An Ontario appeal court has dismissed an appeal by the Crown for a new trial in its case against former Bre-X Minerals executive, John Felderhof.

Felderhof is facing eight counts of violating the Securities Act. The Ontario Securities Commission charged him with insider trading and authorizing or acquiescing in misleading press statements.

After 70 days of trial, counsel for the prosecution took the unusual step of applying to halt the prosecution. Counsel for the OSC, who are conducting the prosecution, sought to prohibit the continuation of the proceedings before Mr. Justice Hryn, to quash rulings he made and ask for an order that the trial begin anew before another judge of the Ontario Court of Justice. The prosecution alleged that the trial judge made a number of serious errors that deprived him of jurisdiction to proceed and undermined the appellant’s right to a fair trial.

Counsel for the OSC alleged that the trial judge failed in his duty to curb the uncivil conduct of the respondent’s counsel, Joe Groia. The prosecution also alleged that the trial judge did not made evidentiary rulings when he should have, which were necessary to the presentation of the prosecution case, and improperly interfered in the conduct of the prosecution case.

Judge Archie Campbell heard the application and dismissed it in 2002. He found no jurisdictional error. Today, the Ontario appeal court issued a decision supporting his conclusions.

The appeal court ruling said that Groia’s actions “did not deprive the prosecution of a fair trial.” It also found that the trial judge did not lose jurisdiction by failing to make evidentiary rulings.

It also ruled that the action of applying for a new trial was reasonable, so costs were not merited to the defence team.