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     T-2077-96

Between:

     BYRDYS & WORMS ENTERPRISES, INC.,

     Applicant,

     - and -

     MINISTER OF NATIONAL REVENUE,

     Respondent.

     UPON MOTION, dated the 1st day of October, 1997, on behalf of the Applicant, pursuant to Rules 344 and 1618 of the Federal Court Rules, for:

a)      an Order that the Respondent pay to the Applicant costs on a Solicitor/Client basis, or on such other basis as might be found by the Court to be reasonable.

     AND UPON ORAL APPLICATION made October 16, 1997, on behalf of the Respondent, for:

a)      an Order that the Applicant pay to the Respondent costs on a Solicitor/Client basis, or on such other basis as might be found by the Court to be reasonable.

     ORDER AND REASONS FOR ORDER

     Rule 1618 of the Federal Court Rules states that:

         "No costs shall be payable in respect of an application for judicial review unless the Court, for special reasons, so orders."         

     Since I have not been persuaded that there are special reasons justifying the award of costs, this motion shall be denied.

     On the evidence before me it is clear that the Respondent's defence or opposition to the judicial review application was one made in good faith. Further it cannot be said that the Respondent took an unreasonable position in regard to the issue raised in these proceedings.

     Perhaps when the Respondent, and its counsel, came to the conclusion that the point at issue ought to be conceded, the matter could have been better handled in terms of communicating that conclusion and the reasons for that conclusion to the Applicant. However, that is not, in my view, a sufficient reason to allow costs against the Respondent.

                             (Sgd.) "Marc Nadon"

                                 Judge

October 16, 1997

Vancouver, British Columbia

     NAMES OF COUNSEL AND SOLICITORS OF RECORD

STYLE OF CAUSE:          BYRDYS & WORMS ENTERPRISES INC.

                     - and -

                     MINISTER OF NATIONAL REVENUE

COURT NO.:              T-2077-96

PLACE OF HEARING:          Vancouver, BC

DATE OF HEARING:          October 16, 1997

ORDER AND REASONS FOR ORDER OF NADON, J.

dated October 16, 1997

APPEARANCES:

     Mr. Larry Smeets              for Applicant

     Mr. Dan Kiselbach              for Respondent

SOLICITORS OF RECORD:

     MacDonald, Boyle & Jeffery      for Applicant

     Langley, BC

     Swinton & Company          for Respondent

     Vancouver, BC


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