Case Overview:
The appellant, Argo Mezzanine Financing No. 1 Ltd. ("Argo"), provided a $40 million CAD loan to the respondent, Plaza 88 Development Ltd. ("Plaza"), for a real estate development project in New Westminster, British Columbia. The loan was governed by a Commitment Letter and a Participation Agreement, granting Argo a 10% share of the project's Net Distributable Capital (NDC).

Background:
Plaza could repay the loan in Canadian dollars or Korean Won, assuming any risk or benefit from currency fluctuations. Plaza repaid in Korean Won, saving approximately $10 million CAD due to favorable exchange rates. Argo claimed entitlement to 10% of these savings (Currency Exchange Savings or "CES") under the Participation Agreement, arguing that CES formed part of the NDC. Plaza argued that, per the Commitment Letter, CES were excluded, as Plaza bore all currency fluctuation risks.

Legal Issues:
The key issue was whether CES should be included in the NDC, entitling Argo to a share of the savings.

Court’s Findings:
The Court of Appeal dismissed Argo's appeal, concluding that the agreements clearly allocated currency fluctuation risks and benefits to Plaza. The Participation Agreement did not alter this allocation.

Outcome and Costs:
The appeal was dismissed, and costs were awarded to Plaza 88 Development Ltd.. Financial terms were not specified.