0081092 BC Ltd. v. Callahan
0081092 BC Ltd., formerly known as Shasta Properties Ltd.
Law Firm / Organization
Unrepresented
Edward James Callahan
Law Firm / Organization
Unrepresented
Robert Callahan
Law Firm / Organization
Rush Ihas Hardwick LLP
Lawyer(s)

Taylor-Marie Young

Bruce Callahan
Law Firm / Organization
Rush Ihas Hardwick LLP
Lawyer(s)

Taylor-Marie Young

Douglas Callahan
Law Firm / Organization
Kornfeld LLP
Lawyer(s)

Abbas H. Sabur

Callahan Property Group Ltd.
Law Firm / Organization
Rush Ihas Hardwick LLP
Lawyer(s)

Taylor-Marie Young

Bruce Callahan as trustee for the Callahan AE#3 Trust
Law Firm / Organization
Rush Ihas Hardwick LLP
Lawyer(s)

Taylor-Marie Young

Ernst & Young Inc. (as Liquidator)
Law Firm / Organization
Lawson Lundell LLP
Lawyer(s)

Anna Paczkowski

Background: The case "0081092 BC Ltd. v. Callahan" involved a dispute among the Callahan family over the management and financial dealings of the family-owned company, Shasta Properties Ltd. (now 0081092 BC Ltd.). Edward James Callahan initiated legal actions against his brothers Robert Callahan, Bruce Callahan, and Douglas Callahan, and the Callahan Property Group Ltd.

Legal Issues: The primary issues included breaches of fiduciary duty, excessive payment of directors' and management fees, and the proper liquidation and sale of corporate assets. Edward Callahan alleged his brothers paid themselves unreasonably high fees, estimated at around $3 million, and opposed their decisions regarding the liquidation of Shasta. The court had to determine whether to adjourn the trial of the derivative action and join it with the differential action, which sought a disproportionate share of Shasta's equity for Edward based on alleged agreements for differential interest.

Held: Associate Judge Robertson granted the defendants' application to adjourn the trial and ordered the joinder of the derivative and differential actions. The judge found significant overlap in factual and legal issues between the cases, emphasizing the risk of inconsistent rulings if tried separately. The decision aimed to ensure a fair trial and prevent unnecessary expense and complexity.

Costs and Awards: The court did not award costs thrown away due to the timing of the application. Instead, the costs of the parties were ordered to be in the cause, with the liquidator entitled to its costs in the ordinary course of the liquidation. Financial terms were not specified.

Supreme Court of British Columbia
S190277
Corporate & commercial law
Defendant