The Defendants were successful in responding to an Application under the Bankruptcy and Insolvency Act, RSC 1985, c B-3, wherein the Plaintiffs argued that the Defendants had acted wrongfully. The Court held that such a declaration would have to wait until the bankruptcy proceedings concluded. The Defendants sought accelerated Costs for their success in the Application. The Plaintiffs argued that no Costs should be awarded because a novel point of law was applied or, alternatively, that Costs should be awarded based on Column 1 of Schedule C.

Justice Veit noted that the Court did not make a finding on the merits with respect to serious wrongdoing. Justice Veit referred to the foundational principles in Rule 1.2 which established that issues, including Costs, should be resolved fairly, justly and in an expeditious manner. Veit J. held that there were no unusual circumstances to warrant the Court declining to follow the usual rule of awarding Costs to the winner. Justice Veit awarded Costs on Column 3 of Schedule C based upon the amount claimed in the Statement of Claim.