Ultracuts Franchises Incorporated v. Magicuts Inc. et al
Ultracuts Franchises Incorporated
Law Firm / Organization
Marr Finlayson Pollock LLP
Lawyer(s)

Peter Halamandaris

Magicuts Inc.
Law Firm / Organization
Unrepresented
Christopher R. Cawston
Law Firm / Organization
MLT Aikins LLP
Brian A. Luborsky
Law Firm / Organization
MLT Aikins LLP
Grant Thornton Limited as a Trustee of the Estate of Premier Salons Ltd.
Law Firm / Organization
Unrepresented

Case Overview:
The case involved a civil dispute concerning allegations of unlawful interference with economic interests and civil fraud. The dispute stemmed from agreements involving hair salon operations in Wal-Mart Canada Inc. stores. Ultracuts alleged that the defendants, including directors of Magicuts Inc., interfered with its business relationship with Wal-Mart, leading to economic losses.

Legal Arguments and Issues:
Ultracuts initially filed a statement of claim in Manitoba in 2001, pursuing claims of civil fraud and unlawful interference. The case proceeded to trial in 2019, resulting in a decision in 2021 that found the defendants liable. However, this was overturned on appeal in 2023, with Ultracuts’ claims dismissed. The Court of Appeal further denied leave to appeal to the Supreme Court of Canada. Subsequently, the matter of trial and appeal costs was assessed. Key contested issues included disbursements for expert advice and computerized legal research.

Costs Award:
The Court of Appeal ruled that the defendants, Christopher R. Cawston and Brian A. Luborsky, were entitled to costs at double the tariff limit for both the trial and appeal. The total costs awarded included $498,887.90 for expert disbursements and $4,340.63 for computerized legal research, resulting in an overall costs award of $503,228.53 in favor of the successful defendants.

Court of King's Bench Manitoba
CI 01-01-21901
Tort law
$ 503,229
Defendant