Summary: 1261271 B.C. Ltd. appealed against a lower court decision which found that the security interest it granted was oppressive towards the respondents. The court of appeal dismissed the appeal, agreeing with the application judge’s findings and reasoning.

Key Points:

• Oppression Remedy: The appeal centered on whether the security interest granted by 1261271 B.C. Ltd. was oppressive to the respondents. The application judge found it to be oppressive as it was granted in self-interest and with an intent to prejudice the respondents.
• Reasonable Expectations: The application judge noted that the respondents had set clear expectations that 1261271 B.C. Ltd.'s predecessor did not have unrestricted freedom regarding its actions with the respondent entities. These expectations were considered reasonable based on prior agreements and court orders.
• Court's Decision: The court of appeal found no reversible errors in the application judge's decision. It highlighted that the respondents' reasonable expectations were unfairly disregarded by the corporate conduct of 1261271 B.C. Ltd.

Outcome: The appeal was dismissed with a cost award of $15,000, including HST and disbursements, to the respondents. The court’s decision underscores the importance of respecting the reasonable expectations and interests of business partners in corporate conduct.