Court of Appeal of Quebec

Endorecherche inc. c. Université Laval

February 15, 2019


Rochette, Dufresne, G. Gagnon

Application for security for costs. Allowed in part. Application to dismiss appeal. Dismissed.

The judgement under appeal found that the appellants’ reporting was incomplete and condemned them to pay $11,281,129. The respondents ask the Court to subject the appeal to the provision of a suretyship of $16,119,921 to guarantee payment of the condemnation if the judgment is upheld, and of $20,000 to guarantee payment of the appeal costs. They argue in particular that the appellants’ conduct over the last 10 years has displayed their clear intention to pay none of the money they owe them.

The new test under art. 364 Code of Civil Procedure (CQLR, c. C-25.01) (C.C.P.) expands the Court’s discretion in suretyship matters, although it does not necessarily erase the teachings of prior judgments under the former law. Thus, the suretyship must be justified, but the situation need not be [translation] “special”, which at one time was characterized as [translation] “exceptional”. In this case, it is true that the attitude displayed by the appellants since the party’s partnership began does not meet the requirements of collaboration and cooperation, the scope and guiding role of which are now recognized under art. 20 C.C.P. The Court finds that the evidence is clear, precise and explicit, and that it establishes that, to guarantee the rights recognized by the trial judgment, suretyship in the amount of $5 million should be ordered.

*Summary by SOQUIJ
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