Casa Margarita Enterprises Ltd. v. Huntly Investments Limited
Casa Margarita Enterprises Ltd.
Law Firm / Organization
Singleton Urquhart Reynolds Vogel LLP
Lawyer(s)

Ronald Josephson

Huntly Investments Limited
Law Firm / Organization
Farris LLP
The Pacific Investment Corporation Limited
Law Firm / Organization
Farris LLP
Brent Wolverton
Law Firm / Organization
Farris LLP
Mark Frank Wolverton
Law Firm / Organization
Farris LLP
Lisa Marie Wolverton
Law Firm / Organization
Farris LLP
Kathleen May Wolverton
Law Firm / Organization
Farris LLP
Anne Louise Wolverton
Law Firm / Organization
Unrepresented
The DM Wolverton Trust
Law Firm / Organization
Farris LLP
The Wolverton Alter Ego Trust
Law Firm / Organization
Farris LLP

Background Facts:
Casa Margarita Enterprises Ltd. (Casa Margarita), a minority shareholder holding 1.82% of shares in Huntly Investments Limited (Huntly), sought to sell its shares as part of Margaret Cowan’s estate distribution. Casa Margarita alleged that the Huntly Defendants obstructed its ability to assess and sell the shares, amounting to oppressive conduct.

The trial was bifurcated, with liability decided first. The court ruled in favor of Casa Margarita, finding that Huntly Defendants engaged in oppressive and unfairly prejudicial conduct under s. 227 of the Business Corporations Act, S.B.C. 2002, c. 57. Appeals were dismissed at all levels, including the Supreme Court of Canada.

Legal Issues:
After the liability ruling, Huntly Defendants applied for Justice Baker’s recusal, claiming her findings—particularly negative credibility assessments of Brent Newton Wolverton and comments on valuation—created a reasonable apprehension of bias. Casa Margarita argued the motion was a delay tactic.

Court’s Decision:
The court dismissed the recusal application, ruling that:

  • Judicial findings on credibility did not indicate bias.
  • Valuation comments related to oppression, not the valuation trial.
  • The motion lacked merit.

Costs Awarded:
The court ordered Huntly Defendants to pay Casa Margarita’s costs, finding the motion frivolous. The total cost amount was unspecified but was payable in any event of the cause.

Supreme Court of British Columbia
S190278
Corporate & commercial law
Plaintiff