Canada Judgment

British Columbia Court of Appeal

Bronson v. Hewitt

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Source document

01

Holding and result

The court allocated costs among the parties as increased costs in specified categories and ordered that the sum of US$910,213.71 and accrued interest remain held in trust until the trustee has passed accounts, the parties' costs have been assessed, and the trustee of the BNO Trust has paid or provided for any tax liabilities, with the registrar to address trustee indemnity and setoffs.

Court disposition

Costs awarded and allocated among parties as specified; trust funds retained in trust pending administrative steps; registrar to consider indemnity and setoffs.

Orders

  • A. Eugene Lewis to have his costs of trial and all other proceedings below not the subject of specific costs orders, and his costs of the appeal and cross appeal, all as increased costs.
  • Howard H. Hewitt to have his costs of trial and all other proceedings below not the subject of a specific costs order, other than costs related to the Proceeds Award, all as increased costs; and his costs of the appeal, as increased costs.
  • The plaintiffs to have their costs of trial as against Mr. Hewitt relating to the Distribution Letter and Proceeds Award, as increased costs.
  • Costs payable by the plaintiffs under the second order may be offset against costs payable by Mr. Hewitt under the third order.
  • The sum of $910,213.71 (US) and interest accrued or accruing thereon, held in trust by McLeod and Company pursuant to the order of Mr. Justice Low dated November 5, 2010, shall continue to be held until (a) Mr. Hewitt has passed his accounts as trustee before the registrar of the Supreme Court of British Columbia; (b) the parties' respective costs have been assessed; and (c) the trustee(s) of the BNO Trust has paid or made provision for the payment of any tax under the Income Tax Act which may be due and owing as at the date of this order; and a court of competent jurisdiction has approved the release of the said funds from trust.
  • The registrar is expected to make recommendations to the Supreme Court of British Columbia regarding Mr. Hewitt's submission that he is entitled to indemnify himself from the trust assets for legal expenses incurred in his capacity as trustee of the Trust, and regarding any setoffs claimed by any of the parties.

02

Material facts

Parties

Thomas E. Bronson

Respondent (plaintiff) Counsel: R.R.E. DeFilippi

J. Tom Bronson

Respondent (plaintiff) Counsel: R.R.E. DeFilippi

Lee B. Lewis

Respondent (plaintiff) Counsel: R.R.E. DeFilippi

Virginia C. Shaffer

Respondent (plaintiff) Counsel: R.R.E. DeFilippi

H. Davis Lewis Jr.

Respondent (plaintiff) Counsel: R.R.E. DeFilippi

Harold D. Lewis Sr.

Respondent (plaintiff) Counsel: R.R.E. DeFilippi

Howard H. Hewitt

Appellant; Respondent by Cross Appeal (defendant) Counsel: W.G. MacLeod, S. Field

A. Eugene Lewis

Respondent by Cross Appeal; Appellant (cross Appeal) Counsel: J.G. Dives, Q.C.

Jennifer Lewis Browning

Defendant

Julie Lewis Hendrickson

Defendant

William David Tompkins

Defendant (trustee of the Graham River Trust)

Trustee of the Graham River Trust

Defendant

Graham River Outfitters Ltd.

Defendant

Margaret H. Mason

Defendant

Bull, Housser & Tupper

Defendant

Bull, Housser & Tupper LLP

Defendant

Amounts and remedies

  • Funds Held in Trust: USD 910,213.71

03

Procedural history

  1. Posture

    Appeal and Cross Appeal From Civil Trial Involving Trust and Distribution Issues / Supplementary Reasons and Orders on Costs and Funds Held in Trust After Appellate Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
Applicants sought increased costs awards, directions that specified funds remain in trust until trustee accounts are passed, costs are assessed, and any taxes are paid or provided for, and sought recognition of trustee's entitlement to indemnify legal expenses from trust assets.
Respondent
Respondents resisted release of trust funds and resisted some costs claims and indemnity claims; they asserted competing setoffs and contested scope of indemnity from trust assets.

05

Court’s reasoning

  1. 01

    Court of Appeal (Bronson v. Hewitt, 2013 BCCA 488)

    Appellate court may order costs and specify increased costs

  2. 02

    Court order; Income Tax Act (Canada)

    Trust assets may be retained in trust pending passing of accounts, assessment of costs and provision for taxes

  3. 03

    Court of Appeal direction in judgment

    Registrar of the Supreme Court may make recommendations regarding trustee indemnity and any claimed setoffs

06

Ratio, limits and disposition

Ratio decidendi

The court allocated costs among the parties as increased costs in specified categories and ordered that the sum of US$910,213.71 and accrued interest remain held in trust until the trustee has passed accounts, the parties' costs have been assessed, and the trustee of the BNO Trust has paid or provided for any tax liabilities, with the registrar to address trustee indemnity and setoffs.

Obiter and limits

  • The registrar is expected to make recommendations concerning the trustee's claim to indemnify legal expenses from trust assets.
  • Costs payable between parties may be offset against one another as ordered by the court.

Court disposition

Costs awarded and allocated among parties as specified; trust funds retained in trust pending administrative steps; registrar to consider indemnity and setoffs.

  • A. Eugene Lewis to have his costs of trial and all other proceedings below not the subject of specific costs orders, and his costs of the appeal and cross appeal, all as increased costs.
  • Howard H. Hewitt to have his costs of trial and all other proceedings below not the subject of a specific costs order, other than costs related to the Proceeds Award, all as increased costs; and his costs of the appeal, as increased costs.
  • The plaintiffs to have their costs of trial as against Mr. Hewitt relating to the Distribution Letter and Proceeds Award, as increased costs.
  • Costs payable by the plaintiffs under the second order may be offset against costs payable by Mr. Hewitt under the third order.
  • The sum of $910,213.71 (US) and interest accrued or accruing thereon, held in trust by McLeod and Company pursuant to the order of Mr. Justice Low dated November 5, 2010, shall continue to be held until (a) Mr. Hewitt has passed his accounts as trustee before the registrar of the Supreme Court of British Columbia; (b) the parties' respective costs have been assessed; and (c) the trustee(s) of the BNO Trust has paid or made provision for the payment of any tax under the Income Tax Act which may be due and owing as at the date of this order; and a court of competent jurisdiction has approved the release of the said funds from trust.
  • The registrar is expected to make recommendations to the Supreme Court of British Columbia regarding Mr. Hewitt's submission that he is entitled to indemnify himself from the trust assets for legal expenses incurred in his capacity as trustee of the Trust, and regarding any setoffs claimed by any of the parties.

Source and reliance status

British Columbia Court of Appeal · 15 November 2013

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Judgment reading view

Judgment text

The complete available source text.

Source document

British Columbia Court of Appeal

Judgment· 15 November 2013

2013 BCCA 488

2013 BCCA 488 Bronson v. Hewitt

COURT OF APPEAL FOR BRITISH COLUMBIA Citation: Bronson v. Hewitt, 2013 BCCA 488 Date: 20131115 Dockets: CA037941; CA037947; CA038299 Docket CA037941 Between: Thomas E. Bronson, J. Tom Bronson, Lee B. Lewis, Virginia C. Shaffer, H. Davis Lewis Jr., and Harold D. Lewis, Sr. Respondents (Plaintiffs) And Howard H. Hewitt Appellant Respondent by Cross Appeal (Defendant) And A. Eugene Lewis Respondent by Cross Appeal (Defendant) And Jennifer Lewis Browning, Julie Lewis Hendrickson, William David Tompkins, Trustee of the Graham River Trust, Graham River Outfitters Ltd., Margaret H. Mason, Bull, Housser & Tupper and Bull, Housser & Tupper LLP (Defendants) - and - Docket: CA037947 Between: Thomas E. Bronson, J. Tom Bronson, Lee B. Lewis, Virginia C. Shaffer, H. Davis Lewis Jr., and Harold D. Lewis Sr. Respondents (Appellants by Cross Appeal) And A. Eugene Lewis Appellant (Respondent by Cross Appeal) And Howard H. Hewitt, Jennifer Lewis Browning, Julie Lewis Hendrickson, William David Tompkins, in his capacity as Trustee of the Graham River Trust, Graham River Outfitters Ltd., Margaret H. Mason, Bull, Housser & Tupper, and Bull, Housser & Tupper LLP (Defendants) - and - Docket: CA038299 Between: Thomas E. Bronson, J. Tom Bronson, Lee B. Lewis, Virginia C. Shaffer, H. Davis Lewis Jr., and Harold D. Lewis Sr. Respondents (Plaintiffs) And Howard H. Hewitt Appellant (Defendant) And A. Eugene

Lewis, Jennifer Lewis Browning, Julie Lewis Hendrickson, William David Tompkins, Trustee of the Graham River Trust, Graham River Outfitters Ltd., Margaret H. Mason, Bull, Housser & Tupper, and Bull, Housser & Tupper LLP (Defendants) Before: The Honourable Madam Justice Newbury The Honourable Mr. Justice Chiasson The Honourable Madam Justice A. MacKenzie Supplementary Reasons and to Bronson v. Hewitt, 2013 BCCA 367. Counsel for the Appellant H. Hewitt: W.G. MacLeod S. Field Counsel for the Respondent by Cross Appeal, A.E. Lewis: J.G. Dives, Q.C Counsel for the Respondents: R.R.E. DeFilippi Place and Date of Hearing: Vancouver, British Columbia June 10, 11 & 12, 2013 Place and Date of Judgment: Vancouver, British Columbia August 14, 2013 Oral Submissions: October 23, 2013 Written Submissions Received: September 18, 25, 27 and October 18, 22, 23 & 31, 2013 Date of Supplementary Judgment: November 15, 2013 Supplementary Reasons of The Court Supplementary Reasons for Judgment of the Court: [1] Having received and considered the written and oral submissions of counsel, we are all of the view that: 1. Mr. Eugene Lewis should have his costs of trial and all other proceedings below which were not the subject of specific costs orders, and his costs of the appeal and cross appeal, all as increased costs; 2. Mr. Hewitt should have his costs of trial and all other proceedings below which

were not the subject of a specific costs order, other than costs related to the Proceeds Award, all as increased costs; and his costs of the appeal, as increased costs; 3. the plaintiffs should have their costs of trial as against Mr. Hewitt relating to the Distribution Letter and Proceeds Award, as increased costs; 4. the costs payable by the plaintiffs under para. 2 hereof may be offset against the costs payable by Mr. Hewitt under para. 3; 5. the sum of $910,213.71 (US) and interest accrued or accruing thereon, which is being held in trust by McLeod and Company in accordance with the order of Mr. Justice Low dated November 5, 2010, shall continue to be held until: a) Mr. Hewitt has passed his accounts as trustee before the registrar of the Supreme Court of British Columbia; b) the parties' respective costs have been assessed; and c) the trustee(s) of the BNO Trust has paid or made provision for the payment of any tax under the Income Tax Act which may be due and owing as at the date of this order; and a court of competent jurisdiction has approved the release of the said funds from trust. [2] We expect that the registrar will make recommendations to the Supreme Court of British Columbia regarding Mr. Hewitt's submission that he is entitled to indemnify himself from the trust assets for legal expenses incurred in his capacity as trustee of the Trust, and regarding any setoffs claimed by any of the parties. "The Honourable Madam Justice Newbury" "The Honourable Mr. Justice Chiasson" "The Honourable Madam Justice A. MacKenzie"

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Bronson v. Hewitt, 2013 BCCA 367

Case cited

Order of Mr. Justice Low dated November 5, 2010

Case cited

Income Tax Act (Canada)

Legislation

Legislation referenced in the available case record.

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