The appellants, parents of a brain-injured son, appealed a trial judge's decision on the passing of accounts for a trust they administered.
The trial judge found significant mismanagement, including a failure to account for over $165,000, fabrication of receipts, and improper cash administration, ordering them to repay funds, prejudgment interest, and costs.
The appellants challenged the disallowance of expenses, the failure to consider quantum meruit/equitable set-off, the denial of legal fee indemnity, and prejudgment interest calculation.
The respondent cross-appealed, arguing the accounts should not have been passed given the breaches and that no trustee compensation should have been awarded.
The Court of Appeal largely affirmed the trial judge's findings, making only minor adjustments for calculation errors, and dismissed the cross-appeal, emphasizing the high onus on trustees to account and the deference owed to trial judges' factual findings in such complex cases.
