Background: Edward Callahan appealed against an order approving the sales process for assets of 0081092 B.C. Ltd. The company, owned by Edward and his brothers (Bruce, Robert, and Douglas Callahan), was in liquidation. Ernst & Young acted as the liquidator. Edward was the only shareholder opposing the liquidation.

Applications for Security for Costs: Two applications for security for costs, each seeking $25,000, were brought by Robert, Bruce, and the Callahan AE #3 Trust, and Douglas Callahan.

Legal Arguments/Issues:

• The respondents argued that Edward Callahan's litigious history and failure to respond to previous costs orders justified the security for costs.
• Edward argued he had sufficient financial means and that his appeal had merit.
• The court considered Edward’s history of unpaid costs orders, his financial capacity, and the merits of the appeal.

Court's Analysis:

• Financial Means: The court acknowledged Edward's substantial financial means, including a $1.4 million annual income and significant business interests.
• Merits of the Appeal: The court found the appeal had some merit but was challenging due to the deferential standard of review.
• Costs Recovery: Given Edward's history, the court recognized difficulties in recovering costs but noted all parties were sophisticated litigants.

Disposition: The court ordered Edward Callahan to post $15,000 as security for costs within seven days. Failure to do so could lead to the dismissal of his appeal. Costs of both applications were ordered to be in the cause.

Total Amount of Costs/Award: $15,000 in security for costs was ordered.