CMT ordered to pay $74K in e-gaming lawsuit costs

Capital Markets Technologies has been ordered to pay $73,978 in legal costs, including $35,036 to the P.E.I. government, following the company's thus far unsuccessful bid to sue the province for millions of dollars over an alleged breach of good faith in dealings connected to a potential financial services centre.

In February, Supreme Court Justice Gordon Campbell tossed out CMT's statement of claim, calling it "a long, rambling narrative replete with irrelevant and immaterial facts, evidence, opinion, argument and speculation" and an abuse of the court process.

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Campbell did leave an opportunity for the company to file a new statement of claim, something the company has said it plans to do.

In his decision on costs, delivered May 20, Justice Campbell also awarded costs of $31,685 to defendants Paul Jenkins and 7628382 Canada Corporation, and a further $7257 to defendants Garth Jenkins and Ventis Technology.

Suit filed in April

Capital Markets Technologies filed its suit in April of 2015, alleging the P.E.I. government acted in breach of good faith and failed to act honestly in its dealings with the company.

CMT said it was involved in discussions with the province over e-gaming, something lawyers for the province denied in their statement of defence. The e-gaming initiative was abandoned in February 2012.

In July 2012, the province signed a memorandum of understanding with a numbered company — 7645686 Canada Inc, known as Trinity Bay Technologies in the MOU — to develop a financial services centre. CMT said 7645686 is its wholly-owned subsidiary.

Preliminary motions were argued in the case in November 2015 but the suit never went to trial.

Also in November 2015, Finance Minister Allen Roach told the P.E.I. Legislative Assembly government's legal costs on the e-gaming file to date were $118,000.

The costs awarded by Justice Campbell were on a partial indemnity basis, meaning they don't cover the full costs those named in the suit have incurred in defending themselves.