Background: RGN Management Limited Partnership obtained a garnishing order requiring Langara College to pay funds into court owed to 7th Light Education Group Inc. The order concerned two invoices: Invoice 1043, amounting to $53,781.30, which was conceded as debt, and Invoice 1044, amounting to $741,758.47, which 7th Light contested as a conditional advance.

Legal Arguments/Issues: 7th Light argued that Invoice 1044 was a conditional advance and not subject to garnishment under section 3(2) of the Court Order Enforcement Act. Alternatively, they sought the release of the funds under section 5, claiming they were not a debt or obligation. The chambers judge found the garnishing order valid under section 3 but concluded the funds under Invoice 1044 were subject to a Quistclose trust and could not be garnished. RGN appealed, arguing the judge erred by ordering the release of funds on a basis not raised by either party.

Held: The Court of Appeal allowed 7th Light to amend its response factum to include arguments from the cross-appeal, determining a cross-appeal was unnecessary. The procedural confusion arose from the judge’s order, which included both the outcome and reasons. The Court noted orders should only state the relief granted without including reasons or arguments.

Costs/Damages Awarded: The application to amend the response factum was allowed with costs awarded in favor of 7th Light Education Group Inc., totaling $741,758.47, to be paid out of court.