Rule 508: Stay of Enforcement

Case Summary

This was an Application for a Stay of Enforcement pending Appeal. The Applicant was Principal and Chief Operating Officer of Rocky Mountain Slate Inc., and was found liable for negligent misrepresentations with respect to the Respondents, who were former Investors with the company. Judgment was awarded against the Applicant in an amount equal to the Respondents’ investments, and was likely to exceed $1.5 million.

O’Ferrall J.A. dismissed the Application for a Stay pending Appeal, and held that the general presumption is that successful litigants are entitled to the benefits of the litigation. Stays of money Judgments should only be granted reluctantly. While there may be serious questions to be determined on Appeal, no irreparable harm would be done to the Applicant if execution was allowed to proceed. Further, O’Ferrall J.A. held that the balance of convenience favoured the Respondents. The Respondents indicated that they would hold any funds collected as a result of execution in trust pending the outcome of the Appeal. O’Ferrall J.A. ordered that a written Undertaking to that effect be filed with the Court.

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