The taxpayer, which held 32% of the outstanding common shares of another privately owned corporation ("Kruger") brought a statutory oppression remedy against Kruger as a result of Kruger ceasing to pay significant dividends on its shares. In addition to seeking the payment of the special dividend and a resumption of the ordinary dividends, alternative remedies were requested in order to bring additional pressure to bear on Kruger. The action was settled by Kruger agreeing to redeem the taxpayer's common shares for a substantial amount.
In finding that various legal and other fees incurred by the taxpayer in connection with the oppression remedy and various collateral actions were deductible, Archambault T.C.J. noted that the taxpayer's purpose was to receive more income for a relatively short period of time and that in applying for a remedy against oppression, the taxpayer was only exercising its right created by a statute rather than seeking the creation of a new right.