para. 80].
Startup v. Blake et al., [2001] B.C.T.C. 8; 2001 BCSC 8, refd to. [para. 80].
A.E. v. D.W.J. - see Evans v. Jensen.
Evans v. Jensen, [2008] B.C.T.C. Uned. 937; 2009 BCSC 505, affd. (2011), 307 B.C.A.C. 150; 519 W.A.C. 150; 2011 BCCA 279, refd to. [para. 84].
Young v. Young et al., [1993] 4 S.C.R. 3; 160 N.R. 1; 34 B.C.A.C. 161; 56 W.A.C. 161, refd to. [para. 90].
Laye v. College of Psychologists (B.C.) (1998), 114 B.C.A.C. 201; 186 W.A.C. 201 (C.A.), refd to. [para. 90].
Campbell River Woodworkers & Builders' Supply (1966) Ltd. v. British Columbia (Minister of Transportation and Highways) (2004), 193 B.C.A.C. 29; 316 W.A.C. 29; 2004 BCCA 27, refd to. [para. 90].
Johal v. Virdi et al., [2012] B.C.T.C. Uned. 450; 2012 BCSC 450, refd to. [para. 90].
Chang Estate v. Chang, [2014] B.C.T.C. Uned. 1243; 2014 BCSC 1243, refd to. [para. 90].
Vieira, Re (2013), 342 B.C.A.C. 274; 585 W.A.C. 274; 2013 BCCA 420, refd to. [para. 90].
Victoria (City) v. Adams et al. (2009), 280 B.C.A.C. 237; 474 W.A.C. 237; 2009 BCCA 563, refd to. [para. 90].
Everywoman's Health Centre Society (1988) v. Bridges (1991), 54 B.C.L.R.(2d) 294 (C.A.), refd to. [para. 91].
Lee v. Richmond Hospital Society (2005), 209 B.C.A.C. 161; 345 W.A.C. 161; 2005 BCCA 107, refd to. [para. 91].
Muncaster v. Nunnenmacher et al. (1996), 76 B.C.A.C. 211; 125 W.A.C. 211 (C.A.), refd to. [para. 91].
Romfo et al. v. 1216393 Ontario Inc. et al., [2007] B.C.T.C. Uned. 983; 2007 BCSC 1772, refd to. [para. 91].
A.S.P. v. N.N.J., [2013] B.C.T.C. Uned. 2377; 2013 BCSC 2377, refd to. [para. 91].
MacLeod v. Harrington (1995), 69 B.C.A.C. 1; 113 W.A.C. 1 (C.A.), refd to. [para. 97].
Graham et al. v. Moore Estate et al. (2003), 186 B.C.A.C. 303; 306 W.A.C. 303; 2003 BCCA 497, refd to. [para. 97].
Buchan v. Moss Management Inc. et al, [2010] B.C.T.C. Uned. 121; 2010 BCSC 121, affd. (2010), 291 B.C.A.C. 278; 492 W.A.C. 278; 2010 BCCA 393, refd to. [para. 97].
Lines v. Gordon et al. (2009), 268 B.C.A.C. 128; 452 W.A.C. 128; 2009 BCCA 107, refd to. [para. 98].
Stiles v. Workers' Compensation Board (B.C.) (1989), 38 B.C.L.R.(2d) 307 (C.A.), refd to. [para. 100].
Williston Navigation Inc. v. BCR Finav No. 3 et al., [2007] B.C.T.C. Uned. B32; 2007 BCSC 190, refd to. [para. 103].
Canadian National Railway Co. et al. v. A.B.C. Recycling Ltd., [2005] B.C.T.C. Uned. 1559; 2005 BCSC 1559, refd to. [para. 104].
Royal Trust Corp. of Canada v. Clarke (1985), 35 B.C.L.R.(2d) 82 (C.A.), refd to. [para. 105].
Kelly v. McMillan et al., [2003] B.C.T.C. 307; 2003 BCSC 307, refd to. [para. 116].
Mayer v. Osborne Contracting Ltd. et al., [2011] B.C.T.C. Uned. 914; 2014 BCSC 914, refd to. [para. 121].
Clare's Cove Marina Ltd. et al. v. Salmon Arm (City) et al., [2013] B.C.T.C. Uned. 912; 2013 BCSC 912, refd to. [para. 121].
Hundal v. Border Carrier Ltd. et al., [2012] B.C.T.C. Uned. 2196; 2012 BCSC 2196, refd to. [para. 121].
Nomani v. Tan et al., [2014] B.C.T.C. Uned. 78; 2014 BCSC 78, refd to. [para. 121].
Morriss et al. v. Prism Properties Inc., [2011] B.C.T.C. Uned. 615; 2011 BCSC 615, refd to. [para. 121].
King v. TD Canada Trust, [2013] B.C.T.C. Uned. 2283; 2013 BCSC 2283, refd to. [para. 121].
Bradshaw Construction Ltd. v. Bank of Nova Scotia (1991), 54 B.C.L.R.(2d) 309 (S.C.), affd. (1992), 16 B.C.A.C. 62; 28 W.A.C. 62 (C.A.), refd to. [para. 122].
Yule v. Saskatoon (City) (1955), 16 W.W.R.(N.S.) 305 (Sask. Q.B.), refd to. [para. 124].
National Hockey League et al. v. Pepsi-Cola Canada Ltd. (1995), 56 B.C.A.C. 8; 92 W.A.C. 8; 2 B.C.L.R.(3d) 13 (C.A.), refd to. [para. 124].
Insurance Corp. of British Columbia v. Eurosport Auto Co. et al., [2008] B.C.T.C. Uned. 575; 2008 BCSC 935, refd to. [para. 136].
Statutes Noticed:
Rules of Court (B.C.), Supreme Court Rules, rule 14-1 [para. 86].
Supreme Court Rules - see Rules of Court (B.C.).
Authors and Works Noticed:
Fraser, Horn and Griffin, The Conduct of Civil Litigation in British Columbia (2nd Ed. 2007), generally [para. 115].
Counsel:
Mokua Gichuru, appeared in person;
R.S. Anderson, Q.C., and J.K. Yamashita, for the respondents.
This appeal was heard on September 16, 2014, at Vancouver, B.C., before Harris, Stromberg-Stein and Goepel, JJ.A., of the British Columbia Court of Appeal.
On October 29, 2014, Harris and Goepel, JJ.A., jointly delivered the following judgment for the Court of Appeal.
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