Background:
Since late 2017, the parties had been engaged in litigation over financial matters related to the development. In January 2024, Smithe Residences sought further document production from the Boffo Defendants, which was ordered by the court in April 2024. The court found that the defendants had not fully complied with earlier orders, including a 2022 order, requiring substantial document disclosure necessary for trial preparation.

Key Legal Issues:
The legal issues focused on the defendants’ compliance with pre-trial discovery obligations, including document production and examinations for discovery. Smithe Residences claimed that the defendants’ non-compliance impaired their ability to prepare for trial. They sought special costs as a remedy under Rule 22-7(5) of the British Columbia Supreme Court Civil Rules, which allows the court to impose penalties for failure to comply with discovery orders.

Court's Findings:
The court determined that the Boffo Defendants delayed document disclosure and only complied under pressure of further legal applications. It characterized the defendants’ actions as obstructive and deserving of rebuke.

Costs Awarded:
Special costs were awarded to Smithe Residences Ltd. to cover their efforts to enforce compliance with the April 2024 order. The exact amount was left to be assessed by the Registrar, intended to deter the defendants’ conduct ahead of the January 2025 trial.