Annabelle Wai Ying Lui

Shareholders of a closely held private corporation sought a certificate of pending litigation against the former director's personal residence, alleging misappropriation of corporate funds.

The former director moved to discharge the CPL so that a scheduled property sale could close.

The court found a material non-disclosure on the ex parte motion — the moving parties failed to disclose the former director's responding affidavit explaining that his property had been pledged as security for the corporation's operating line of credit.

The court further found that the primary relief sought was repayment or damages, not a proprietary interest in land, and that the moving parties' interests could be adequately protected by having the net proceeds of sale paid into court.

The CPL was ordered discharged upon payment of net sale proceeds into court, with a disputed $49,990 charge in favour of the former director's law firm also to be paid into court pending further order.

Appeal from a trial judgment in a fraudulent conveyance action.

The trial judge found the appellants liable for participating in a civil conspiracy to defraud the respondent and to prevent her from realizing on a judgment against one of the defendants.

The trial judge awarded judgment against one defendant in the amount of $175,000 and against two other defendants in the amount of $60,000.

The appellants challenged the trial judge's findings regarding the scope of the proceedings, the facts concerning monies received, and their distribution.

The Court of Appeal upheld the trial judgment, finding the conspiracy finding was supported by the record and that the trial judge had broad remedial authority under the applicable legislation.