Background: Viking Air Limited, involved in manufacturing and selling aircraft, entered a fixed-price multi-year agreement with Cascade Aerospace Inc. in 2019 for integrating new technology into its Waterbomber Aircraft. Disputes arose over the certification of the avionics system provided by Rockwell Collins, leading Viking to request the return of the aircraft during discussions to terminate the agreement. Cascade returned one aircraft but retained the CL-215T, leading Viking to file for its return under Rule 10-1(4) and Section 57(1) of the Law and Equity Act.

The Injunction Order: Justice MacNaughton ordered Cascade to return the CL-215T and Viking to post $1,845,000 as security for outstanding invoices. Cascade sought to appeal this order, arguing the judge applied incorrect legal standards and omitted key factors.

Legal Arguments/Issues: Cascade argued the judge failed to apply the appropriate test under Rule 10-1(4) and Section 57(1) of the Law and Equity Act, adopted an incorrect standard for irreparable harm, and misapprehended the evidence. Viking maintained the judge applied the correct legal standards and opposed both the appeal and the stay.

Leave to Appeal: The Court granted leave to appeal, finding merit in Cascade’s proposed issues and significance to legal practice. However, the application for a stay was dismissed as Cascade did not demonstrate irreparable harm.

Total Costs/Awards: Viking was required to post $1,845,000 as security for the return of the CL-215T.