Background:
The case arose from a business relationship in the vehicle resale industry. Herdson, a minority shareholder in XCar Inc., alleged minority shareholder oppression and breach of fiduciary duty by Fortin and Enslen, claiming he was not paid one-third of XCar’s profits. A judgment in Herdson’s favor was previously rendered in Washington State, ordering a monetary award of USD $4.2 million plus 12% annual interest.

Legal Issues:
The key issue in British Columbia was whether to extend a Mareva injunction, which freezes the defendants’ assets. The defendants opposed the injunction, arguing material non-disclosure by Herdson in the ex parte hearing and denying beneficial ownership of certain properties in British Columbia. The court also considered whether cross-examination on asset lists should be allowed.

Court Decision:
The court extended the Mareva injunction, finding a strong prima facie case in favor of Herdson and a risk of asset dissipation. The court ordered cross-examination on the defendants’ asset lists and required Herdson to post security.

Costs:
No specific costs or award were given at this stage; costs were ordered to be in the cause, meaning determined later based on the final outcome.