Arthur Douglas Burns

The plaintiff, Electromart (Ontario) Inc., brought an ex parte motion seeking extraordinary relief including a Mareva injunction, a Norwich order, a certificate of pending litigation, and the delivery up of electronic devices.

The plaintiff alleged substantial fraud by two former employees, John Henry Fabianiak and Penny Ann Graziotto, and their company, Current Electrical Supply Inc., involving unreported sales and diversion of funds exceeding $300,000.

The court found a strong prima facie case of fraud and inferred a real risk of asset dissipation, granting a 10-day Mareva injunction.

Other requested relief was declined without notice to the defendants.

The plaintiff initiated an action alleging fraud, deceit, and misrepresentation against the defendants concerning a property transaction and mortgage.

Despite early settlement offers from the defendants, the plaintiff did not accept them.

The action was ultimately dismissed on consent immediately prior to a scheduled summary judgment motion.

The court, in this costs ruling, awarded the defendants full indemnity costs, determining that the plaintiff's allegations were ill-founded and significantly detrimental to the defendants' professional reputations, thereby justifying a higher scale of costs.