In a family law proceeding, the applicant brought a motion for contempt against a lawyer who was not a party to the litigation but who held proceeds from the sale of the respondent’s business in trust.
A prior ex parte freezing order required the proceeds of sale to remain in trust pending further court order, except for payment to a secured creditor and legal fees.
Despite receiving the order and being warned not to breach it, the lawyer disbursed substantial funds to trade creditors, family members of the respondent, and others without seeking court approval.
The court held that the order was clear and unequivocal and that negotiations between counsel did not alter its binding effect.
Applying the contempt test, the court found that the lawyer knowingly and deliberately breached the order beyond a reasonable doubt.