In what is certainly the most significant decision regarding the court’s ability to award costs against non-parties in over 45 years, the Ontario Court of Appeal has clarified the source of the court’s jurisdiction to award costs against non-parties and the applicable tests to be applied.
Chief Justice Strathy, writing for a unanimous court, noted that there had been considerable ambiguity in the case law as to whether the court possesses inherent jurisdiction, in addition to its explicit statutory jurisdiction, to award costs against a non-party. Strathy C.J.O. concluded that the court does in fact possession inherent jurisdiction in addition . . . [more]