Bronson v. Hewitt
- Citation
- 2013 BCCA 488
- Status
- Judgment
- Jurisdiction
- Canada
- Court
- British Columbia Court of Appeal
- Decision
- 15 November 2013
- 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
- Language
- English
More details
- Court
- British Columbia Court of Appeal
- Decision
- 15 November 2013
- 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
- Language
- English
On this page
Professional case brief
Research organized from the available case record
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. DeFilippiJ. Tom Bronson
Respondent (plaintiff) Counsel: R.R.E. DeFilippiLee B. Lewis
Respondent (plaintiff) Counsel: R.R.E. DeFilippiVirginia C. Shaffer
Respondent (plaintiff) Counsel: R.R.E. DeFilippiH. Davis Lewis Jr.
Respondent (plaintiff) Counsel: R.R.E. DeFilippiHarold D. Lewis Sr.
Respondent (plaintiff) Counsel: R.R.E. DeFilippiHoward H. Hewitt
Appellant; Respondent by Cross Appeal (defendant) Counsel: W.G. MacLeod, S. FieldA. Eugene Lewis
Respondent by Cross Appeal; Appellant (cross Appeal) Counsel: J.G. Dives, Q.C.Jennifer Lewis Browning
DefendantJulie Lewis Hendrickson
DefendantWilliam David Tompkins
Defendant (trustee of the Graham River Trust)Trustee of the Graham River Trust
DefendantGraham River Outfitters Ltd.
DefendantMargaret H. Mason
DefendantBull, Housser & Tupper
DefendantBull, Housser & Tupper LLP
DefendantAmounts and remedies
- Funds Held in Trust: USD 910,213.71
03
Procedural history
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
- 01
entitlement to increased costs for various parties
- 02
allocation and offsetting of costs between parties
- 03
whether funds held in trust should be released prior to passing of trustee accounts and payment or provision for taxes
- 04
whether trustee may indemnify himself from trust assets for legal expenses
- 05
role of registrar in advising on indemnity and setoffs
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
Legal principles
- 01
Court of Appeal (Bronson v. Hewitt, 2013 BCCA 488)
Appellate court may order costs and specify increased costs
- 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
- 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.
British Columbia Court of Appeal
Judgment· 15 November 2013
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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