Border Capital faces limited interlocutory injuction in Dion dispute
Dion Entertainment Corp DIO
Shares issued 54,546,904 Oct 29 close $1.40
Fri 29 Oct 99 News Release
See Border Capital Corp (BOP) News Release
Mr. Michael Holley reports
The court has decided to grant a limited interlocutory injunction against
respondents, Border, IBC Investments Limited and their related parties
(Border group) in favour of the petitioners, Louis Dion, Leo Dion and
others (Dion group). The Dion group has been directed by the court to post
security in the amount of $1-million. As the court initially indicated that
it would give oral reasons for judgment on Nov. 2, 1999, the court has
suggested that counsel for the litigants use the time set for hearing on
Nov. 2, 1999, to settle the precise terms for a limited injunction to
reflect the court's findings, and consequences of the failure or inability
of the Dion group to post $1-million in security. Management for the Border
group will provide a further report following the court hearing on Nov, 2,
1999.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Dions ordered to post $1-million for injunction
Dion Entertainment Corp DIO
Shares issued 54,546,904 Oct 29 close $1.40
Fri 29 Oct 99 Street Wire
Also Border Capital Corp (BOP)
by Brent Mudry
Howe Street stock and bingo promoters Louis and Leo Dion have scored a
mixed win in court in their petition against Border Capital, IBC
Investments and their associated responsdents. In a 17-page decision
released Friday in the Supreme Court of British Columbia, Mr. Justice
Thomas Melnick ruled that the Dion brothers are entitled to an interim
injunction to preserve the status quo of a disputed arbitration agreement.
The judge, however, ordered the Dions and their associated private
companies to post a security deposit of $1-million. The speedy decision
comes a week after a two-day hearing ended on Oct. 22. Dion Entertainment
is not a party to the court petition.
Judge Melnick ruled that the Dions should provide a serious undertaking for
damages if the Border group ultimately wins the case. "I am not satisfied
that the petitioners have demonstrated that they have the financial ability
to give a meaningful undertaking," stated the judge. The Border group
requested a $6.8-million good-faith deposit, representing the amount Border
has invested to date, but Judge Melnick found that a smaller, but still
substantial, amount was more appropriate.
The judge noted that he originally indicated his plan to hand down oral
reasons on Tuesday, Nov. 2, but since he finished the job early, he invited
lawyers for both sides to meet in court that day to discuss the appropriate
wording for the injunction.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
