Crystal Li

The Proposal Trustee sought directions from the court regarding the procedure for determining a complex proof of claim filed by Maria Athanasoulis, comprising a wrongful dismissal claim and a significant profit share claim, within the context of a court-approved proposal under the Bankruptcy and Insolvency Act.

The motion addressed disagreements among stakeholders (Athanasoulis, Sponsor, and Limited Partners) on how to proceed with the claim's determination and subsequent appeal, particularly concerning the scope of evidence, the nature of the appeal (true appeal vs. de novo), and the standing of the Limited Partners.

The court provided detailed directions to ensure procedural fairness and efficiency, deferring the valuation of future-oriented damages until after the provability of the profit share claim is determined on appeal, and limiting the Limited Partners' standing to specific issues.

The plaintiffs brought a motion to certify a class action against seven discount brokers, alleging that their receipt of mutual fund trailing commissions prior to the 2022 prohibition was illegal.

The court found that the plaintiffs failed to satisfy the 'some evidence' requirement to show that the practice contravened applicable Canadian securities law.

The evidence filed by the plaintiffs themselves demonstrated that the practice, while controversial, was not illegal before the regulatory amendments took effect.

The motion for certification was dismissed.

The Jewish Foundation of Greater Toronto (Foundation) moved to dismiss or stay a bankruptcy application brought by The Joseph Lebovic Charitable Foundation (JLCF).

JLCF alleged the Foundation was indebted to it for over $15 million from a Donor Advised Fund (DAF) and had failed to meet its liabilities.

The court found no debtor/creditor relationship, as the funds were irrevocable gifts, not debts.

It also found no evidence the Foundation was unable to pay its debts, noting its excellent financial health.

The court determined that no act of bankruptcy occurred and that the JLCF's application, brought as a single creditor, lacked special circumstances.

The court further found the bankruptcy application to be an abuse of process, brought for the collateral purpose of pressuring the Foundation to distribute funds, rather than for a legitimate bankruptcy purpose.

The Foundation's motion to dismiss was granted, and the bankruptcy application was dismissed.

The applicant, Gregory Zentner, sought certification of a class action against GFA World and related entities, alleging fraud and misappropriation of charitable donations.

The defendants brought a cross-motion for summary judgment to dismiss the claim on limitation grounds.

The court dismissed Zentner's motion for certification, finding that the pleadings did not disclose a cause of action because the donations were unencumbered gifts, meaning donors did not suffer a compensable loss recoverable through civil action.

The court also found insufficient factual basis for common issues, particularly regarding reliance and causation.

However, the defendants' summary judgment motion was also dismissed, as there remained a genuine issue requiring a trial concerning when Zentner discovered, or reasonably ought to have discovered, the material facts of his claim for limitation purposes.

The defendant brought a motion following a trial to seal certain exhibits to protect litigation privilege related to a separate class proceeding.

The plaintiffs opposed the motion.

The court noted that litigation privilege exists for the benefit of the plaintiff class in the separate proceeding, and therefore class counsel should have the opportunity to waive or defend it.

The motion was adjourned to be brought back with formal notice to class counsel.

Following a trial where the plaintiffs were awarded $328,396.82 for breach of contract, the parties made submissions on costs.

The plaintiffs sought costs of approximately $500,000, while the defendant sought costs from the date of its Rule 49 offer.

The court noted that the plaintiffs' costs were driven by multiple unmeritorious causes of action and that the defendant's offer triggered the costs consequences of Rule 49.10(2).

Balancing the plaintiffs' partial success against the defendant's offer and the plaintiffs' unreasonable litigation conduct, the court exercised its discretion to award no costs to either party.

The plaintiff, a former law student, conceived the idea of using a class proceeding to resolve the issue of unpaid royalties to unlocatable musicians.

She brought the idea to the Canadian Internet Policy and Public Interest Clinic (CIPPIC) at the University of Ottawa, which formed a consortium with class counsel.

The plaintiff and CIPPIC entered into an agreement guaranteeing her 5% of the counsel fees awarded.

The plaintiff later sued the university for $3.5 million, alleging breach of copyright, breach of fiduciary duty, and unjust enrichment, arguing she was entitled to a larger share.

The court dismissed the tort and equitable claims, finding no breach of copyright or fiduciary duty, and upheld the written agreement as binding and reasonable.

The plaintiff was awarded $328,396.82, representing her agreed 5% share of the counsel fees.

The plaintiff subcontractor sought payment from the owner's holdback funds after the general contractor failed to pay for work on a restaurant construction project.

The court determined that the contract between the owner and general contractor was not a fixed-price contract but rather a costs-plus arrangement, meaning the owner's 10% holdback obligation was calculated based on the total actual costs incurred.

The court also found the owner was not liable for a further notice holdback because it did not receive written notice of the liens in the prescribed form.

Finally, the court interpreted trust agreements between the owner and other subcontractors who had discharged their liens, awarding them payments from the trust funds based on the specific terms of their respective agreements.