Edward Babin

The Mizrahi Defendants brought a motion to dismiss or stay the plaintiff's action based on a standstill provision in a Priority, Subordination and Standstill Agreement.

The plaintiff, a subordinated lender for a construction project, sued for $200 million in damages and other relief.

The court found that the plaintiff's claims fell squarely within the standstill provision, which prohibited enforcement actions until senior lenders were repaid.

The court rejected the plaintiff's argument that the enforceability of the agreement was in play, as it was not pleaded.

The action was stayed for 30 days to allow the plaintiff to draft a new statement of claim for claims not covered by the standstill provision, after which the action would be dismissed.

The appellant appealed a Notice of Disallowance issued by the trustee in bankruptcy of MF Global Canada Co. The appellant claimed the net positive balance of his futures account either on the day before the bankruptcy or on the date of bankruptcy.

The court dismissed the motion, finding that the decline in the account's value prior to bankruptcy was due to market forces, not a breach by the bankrupt.

Furthermore, the appellant had ignored margin calls exceeding his account balance, and the trustee was entitled to set off the appellant's debt against any amount owed.

The defendant brought an unsuccessful summary judgment motion and the plaintiffs sought costs of $37,610.84 on a partial indemnity basis.

The court declined to award costs to the plaintiffs, finding that the summary judgment motion was reasonably brought and the issues of damages and limitation periods would still need to be determined at trial.

The court ordered costs in the cause.

The defendant investment firm brought a motion for summary judgment to dismiss the plaintiffs' action as statute-barred.

The plaintiffs, who were victims of their former investment advisor's Ponzi scheme, argued they did not discover their claims against the firm until the advisor's fraud was exposed.

The court dismissed the motion, finding a genuine issue for trial regarding whether the plaintiffs, as allegedly unsophisticated investors, knew or ought to have known of their claims earlier through the exercise of reasonable diligence.

Following a four‑week civil trial involving wrongful dismissal, oppression claims, and counterclaims for breach of fiduciary duty and misuse of confidential information, the court determined costs.

The plaintiff’s claim for damages exceeding $1 million was dismissed, although he succeeded in establishing that he had been terminated rather than having resigned.

The defendants’ $2 million counterclaim was largely unsuccessful except for minor reimbursement of approximately $300 in expenses.

Applying s. 131 of the Courts of Justice Act and Rule 57.01 of the Rules of Civil Procedure, the court found success divided but concluded the defendants were the more successful parties overall.

Partial indemnity costs were awarded to the defendants, reduced to reflect divided success, unnecessary litigation steps, and excessive defence costs.

The plaintiff, former President of a private trust company, sued for wrongful dismissal and oppression after his employment ended amidst allegations of working for another company and improperly claiming expenses.

The court found that the plaintiff was terminated, not that he resigned.

However, the termination was justified for cause because the plaintiff breached his fiduciary duties by misrepresenting his role with another company and engaging in a pattern of claiming expenses from his employer while also deducting them on his income tax returns.

The oppression claim and the employer's counterclaim for misuse of confidential information were dismissed, though the employer was awarded reimbursement for specific improperly claimed expenses.

The plaintiffs and defendants were all victims of a Ponzi scheme orchestrated by an investment advisor.

The plaintiffs, who were late entrants to the scheme, provided bank drafts directly payable to the defendants, who were early entrants, under the mistaken belief they were investing in legitimate bridge financing.

When the scheme collapsed, the plaintiffs sued the defendants for the return of their money, alleging unjust enrichment and mistake of fact.

The plaintiffs brought a consolidated motion for summary judgment.

The court dismissed the motion, finding genuine issues for trial regarding whether the defendants were unjustly enriched or if the payments were made under a mistake of fact, and noting that the novel legal issues and ongoing bankruptcy proceedings required a full trial.

Former directors, officers, and consultants of Look Communications Inc. sought interim advancement of their legal fees to defend against an action brought by Look alleging breach of fiduciary duty regarding bonus and equity cancellation payments.

The court held that s. 124(4) of the CBCA applies to actions brought directly by the corporation, requiring court approval for advancement.

The court found Look established a strong prima facie case of mala fides against the directors and officers, rebutting the presumption of good faith.

Advancement was denied for all applicants except one employee, Dolgonos, whose entitlement arose under an indemnity agreement not subject to s. 124(4).