Never-say-die businessman Karlheinz Schreiber has lost one more round in his decade-long fight against extradition to Germany, where he faces charges of fraud, bribery, corruption and tax evasion.

During a hearing Friday, government lawyers asked the Ontario Court of Appeal to quash Schreiber's latest bid and the court agreed in a decision released just hours later.

Schreiber's lawyer, Edward Greenspan, wanted a judicial review of what he said is Justice Minister Rob Nicholson's failure to respond to a submission he made to the minister in April.

In the April 20 letter, Greenspan said Canada's extradition treaty with Germany was never ratified, and may not be enforceable. But at the same time, Greenspan maintains the treaty -- if enforceable -- permits German nationals to be tried in Canada.

Despite repeated attempts, Greenspan said he has not been able to get an answer from Nicholson, other than to say the minister is considering the matter.

"Why is it so difficult to get a response?" Greenspan said in court.

However, in one letter from the minister Greenspan suggested the wording leads one to believe Nicholson had already reached a decision, which should therefore be subject to judicial review.

"The minister of justice is playing word games with us," Greenspan said.

He said he believes Nicholson plans to extradite Schreiber -- a Canadian citizen -- without giving him a decision on the treaty issue, though Greenspan admitted Nicholson has no legal obligation to respond to late submissions, such as the one made on April 20.

Department of Justice lawyers say the minister has repeatedly said he is still considering the submission, and there was "absolutely no factual basis" for this latest bid.

"While this application is creative and inventive it's based on fiction," government lawyers told the court.

The panel of Appeal Court judges agreed, saying the evidence doesn't support Schreiber's claim that Nicholson's failure to so far respond to the submissions means he never will.

"It is clear that the minister has given an unqualified commitment to Mr. Schreiber's counsel to respond to Mr. Schreiber's further submissions, regardless of whether the minister is legally obliged to do so," the panel wrote in its decision.

"There is no reason on this record to doubt that the minister will honour his written commitment."

But Greenspan saw a silver lining in the decision. Wording stating "it must be presumed that the minister's response will accord with Mr. Schreiber's statutory and charter rights," leaves room for appeal, Greenspan said.

"They're giving Mr. Schreiber the right to appeal the minister's response, which is what we were seeking," he said in a telephone interview Friday.

As for Schreiber's next steps, Greenspan said they await Nicholson's response.

"Once that decision comes, if it's in our favour then he will not be extradited," he said. "If it's not in our favour then we will appeal."

The government has already promised not to extradite Schreiber until the conclusion of the inquiry looking into his dealings with former prime minister Brian Mulroney, expected in late July. The report is then due Dec. 31.

Still, Greenspan said he worries Schreiber will be whisked away in the dead of night before Nicholson responds to his submissions. Once he is extradited the court has no jurisdiction, he said.

"The moment he's in the air it's over," Greenspan said in court.

Justice James MacPherson replied, "They can't put him in the air before you get a response."

Greenspan asked why not and MacPherson said, "they shouldn't."

"There is no sanction against the minister should he just send (Schreiber) out of Canada," Greenspan said.

Schreiber was arrested under the Extradition Act in August 1999 and has been vigorously fighting to stay in Canada, through what Department of Justice lawyers called "legal acrobatics."

"This isn't about getting a response from the minister," lawyer Richard Kramer told court.

"Mr. Schreiber wants to find a way to permanently stay his extradition."

In arguing to quash Schreiber's latest motion, Kramer said if it was granted, it would in effect usurp the extradition process.

"We will never be able to extradite anyone ever again," he said.

"They will simply be able to hop on the bandwagon and play this game."

Greenspan, a prominent Toronto defence lawyer who has handled many high-profile cases, bristled at the suggestion.

"I'm tired of hearing from them that I'm strategizing so (Schreiber) could never ever get extradited," Greenspan said, taking particular exception to the word "play."

"I never play," he said. "I do not make arguments that are not grounded in law."