The Globe and Mail reports in its Friday edition that former landlords of Hudson's Bay are awaiting a court decision on a motion seeking $2.4-million from the failed retailer to cover costs in the legal battle that led to the court rejecting a B.C. billionaire's plan to take over more than two dozen Bay store leases. The Globe's Susan Krashinsky writes that as Hudson's Bay auctioned off its assets in an attempt to recoup money to pay back some of its debts, real estate executive Weihong (Ruby) Liu won the bidding last spring for 28 store leases across the country. But her plan to launch a chain of department stores named after herself was opposed by the landlords. They argued her plan was "doomed to fail" because her financial projections were unrealistic, and because Ms. Liu had no experience running a retail chain of that size. A judge decided against the deal last October. Landlords now argue they are owed legal costs because the case was "wholly avoidable." The landlords are arguing that the Ruby Liu dispute was unusually "adversarial," and that companies should not be protected under CCAA for "unreasonable litigation conduct." (Hudson's Bay sold its name and other intellectual property to Canadian Tire last year.)
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