Background:
The case arose from a dispute over a registered easement on property owned by Arbutus Bay Estates Ltd., which allowed public access to a government-operated wharf in Horton Bay, British Columbia. Arbutus Bay challenged the validity of the easement, alleging it interfered with its riparian rights and sought to cancel it. The easement was ultimately rectified by the courts to reflect the original intent of the parties.

Legal Arguments and Issues:
Arbutus Bay alleged that Canada, the Capital Regional District (CRD), and British Columbia failed to disclose a prior agreement to decommission the wharf during earlier litigation, which it argued constituted fraud on the court. The company claimed this agreement would have made litigation unnecessary and sought damages for conspiracy and procedural impropriety. The court addressed whether the alleged failure to disclose was relevant to rectification of the easement and if the claims constituted an abuse of process.

Judgment and Awards:
The Court of Appeal upheld the dismissal of Arbutus Bay’s claims, finding no viable cause of action and deeming the case vexatious and an abuse of process. The court noted that the wharf remained operational, and the alleged agreement was irrelevant to the earlier litigation.

Costs and Awards:
The respondents, Canada, the CRD, and British Columbia, were awarded costs. Previous judgments had included nominal damages of $7,500 for a minor encroachment, but this was overturned, with Canada and the CRD recovering costs of the prior appeal at Scale B.