Aaron Hany George Boghossian

This decision addresses cross-motions for summary judgment in a case stemming from a failed condominium project.

The plaintiffs, investors in a syndicated loan secured by a mortgage, sought judgment against the developer and its principal for their investment losses, relying on a contractual guarantee.

The defendants sought to dismiss the action, arguing the guarantee was not binding and the plaintiffs assumed investment risks.

The court granted the plaintiffs' motion, finding that the loan commitment, which included a guarantee from the developer and its principal, was incorporated into the trust agreement governing the syndicated loan.

The court emphasized the trustee's fiduciary duty to enforce the guarantee and allowed the beneficiaries (plaintiffs) to enforce it directly due to the trustee's failure to act.

The court also made adverse inferences against the defendants due to their litigation conduct, including refusal to answer questions and produce witnesses.

The Court of Appeal for Ontario dismissed an appeal by CTO Boost Inc. against a summary judgment enforcing a settlement agreement with Idea Notion Development Inc. CTO had repudiated the settlement, claiming fraudulent invoices, after accepting an offer.

The appeal challenged the admissibility of "without prejudice" communications, the motion judge's evidence analysis, the fraudulent misrepresentation defence, and the exercise of discretion.

The Court affirmed the motion judge's findings, holding that "without prejudice" documents were admissible to prove the settlement's existence and that CTO entered the agreement with knowledge of potential discrepancies.