Canada Judgment

British Columbia Court of Appeal

Valmet Paper Machinery Inc. v. Hapag-Lloyd AG

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01

Holding and result

Hapag-Lloyd is entitled to its costs of the appeal against Valmet on scale 1; the Court will not order that those costs be added as a disbursement to Valmet's costs against Davis and, even assuming the Court had power analogous to Supreme Court Rule 57(18), this was not an appeal in which to exercise it.

Court disposition

Hapag-Lloyd respondents awarded costs against Valmet appellants on scale 1; no order made requiring Davis to indemnify Valmet for those costs.

Orders

  • Hapag-Lloyd AG and Hapag-Lloyd (America) Inc. are awarded their costs of this Court against Valmet Paper Machinery Inc. and Valmet-Montreal Inc. on scale 1.
  • No order is made requiring H.A. Davis Transport Ltd. or John Lawrence Gilmour to indemnify Valmet for the costs awarded to Hapag-Lloyd; the Court declines to exercise any hypothetical power analogous to Supreme Court Rule 57(18) in this case.

02

Material facts

Parties

Valmet Paper Machinery Inc.

Appellant/plaintiff Counsel: A. B. Oland

Valmet-Montreal Inc.

Appellant/plaintiff Counsel: A. B. Oland

Hapag-Lloyd AG

Respondent/defendant Counsel: I. S. Nossal

Hapag-Lloyd (America) Inc.

Respondent/defendant Counsel: I. S. Nossal

H.A. Davis Transport Ltd.

Respondent/defendant Counsel: R. P. Saul; M. Heemskerk

John Lawrence Gilmour

Respondent/defendant Counsel: R. P. Saul; M. Heemskerk

Amounts and remedies

  • Costs Awarded (scale 1): 0

03

Procedural history

  1. Posture

    Civil Appeal / Costs Determination on Appeal

04

Questions and positions

Legal issues

Party arguments

Applicant
Hapag-Lloyd argued that it is entitled to its costs of this appeal against the Valmet appellants and sought an order for those costs on scale 1.
Respondent
Valmet argued that, having been respondent in the Davis appeal, it should be permitted to add Hapag-Lloyd's costs as a disbursement to its costs against Davis; reliance was placed on a Supreme Court Rule 57(18) order made in the court below.

05

Court’s reasoning

  1. 01

    Court of Appeal practice and judicial discretion

    A successful respondent on appeal is entitled to costs subject to the court's discretion

  2. 02

    Supreme Court Rule 57(18)

    A trial court order under Supreme Court Rule 57(18) permitted adding costs as a disbursement below

  3. 03

    Court of Appeal jurisprudence and appellate procedure

    This Court has no directly analogous rule to Supreme Court Rule 57(18) and will not lightly exercise a hypothetical power to order indemnity between parties where not appropriate

06

Ratio, limits and disposition

Ratio decidendi

Hapag-Lloyd is entitled to its costs of the appeal against Valmet on scale 1; the Court will not order that those costs be added as a disbursement to Valmet's costs against Davis and, even assuming the Court had power analogous to Supreme Court Rule 57(18), this was not an appeal in which to exercise it.

Obiter and limits

  • This Court has no analogous rule to Supreme Court Rule 57(18).
  • Valmet's appeal, in light of the learned trial judge's reasons, might better not have been brought.

Court disposition

Hapag-Lloyd respondents awarded costs against Valmet appellants on scale 1; no order made requiring Davis to indemnify Valmet for those costs.

  • Hapag-Lloyd AG and Hapag-Lloyd (America) Inc. are awarded their costs of this Court against Valmet Paper Machinery Inc. and Valmet-Montreal Inc. on scale 1.
  • No order is made requiring H.A. Davis Transport Ltd. or John Lawrence Gilmour to indemnify Valmet for the costs awarded to Hapag-Lloyd; the Court declines to exercise any hypothetical power analogous to Supreme Court Rule 57(18) in this case.

Source and reliance status

British Columbia Court of Appeal · 10 December 2004

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Judgment text

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Source document

British Columbia Court of Appeal

Judgment· 10 December 2004

2004 BCCA 637

2004 BCCA 637 Valmet Paper Machinery Inc. v. Hapag-Lloyd AG

COURT OF APPEAL FOR BRITISH COLUMBIA Citation: Valmet Paper Machinery Inc. v. Hapag-Lloyd AG, 2004 BCCA 637 Date: 20041210 Docket: CA029881 Between: Valmet Paper Machinery Inc. and Valmet-Montreal Inc. Appellants (Plaintiffs) And Hapag-Lloyd AG, Hapag-Lloyd (America) Inc., H.A. Davis Transport Ltd., and John Lawrence Gilmour Respondents (Defendants) Before: The Honourable Madam Justice Southin The Honourable Mr. Justice Thackray The Honourable Mr. Justice Oppal A. B. Oland Counsel for the Appellants I. S. Nossal Counsel for the Respondents, Hapag-Lloyd AG and Hapag-Lloyd (America) Inc. R. P. Saul and M. Heemskerk Counsel for the Respondents, H.A. Davis Transport Ltd. and John Lawrence Gilmour Place and Date of Hearing: Vancouver, British Columbia 13th and 14th September, 2004 Place and Date of Judgment: Vancouver, British Columbia 12th October, 2004 Written submissions received: 12th, 25th and 29th November, 2004 Place and Date of Supplementary Judgment: Vancouver, British Columbia 10th December, 2004 Supplementary Reasons as to costs by: The Honourable Madam Justice Southin Concurred in by: The Honourable Mr. Justice Thackray The Honourable Mr. Justice Oppal Reasons for Judgment of the Honourable Madam Justice Southin: [1] At issue now are the costs of this appeal by Valmet Paper Machinery Inc. and Valmet Montreal Inc. from the judgment below dismissing their action against

the respondents, Hapag-Lloyd AG and Hapag-Lloyd (America) Inc. [2] The principal appeal was that of H.A. Davis Transport Ltd. and John Lawrence Gilmour (CA029869) against the judgment against them in favour of the Valmet companies. That appeal (the Davis appeal) was dismissed. [3] The first mentioned appeal, which was treated as a cross-appeal, although set down to be heard with the Davis appeal, was barely mentioned at the hearing. It was dismissed essentially because, the Davis appeal having failed, there was no point to it. [4] The Hapag-Lloyd respondents want their costs in this Court. Contrary to my previous opinion, I conclude that they are so entitled. [5] For their part, the Valmet companies, as respondents in the Davis appeal, want an order that they may add those costs as a disbursement to their own costs against Davis. [6] In the court below, an order was made pursuant to Supreme Court Rule 57(18) to that effect. [7] This Court has no analogous rule. But assuming, without deciding, that this Court has the power to order an unsuccessful appellant (Davis) to indemnify the respondent in its appeal against the costs which that respondent, as an unsuccessful cross-appellant, ought to pay to the respondent in the cross-appeal, this is not an appeal in which to exercise the power. [8] Valmet's appeal, in light of the learned judge's reasons, might better not have been brought. [9] Thus, the Hapag-Lloyd respondents shall have their costs against the Valmet appellants on scale 1. "The Honourable Madam Justice Southin" I agree: "The Honourable Mr. Justice Thackray" I agree: "The Honourable Mr. Justice Oppal"

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Authorities

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

Supreme Court Rule 57(18)

Legislation

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