Canada Judgment

Federal Court

Canadian Maritime Engineering Ltd. v. Ionada Incorporated

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

Because the order dated June 22, 2023 did not specify that costs were payable forthwith, established Federal Court authority requires that assessment of interlocutory costs be deferred until the conclusion of the trial; therefore the assessment is premature and will not proceed at this stage to avoid multiplicity of assessments.

Court disposition

Assessment of the Plaintiff's Bill of Costs is premature and will not take place at this stage; assessment deferred until conclusion of the action unless the Court orders costs payable forthwith.

Orders

  • Costs on the interlocutory motion were awarded to the Plaintiff and fixed in the middle of Column III of Tariff B (Order dated June 22, 2023).
  • Assessment of the Plaintiff's Bill of Costs is postponed; no assessment will take place at this stage of the proceedings.

02

Material facts

Parties

Canadian Maritime Engineering Ltd.

Plaintiff Counsel: Brendan D. Peters

Ionada Incorporated

Defendant

03

Procedural history

  1. Posture

    Interlocutory Motion — Examination in Aid of Execution / Costs Assessment (interlocutory Stage)

04

Questions and positions

Legal issues

Party arguments

Applicant
Plaintiff filed a Bill of Costs after the Court awarded costs on the interlocutory motion and treated the Bill as unopposed; the Plaintiff sought assessment of those costs.
Respondent
No submissions or written representations were filed by the Defendant; no opposing argument was presented.

05

Court’s reasoning

  1. 01

    Buck v Canada (Attorney General), 2022 FC 352; John Stagliano, Inc v Elmaleh, 2006 FC 1096; Waterfurnace Inc v 803943 Ontario Ltd, [1991] FCJ No 912

    Costs awarded on an interlocutory motion are not payable until the conclusion of the trial unless the Court specifically orders that costs are payable forthwith.

  2. 02

    Nature's Path Foods Inc v Country Fresh Enterprises Inc, [1999] FCJ No 827

    Assessment of interlocutory costs before the conclusion of the action would risk a multiplicity of assessments and is to be avoided.

  3. 03

    Dahl v Canada, 2007 FC 194

    An assessment officer must remain neutral and ensure the Bill of Costs complies with procedural requirements, the Rules and applicable jurisprudence when considering unopposed bills.

06

Ratio, limits and disposition

Ratio decidendi

Because the order dated June 22, 2023 did not specify that costs were payable forthwith, established Federal Court authority requires that assessment of interlocutory costs be deferred until the conclusion of the trial; therefore the assessment is premature and will not proceed at this stage to avoid multiplicity of assessments.

Obiter and limits

  • The Bill of Costs is unopposed due to absence of written representations, but that fact does not override the principle that interlocutory costs are payable only at trial absent specific direction.
  • Assessment officers must check compliance with procedural steps, Rules and jurisprudence while maintaining neutrality when bills are unopposed.

Court disposition

Assessment of the Plaintiff's Bill of Costs is premature and will not take place at this stage; assessment deferred until conclusion of the action unless the Court orders costs payable forthwith.

  • Costs on the interlocutory motion were awarded to the Plaintiff and fixed in the middle of Column III of Tariff B (Order dated June 22, 2023).
  • Assessment of the Plaintiff's Bill of Costs is postponed; no assessment will take place at this stage of the proceedings.

Source and reliance status

Federal Court · 17 November 2023

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Judgment reading view

Judgment text

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Source document

Federal Court

Judgment· 17 November 2023

2023 FC 1514

Canadian Maritime Engineering Ltd. v. Ionada Incorporated Court (s) Database Federal Court Decisions Date 2023-11-17 Neutral citation 2023 FC 1514 File numbers T-836-17 Decision Content Date: 20231117 Docket: T-836-17 Citation: 2023 FC 1514 BETWEEN:

CANADIAN MARITIME ENGINEERING LTD., A BODY CORPORATE Plaintiff and IONADA INCORPORATED,

A BODY CORPORATE Defendant

REASONS FOR ASSESSMENT Stéphanie St-Pierre Babin, Assessment Officer I. Background [1] By way of Order dated June 22, 2023, the Court granted the Plaintiff’s interlocutory motion to compel answers and attendance for examination in aid of execution filed on November 10, 2022, and provided the following instructions as to costs: 6. Costs on this motion are awarded to the Plaintiff and are fixed in the middle of Column III of Tariff B. [2] Following this Order, the Plaintiff filed its Bill of Costs on June 30, 2023. Consequently, a direction providing the parties with the deadlines to file their written representations was issued on July 5, 2023. As the time limits have now expired, the court record shows that neither party filed written representations with regard to the assessment of costs. [3] The absence of representations by both parties results in the Plaintiff’s Bill of costs being unopposed. In such cases, my duty as an assessment officer is to consider the Bill of Costs to ensure it complies with the procedural steps followed in the proceeding, the Rules and the applicable jurisprudence, without stepping away from my position of neutrality (Dahl v Canada, 2007 FC 194, at para 2). [4] Having read the case law regarding Bills of Costs filed at the interlocutory stage of a matter, I conclude that I cannot proceed with the assessment of costs at this point. In fact, the

Federal Court consistently held that costs awarded on an interlocutory motion are not payable until the conclusion of a trial unless the Court specifically orders that costs are payable forthwith (Buck v Canada (Attorney General), 2022 FC 352, paras 16‒17; John Stagliano, Inc v Elmaleh, 2006 FC 1096, para 8; Waterfurnace Inc v 803943 Ontario Ltd, [1991] FCJ No 912). In so doing, this principle prevents a “multiplicity of assessments in the course of an action” (Nature's Path Foods Inc v Country Fresh Enterprises Inc, [1999] FCJ No 827, para 3). [5] In the absence of specific directions from the Court awarding costs to be payable forthwith in the Order dated June 22, 2023, I am of the opinion that the assessment of the Plaintiff’s Bill of Costs is premature and will not take place at this stage of the proceedings. “Stéphanie St-Pierre Babin” Assessment Officer

FEDERAL COURT

SOLICITORS OF RECORD DOCKET: T-836-17 STYLE OF CAUSE: CANADIAN MARITIME ENGINEERING LTD., A BODY CORPORATE v. IONADA INCORPORATED, A BODY CORPORATE MATTER CONSIDERED AT OTTAWA, ONTARIO WITHOUT PERSONAL APPEARANCE OF THE PARTIES REASONS FOR ASSESSMENT BY: Stéphanie St-Pierre Babin, Assessment Officer DATED: November 17, 2023 WRITTEN SUBMISSIONS BY: Brendan D. Peters For The PLAINTIFF N/A For The DEFENDANT SOLICITORS OF RECORD: Stewart McKelvey Barristers and Solicitors Halifax, Nova Scotia For The PLAINTIFF

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Authorities

Authorities used by the court

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

Canadian Maritime Engineering Ltd v Ionada Incorporated, 2023 FC 1514

Case cited

Buck v Canada (Attorney General), 2022 FC 352

Case cited

John Stagliano, Inc v Elmaleh, 2006 FC 1096

Case cited

Waterfurnace Inc v 803943 Ontario Ltd, [1991] FCJ No 912

Case cited

Nature's Path Foods Inc v Country Fresh Enterprises Inc, [1999] FCJ No 827

Case cited

Dahl v Canada, 2007 FC 194

Case cited

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