CIVIL PROCEDURE - Payment of money into court - Interpleader - Availability - Application - By stakeholder

Law360 Canada ( June 30, 2026, 9:34 AM EDT) -- Appeal by appellants from an order dismissing Tacora Resources Inc.’s (Tacora) interpleader application concerning quarterly mining royalties payable under a lease to 1128349 B.C. Ltd (112). Tacora received competing directions about a royalty payment of about $5.5 million from two rival groups, each claiming authority to speak for 112 following a disputed annual general meeting of Scully Royalty Inc., 112’s parent, and related proceedings in the Cayman Islands. One group, associated with Morrow, demanded payment to an account it identified and served a notice of default after payment was withheld. The other group, associated with MILFAM LLC and directors it said were newly elected, instructed Tacora not to pay on Morrow’s directions and proposed escrow or interpleader relief. Tacora applied for leave to pay the royalty into court and for a declaration that its liability would be extinguished on doing so. The application judge dismissed the application, holding that there were no adverse claims because there was only one contractual creditor, and that the Ontario court lacked jurisdiction because the underlying corporate control dispute would be decided elsewhere. Despite dismissing the application, he directed, on his own motion, that Tacora could satisfy its obligation by paying the royalty into the trust account of counsel acting for 112 pending Tacora bringing an interpleader application in another forum. The appellants and Tacora argued that the application judge misapplied the test for adverse claims, erred in declining jurisdiction, and acted improperly in granting unsolicited interim relief. 112 maintained that the application was properly dismissed, though it agreed the interim order should not stand....
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