A British Columbia court has ruled that the B.C. Securities Commission doesn’t have to pay the costs awarded on appeal, pending its own plan to appeal the case to the Supreme Court of Canada.

In a decision released Jan. 9, B.C.’s appeal court overturned the BCSC’s findings of fraud and misrepresentation against Carl Glenn Anderson and Douglas Victor Montaldi. It set aside the sanctions imposed on them by the commission and referred the issue of sanctions back to the commission for reconsideration on what was referred to as the public interest issue. Anderson and Montaldi were awarded costs of the appeal (about $18,500), which the BCSC is now seeking to stay.

The BCSC intends to appeal the lower court decision on the grounds that the court failed to apply the proper test to determine the appropriate standard of review for the decision of the BCSC, and that the court erred in its interpretation of the Securities Act.

Anderson and Montaldi argue that the grounds of appeal on which the director seeks leave do not raise matters of national importance that would merit review by the Supreme Court. And, they also say that the director has not shown that the balance of convenience favours the stay.

The court disagreed, siding with the commission. It accepts the director’s argument that there is “a serious question to be tried” in light of the importance to securities regulation. It also finds that Anderson and Montaldi may not be able to pay back the costs if they lose at the Supreme Court level. “I think it is clear that if the costs were now paid to Messrs. Anderson and Montaldi, they would not be able to repay the funds to the Director…”

It found that the balance of convenience favours the granting of the stay.