Nodran Ltd. v Sundowner Farms Ltd.
Nodran Ltd.
Law Firm / Organization
McDougall Gauley LLP
Lawyer(s)

Clayton B. Barry

Sundowner Farms Ltd.
Law Firm / Organization
Unrepresented
Intermar Drilling Ltd.
Law Firm / Organization
W Law LLP
Lawyer(s)

Nicholas P. Conlon

Mirage Holdings Ltd.
Law Firm / Organization
W Law LLP
Lawyer(s)

Nicholas P. Conlon

Murco Ltd.
Law Firm / Organization
Merchant Law Group LLP
Lawyer(s)

Timothy E. Turple

Case Overview:
The case  was a shareholder dispute involving a family-owned farm corporation, Sundowner Farms Ltd. The application arose from longstanding conflicts among the four equal shareholders, proxies for the Gordon brothers.

Legal Issues:
The central issue was whether Nodran Ltd., represented by Cathy Gordon (widow of Brian Gordon), could pursue a new application for liquidation of Sundowner Farms Ltd. under the Business Corporations Act, 2021 (SS 2021, c 6), or whether it constituted an abuse of process due to a similar prior action (the "First Application") initiated in 2007. Key disputes included allegations of shareholder oppression, improper financial management, unequal loan repayments, and lack of transparency.

Court's Decision:
Justice Gerecke struck the new application, finding it an abuse of process. The court held that the new action was substantially similar to the unresolved First Application, and the issues could be addressed through amended pleadings in the existing proceeding. The judge emphasized that liquidating Sundowner was a significant and final remedy requiring a holistic trial of the issues, which was already ordered in the earlier case.

Costs Awarded:
The court awarded costs totaling $10,000 to the successful respondents: $5,000 to Murco Ltd., and $5,000 jointly to Intermar Drilling Ltd. and Mirage Holdings Ltd. The amounts were payable by Nodran Ltd. within 30 days.

Court of King's Bench for Saskatchewan
KBG-PA-00172-2023
Corporate & commercial law
$ 10,000
Respondent