Lyn-Gor Developments Inc. v. Canada (Attorney General)

Lyn-Gor Developments Inc. v. Canada (Attorney General)

Lyn-Gor is a non‑Nova Scotian corporation without assets in Nova Scotia and with uncertain financial status and multiple ongoing litigations, creating a legitimate risk it could not satisfy costs awards; under Rule 42 and relevant authority security for costs is warranted; Civil Procedure Rule 9.08(2) requires a...

Source-derived case information.

Citation
2004 NSSC 270
Parties
Plaintiff and Defendant by Counterclaim (corporate Plaintiff/defendant Across Consolidated Matters): Lyn-Gor Development Inc.; Defendant and Plaintiff by Counterclaim: The Attorney General of Canada; Defendant and Plaintiff by Counterclaim: The SGE Group Inc.; Plaintiff (sh No. 196526): BMS Services (1998) Ltd.; Plaintiff (sh No. 196526): VCI Controls Inc.; Plaintiff (sh No. 196526): Dave Pace Plumbing and Heating Limited; Plaintiff (sh No. 196526): Power Electrical Systems Limited; Third Party and Plaintiff by Counterclaim: Defence Construction Canada (1951) Limited
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
7 October 2004
Procedural Posture
Civil Applications (interlocutory) for Security for Costs and Eligibility of Corporate Officer to Represent Company / Applications Heard (interim/oral Decision)
Outcome
Defendant/applicant requests for security for costs granted against Lyn-Gor; Lyn-Gor’s cross‑applications for security for costs dismissed; Mr. Gordon W. Genge prohibited from representing Lyn-Gor in these proceedings; costs awarded to successful applicants and to BSM Services et al.
Legal Topics
Security for Costs, Residence Requirement for Corporate Representative, Disqualification of Corporate Representative From Acting as Counsel, Costs Awards, Interlocutory Relief
Source Language
english
Civil Procedure Corporate Law Costs Law Jurisdictional Procedure Security for Costs Residence Requirement for Corporate Representative Disqualification of Corporate Representative From Acting as Counsel Costs Awards +1 more

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Parties

Lyn-Gor Development Inc.

Plaintiff and Defendant by Counterclaim (corporate Plaintiff/defendant Across Consolidated Matters)

The Attorney General of Canada

Defendant and Plaintiff by Counterclaim

The SGE Group Inc.

Defendant and Plaintiff by Counterclaim

BMS Services (1998) Ltd.

Plaintiff (sh No. 196526)

VCI Controls Inc.

Plaintiff (sh No. 196526)

Dave Pace Plumbing and Heating Limited

Plaintiff (sh No. 196526)

Power Electrical Systems Limited

Plaintiff (sh No. 196526)

Defence Construction Canada (1951) Limited

Third Party and Plaintiff by Counterclaim

Procedural Posture

Civil Applications (interlocutory) for Security for Costs and Eligibility of Corporate Officer to Represent Company / Applications Heard (interim/oral Decision)

Legal Issues

  1. 1 Whether security for costs should be ordered against Lyn-Gor Development Inc.
  2. 2 Whether Lyn-Gor’s applications for security for costs against certain defendants should succeed
  3. 3 Whether Gordon W. Genge, as a corporate officer, may represent Lyn-Gor in Nova Scotia proceedings given his non‑residency

Ratio Decidendi

Lyn-Gor is a non‑Nova Scotian corporation without assets in Nova Scotia and with uncertain financial status and multiple ongoing litigations, creating a legitimate risk it could not satisfy costs awards; under Rule 42 and relevant authority security for costs is warranted; Civil Procedure Rule 9.08(2) requires a resident duly authorized officer to represent a corporation in the province and Mr. Genge’s transient hotel stays do not constitute residency, therefore he must be prohibited from representing Lyn-Gor.

Court Disposition

Defendant/applicant requests for security for costs granted against Lyn-Gor; Lyn-Gor’s cross‑applications for security for costs dismissed; Mr. Gordon W. Genge prohibited from representing Lyn-Gor in these proceedings; costs awarded to successful applicants and to BSM Services et al.

Orders

  • Lyn-Gor to post security for costs payable within 60 days: $20,000 to the Attorney General of Canada and Defence Construction Canada collectively and $15,000 to SGE Group Inc., totaling $35,000
  • Lyn-Gor’s applications for security for costs against Attorney General of Canada dismissed