Focus On

Civil Litigation - Civil procedure - Appeals - Stay of proceedings pending appeal - Balance of convenience - Irreparable harm - Serious issue to be tried -  

Thursday, July 07, 2016 @ 8:00 PM  

Motion by the defendant appellants, Deloitte & Touche, for a stay of a judgment and order pending determination of an application for leave to appeal to the Supreme Court of Canada. At trial, the plaintiff, Livent, was awarded damages of $84.75 million plus prejudgment interest of $33.29 million and costs. The defendants’ appeal to the Court of Appeal was dismissed. The defendants applied for leave to appeal to the Supreme Court of Canada and sought a stay pending determination of the leave application.

HELD: Motion allowed. The proposed appeal met the low threshold of raising a serious argument in support of leave to appeal. The duty of care owed by an auditor of a public company and the applicable standard of care were reasonably regarded as issues of public importance. Although the evidence of irreparable harm was weak, permitting immediate enforcement of the judgment would be sufficiently disruptive of the defendants’ business so as to amount to irreparable harm. There was no reasonable likelihood the judgment would not be immediately satisfied in full by the defendants’ liability insurers in the event that leave to appeal was refused. Given provision of sufficient and reasonable security for the judgment, the balance of convenience favoured the relief sought.