Executive Summary: Key Legal and Evidentiary Issues

• British Columbia courts issued sealing orders over sensitive information filed by Mr. Dempsey, which he later re-filed in Nova Scotia enforcement proceedings.

• Mr. Dempsey was declared a vexatious litigant and found in contempt by B.C. courts for violating sealing orders and disclosing confidential materials to third parties.

• Pagefreezer and Mr. Riedijk obtained enforcement orders in Nova Scotia for two cost awards totaling $336,852.64.

• Mr. Dempsey was held in contempt by Nova Scotia courts for refusing to submit to discovery in aid of execution and served a 30-day custodial sentence.

• The Nova Scotia court emphasized judicial comity and upheld sealing decisions from other jurisdictions, rejecting Mr. Dempsey’s attempts to re-litigate settled matters.

• The permanent sealing order was granted under the Sherman Estate test due to the serious risk to judicial comity, lack of alternatives, and proportionality of the remedy.

Background and facts of the case

This case arises from a prolonged legal battle between Nathan K. Dempsey and Pagefreezer Software Inc., a private technology company based in Vancouver, British Columbia, and its CEO, Michael Riedijk. Mr. Dempsey was a former employee and shareholder of Pagefreezer. The initial dispute began in August 2021, when Mr. Dempsey filed an action in the British Columbia Supreme Court alleging oppression. That matter was resolved in September 2021 through a settlement agreement.

In February 2022, Mr. Dempsey initiated a second proceeding in B.C. to set aside the settlement agreement. This litigation evolved into serious allegations including fraud, criminality, perjury, and harassment. Multiple courts in British Columbia, including the Court of Appeal, issued sealing orders to protect sensitive information filed by Mr. Dempsey. He failed to comply with these orders, leading to findings of contempt and the imposition of significant cost awards.

On November 3, 2022, the British Columbia Court of Appeal (Marchand, J.A.) ordered Mr. Dempsey to pay a total of $41,271.53 in costs for contempt, consisting of $4,545.44 in ordinary costs and $36,726.09 in special costs. This is referred to as the “Contempt Costs Award.” On November 16, 2023, the Registrar of the British Columbia Supreme Court assessed further special costs against Mr. Dempsey in the amount of $295,581.11, known as the “Special Costs Award.”

Following his relocation to Nova Scotia, Pagefreezer and Mr. Riedijk sought to enforce the B.C. cost awards under Nova Scotia’s Enforcement of Canadian Judgment and Decrees Act. Two enforcement proceedings were initiated:

• Hfx No. 523054: The Contempt Costs Award was registered on April 17, 2023, and an Execution Order issued on April 27, 2023.

• Hfx No. 529459: The Special Costs Award was registered on December 14, 2023, and an Execution Order issued on January 22, 2024.

Mr. Dempsey attempted to stay enforcement of both execution orders, but both motions were dismissed—on July 21, 2023 (2023 NSSC 240) and March 21, 2024, respectively. The Nova Scotia Court of Appeal upheld both dismissals. Mr. Dempsey also failed to post required security for costs in the appeal of the Special Costs Award enforcement, resulting in its summary dismissal on May 24, 2024.

Mr. Dempsey was found in contempt in Nova Scotia for refusing to comply with discovery in aid of execution. On July 7, 2024, Norton, J. found him in contempt (2025 NSSC 205) and sentenced him on August 15, 2024, to a 30-day custodial term, which he served instead of purging the contempt by attending discovery (2024 NSSC 233).

Legal proceedings and sealing orders

Mr. Dempsey continued to file affidavits and submissions in Nova Scotia that included confidential material previously sealed in British Columbia. On August 7, 2024, the Nova Scotia Court of Appeal sealed its file relating to Mr. Dempsey’s affidavits (2024 NSCA 76).

The present decision—2025 NSSC 47—addresses a motion by Pagefreezer and Mr. Riedijk to permanently seal the Nova Scotia Supreme Court file in Hfx No. 529459. Justice Keith granted the motion, applying the test from Sherman Estate v. Donovan, 2021 SCC 25. He found that:

1. The continued use of sealed material posed a serious risk to judicial comity, an important public interest.

2. There were no reasonable alternatives to a full sealing order, given the interwoven nature of the materials.

3. The sealing order was proportionate, as the Nova Scotia proceedings focused solely on enforcement and not on the merits of the prior claims.

Mr. Dempsey had argued that sealing the file concealed scandal and criminality involving Pagefreezer, Riedijk, and others. He submitted affidavits alleging a conspiracy, harassment, and even death threats. However, the Court held that his concerns were not grounds to disregard final, binding judgments and prior sealing orders.

Outcome

Justice Keith concluded that the Sherman Estate criteria were fully satisfied. He granted the motion for a permanent sealing order and awarded Pagefreezer and Mr. Riedijk $500 in costs, payable by Mr. Dempsey forthwith. The Court reaffirmed that enforcement proceedings cannot serve as a vehicle to reargue settled matters or circumvent sealing orders from other jurisdictions.