TAQA DRILLING SOLUTIONS INC v YAR HOLDINGS INC, 2021 ABCA 300
14.48: Stay pending appeal
The Applicant (“Yar”) applied for a Stay Pending Appeal pursuant to Rule 14.48. One of the Respondents, TAQA Drilling Solutions, Inc. (“TAQA”), entered into a transaction with Yar with two different purchase prices depending on whether certain post-closing conditions were satisfied. When the transaction closed, TAQA deposited the difference between the two purchase prices (the “Funds”) into an escrow account.
The Court considered the legal test for granting a Stay Pending Appeal from RJR-MacDonald Inc v Canada (AG) 1 SCR 311: (a) there is a serious question arguable on appeal; (b) the Applicant would suffer irreparable harm absent the Stay; and (c) the balance of convenience favours granting the Stay. After applying the test, Justice Watson granted the Application.
The Court determined that there was an arguable case on Appeal and that Yar would suffer irreparable harm if the Funds in the escrow account were returned to TAQA in the form of a lost security. Justice Watson also determined that the balance of convenience favoured granting the Stay Pending Appeal. Particularly after Yar offered to post $1 million USD in a trust account pending Appeal.View CanLII Details