Brian Somer

The appellant, a real estate company, appealed an order enforcing the respondent's rights under fitness equipment leases and general security agreements.

The respondent had leased fitness equipment to numbered companies operating fitness facilities in premises owned by the appellant.

When the lessees defaulted, the respondent sought to repossess the equipment, but the appellant prevented access and removed equipment to undisclosed locations.

The application judge granted broad declaratory relief and repossession rights.

The Court of Appeal upheld the order, finding no procedural unfairness, that the relief was consistent with the lease terms and PPSA provisions, and that the inventory schedules were necessary to account for equipment the appellant had moved among its properties.

The applicant, a funding organization, sought possession of fitness equipment leased to various numbered companies operating out of premises owned by the respondent landlord.

The leases were in default.

The respondent challenged the applicant's status, arguing the leases were not properly assigned from the original lessor.

The court found the assignment was valid and the applicant had the right to possession under the leases, the General Security Agreements, and the Personal Property Security Act.

The court granted the application, ordering the respondent to cease impeding the applicant's access to the equipment.

Following a non‑jury trial concerning a vehicle lease agreement, the plaintiff’s claim for damages was dismissed because the alleged debt was extinguished by the defendant’s prior bankruptcy after the plaintiff failed to prove fraud under s. 178(1)(d) and (e) of the Bankruptcy and Insolvency Act.

The successful defendant sought substantial indemnity costs on the basis that the plaintiff advanced allegations of fraud.

The court held that substantial indemnity costs were not justified, finding the amount claimed excessive and noting aspects of the defendant’s conduct that prolonged the trial.

Exercising its discretion under Rule 57 of the Rules of Civil Procedure, the court fixed partial indemnity costs at a reduced amount.

Costs were awarded to the defendant in the sum of $25,000 inclusive of fees, HST, and disbursements.

The plaintiff lessor sued for amounts allegedly owing under a commercial vehicle lease and the defendant denied signing the lease, alternatively asserting that any liability had been extinguished by bankruptcy.

The court found on a balance of probabilities that the defendant did sign the lease agreement and was liable under it.

However, the plaintiff failed to establish that the debt survived discharge under s. 178(1)(d) or (e) of the Bankruptcy and Insolvency Act, as the evidence did not prove fraud in a fiduciary capacity, false pretences, fraudulent misrepresentation, or wilful blindness by the bankrupt.

The debt was therefore extinguished by the defendant’s bankruptcy and the action failed.

The appellant appealed the motion judge's refusal to grant an adjournment.

The Court of Appeal dismissed the appeal, finding no error in the refusal given the history of the proceedings and the absence of any merit in the appellant's claim.

Costs were awarded to each respondent.