Case Overview:
The case involved an appeal in the British Columbia Court of Appeal by Mark Morabito and Global Crossing Airlines Group Inc. (formerly Canada Jetlines Ltd.) against the Executive Director of the British Columbia Securities Commission and the Commission itself. The appeal challenged procedural fairness and abuse of process in a securities law matter.

Background:
In 2018, the British Columbia Securities Commission investigated Morabito for alleged insider trading after he transferred shares to his spouse. In 2023, Morabito and Jetlines sought to stay the proceedings, arguing abuse of process due to alleged misconduct by investigators, including intrusive inquiries and procedural unfairness.

Legal Issues and Arguments:
The appellants argued the investigation and hearing process violated principles of procedural fairness, including:

• The Commission’s refusal to allow cross-examination of key investigators.

• The executive director's failure to disclose the terminal illness of a key witness (former Jetlines CEO Stanley Gadek) before his death.

The respondents maintained the investigation was proper and that the abuse claims were unfounded.

Decision and Costs:
The Court of Appeal allowed the appeal, finding procedural errors, including the Commission’s use of a flawed "blended" hearing process that impeded the appellants’ ability to pursue abuse claims. The case was remitted to a newly constituted hearing panel.

No damages or cost awards were specified for the successful appellants. The primary outcome was procedural correction and a new hearing order.