Emma Parry

The appellants appealed a trial judgment that granted declaratory relief to the respondents and dismissed the appellants' counterclaim for fees.

The appeal focused on whether management agreements were unauthorized and if the respondents were estopped from arguing their invalidity.

The Court of Appeal found no palpable and overriding error in the trial judge's interpretation of the agreements or her finding on estoppel.

The appeal was dismissed, and leave to appeal the costs order was also dismissed.

The plaintiff, John Kozak, brought an interim preservation of property motion seeking to restrain the defendant, Rebecca Russo, from dissipating shares of SolarBank Corporation and related proceeds, which Kozak claimed were held in trust for him.

Russo, self-represented and studying abroad, did not appear but had requested an adjournment.

The court validated service and denied the adjournment due to a clear risk of asset dissipation.

Applying Rules 45.01 and 45.02, the court found a serious issue to be tried and that the balance of convenience favored granting the order, given the Declaration of Trust, Russo's stated intent to move assets, and her presence in a foreign jurisdiction.

The motion was granted, and costs were awarded to the plaintiff.

The plaintiffs, including a corporate entity and Dr. Earl Schwartz, brought a summary judgment motion seeking a declaration that a medical office building they co-owned with the defendants (Dr. Martin Schwartz and Susan Schwartz) was a partnership asset, and to compel the defendants to sell their share to the corporate plaintiff at an appraised value.

The defendants denied the existence of a partnership and sought a sale of the property under the Partition Act.

The court dismissed the plaintiffs' partnership claim, finding that the co-owners did not operate the building as a business with a view to profit, but rather primarily for their own professional use at cost.

The court ordered the sale of the property by the defendants on the open market and determined a financial reconciliation for ownership expenses, to be paid from the sale proceeds.

The plaintiffs' claim for punitive damages was also dismissed.

This endorsement addresses the costs of an eight-day trial where the plaintiffs were entirely successful in their claims and in dismissing the defendants' counterclaim.

The plaintiffs sought substantial indemnity costs, arguing the defendants' conduct, including unsubstantiated fraud allegations and disclosure failures, warranted an elevated scale.

The defendants opposed the quantum and scale, and the plaintiffs also sought costs against the defendants' principal, Mr. Tajbakhsh, and an unidentified third-party funder.

The court awarded the plaintiffs $1 million in substantial indemnity costs, finding the defendants' conduct, while not amounting to fraud on the court, justified the elevated scale.

However, the court declined to award costs against Mr. Tajbakhsh personally or the third-party funder, as the high threshold for non-party costs (abuse of process or fraud) was not met.

The court also explicitly prohibited the defendants from using Limited Partnership funds to satisfy the costs award.

The plaintiffs, limited partners in three real estate development limited partnerships, sought declarations validating their special resolutions to remove and replace the original general partners.

The dispute arose after the original general partners issued capital calls to pay management fees to an affiliated company, which the plaintiffs argued were unauthorized.

The court found the capital calls were invalid as the management agreements were not approved by special resolution and the general partners failed to seek external financing first.

The court upheld the plaintiffs' special resolutions removing the original general partners due to multiple unremedied defaults, including failure to provide access to financial records, co-mingling of funds, and unauthorized related-party transactions.

The defendants' counterclaims were dismissed.

The plaintiffs, limited partners and their newly appointed general partners, moved for an interlocutory injunction to restrain the former general partners and non-party project companies from dealing with real estate development properties pending a governance trial.

They also sought leave to issue a certificate of pending litigation and to amend their statement of claim.

The court dismissed the motion, finding that an interlocutory injunction could not be granted against the non-party project companies because the plaintiffs had not claimed a permanent injunction against them, nor had they provided an undertaking in damages.

The request for a certificate of pending litigation was also denied as the plaintiffs, being shareholders of the project companies, did not have a triable issue for a direct interest in the properties.