The Canadian Imperial Bank of Commerce (CIBC) brought a motion against Samuel J. Berkovits (debtor) and 1539058 Ontario Inc. (garnishee) to enforce a judgment via garnishment.
CIBC argued that the garnishee's statement was materially false and misleading, effectively amounting to no statement at all, due to late delivery, omissions, and a lack of disclosure regarding payments and reimbursements to the debtor.
The court found that the debtor and garnishee had arranged their finances to avoid garnishment.
The court deemed the garnishee's statement materially deficient and ordered the garnishee to provide extensive documentation regarding all compensation, payments, and personal expenses paid on behalf of the debtor.
The determination of the final amount payable by the garnishee was adjourned pending this disclosure.