Background:

Community Cannabis sought judicial review after being denied a cannabis sales licence, but the review was previously dismissed (Community Cannabis Inc v Cannabis Licensing Board, 2023 YKSC 57). The Board now sought special costs, alleging misconduct by Community Cannabis.

Issues:

1. Should costs be awarded for conduct involving the Yukon Liquor Corporation (YLC) and Yukon Montessori School?
2. Did Community Cannabis’ behavior towards the Board justify special costs?

Findings:

• Misconduct Allegations:

  • The Board claimed Community Cannabis misrepresented YLC’s position and falsely accused Montessori of operating a “rogue” school.
  • However, since YLC and Montessori did not participate in the costs application, the court found it inappropriate to grant costs.
  • The Board was not directly harmed by the alleged misconduct.

• Conduct Towards the Board:

  • The Board argued Community Cannabis made disparaging remarks and misrepresented legal precedents.
  • The court found the statements, while forceful, did not amount to “reprehensible conduct” necessary for awarding special costs.

Conclusion:

The court denied the Board’s request for costs, ruling that Community Cannabis' conduct did not meet the high standard required for such awards. The Board, as an administrative body, should not overstep in seeking punitive costs.

Outcome: Application for costs dismissed. No monetary award specified.