Rezek v. Canada
A-609-99
Stone J.A.
17/11/99
7 pp.
Appeal from Tax Court decision, exercising discretion, dismissing appellant's appeal (one of nine) on ground appellant refused to provide requested information and to answer question on examination for discovery-Nine appeals had been selected by parties to proceed as "lead cases" from among large number of similar appeals pending in T.C.C., each raising common issue: proper treatment for income tax purposes of certain hedging transactions and revenues and expenses arising there from-Total amount in issue in excess of $160,000,000-Appeal allowed; judgment applicable in eight other appeals-While appellate courts reluctant to interfere with exercise of discretion by trial judges, failure to honour alleged agreement to produce documents or answer disputed questions did not provide satisfactory basis for dismissing appeals and denying trial on merits-Tax Court Judge (T.C.J.) made significant omission in not considering second motion before him, in which it was alleged that respondent too, had failed to satisfy undertakings and to answer questions put to respondent's witness on discovery-If motion had been taken up by T.C.J. before disposing of motions to dismiss appeals, might have affected his judgment, in view of possibility respondent also in default in discovery process-T.C.J. failed to give sufficient weight to all relevant considerations in exercising discretion-Having regard to all circumstances, not in interests of justice that all appellants should be deprived of important right to have appeals heard and disposed of on merits.