The plaintiff brought a motion seeking to strike the defence of two defendants, obtain payment of $13,000 held in trust that had previously been ordered payable to a corporate defendant, and seek personal costs against the defendant’s solicitors.
The corporate defendant had been dissolved prior to earlier court orders but was in receivership, and an affidavit had mistakenly referred to it as being in receivership without mentioning the dissolution.
The court held that under s. 242(1) of the Ontario Business Corporations Act, proceedings against a dissolved corporation may continue and property of the corporation remains available to satisfy orders.
The dissolution did not invalidate earlier court orders or terminate the receivership, and the inadvertent misstatement about receivership did not justify setting aside the prior order.
The trust funds were ordered paid to the receiver and the plaintiff’s motion largely failed except for the uncontested striking of the other defendants’ defence.
