Brent Pearce

The appellant appealed a decision refusing to set aside a default judgment.

She argued the judgment was signed irregularly before the 20-day service period elapsed and that she had a defence on the merits.

The Court of Appeal dismissed the appeal, finding that while the judgment was signed irregularly, the appellant suffered no prejudice, and relief against the irregularity was granted under Rule 2.01.

Furthermore, the appellant had no defence on the merits as it was undisputed she received $600,000 from the sale of her property.

A cheque‑cashing company sought to recover losses arising from a fraudulent mortgage scheme and the negotiation of a bank draft bearing a forged endorsement.

The plaintiff alleged negligence and fraud against multiple parties involved in the mortgage transaction, including the property owner, a lawyer, a lender, and a relative of the homeowners.

The court found that the homeowners were not involved in the fraud and dismissed claims against them and other defendants, including the lawyer and lender.

The court declined to recognize a novel duty of care owed by the drawer of a bank draft to a subsequent negotiator and held that the plaintiff’s loss arose from the strict liability tort of conversion when the draft with a forged endorsement was negotiated.

Liability was established only against the relative who participated in the mortgage fraud.

The plaintiff sought indemnification for deposit refunds paid to purchasers after a registered home builder entered agreements to construct homes despite lacking a valid registration under the Ontario New Home Warranties Plan Act.

The court found the builder fundamentally breached twenty-two Agreements of Purchase and Sale by contracting without legal capacity to construct the homes.

As a result, purchasers were entitled to statutory deposit refunds under s. 14 of the Act.

The court rejected arguments that certain payments were loans rather than deposits and held that the indemnitor’s personal indemnity obligation was not reduced by a separate surety bond.

Judgment was granted for the refunded deposits, administrative fees, and statutory interest.

The respondent supplier manufactured custom doors for the appellant subcontractor, who failed to pay.

The supplier claimed breach of trust under s. 8(1) of the Construction Lien Act against the subcontractor and its principals.

The trial judge dismissed the trust claim because the supplier did not know the specific improvements where the doors were installed.

The Divisional Court allowed the appeal.

The Court of Appeal dismissed the appellants' appeal, holding that s. 8(1) does not require a supplier to intend that materials be incorporated into a known and specific improvement at the time of supply.

A link to the improvement is sufficient, and in this case, the link was established because the subcontractor deliberately frustrated the supplier's attempts to trace the materials.

The appellants appealed an order refusing to set aside a consent order.

The Court of Appeal allowed the appeal, finding the motion judge erred in principle by holding her discretion was circumscribed by the factors in Chitel v. Rothbart.

The Court held the discretion is broader and should be exercised to achieve the justice of the case, noting reasonable grounds to question the default judgment and that funds were available before the return date of the motion.

The appellant supplier appealed the dismissal of its breach of trust claim against the individual directors and an employee of a defunct contractor under s. 8 of the Construction Lien Act.

The trial judge had dismissed the claim, relying on a previous decision to hold that the supplier must intend the materials to be used for a known and identified improvement.

The Divisional Court allowed the appeal, distinguishing the previous decision and holding that the plain language of the Act does not require such intent.

The Court found the directors and the employee who had effective control of accounting jointly and severally liable for the breach of trust.