Erin Pleet

This decision concerns motions by the Receiver for Bridging Finance Inc. and by BlackRock Funds to lift the stay of proceedings against Gary Man Kin Ng, a bankrupt, and to validate service of a Statement of Claim.

The court granted both motions, finding that the actions for fraud and fraudulent misrepresentation against Ng would not be discharged in bankruptcy, involved sufficient complexity, and required Ng as a necessary party.

The court also validated service of the Statement of Claim on Ng and the Ng Entities, as Ng had actual notice.

The decision reviews the legal test for lifting a bankruptcy stay and the requirements for validating service.

The decision addresses motions by First Trust Management AG, as Trustee of The Salus Rete Trust, to stay or dismiss two related actions on the basis that Ontario lacks jurisdiction or is not a convenient forum.

The court finds that the claims are adequately pleaded, that Ontario has jurisdiction simpliciter based on several presumptive connecting factors (including contracts made in Ontario and torts committed in Ontario), and that Ontario is the most appropriate and convenient forum for the actions.

The motions are dismissed.

This decision addresses three motions in the receivership of the Bridging Funds: (1) the Receiver’s motion for an interim distribution to unitholders, (2) approval of a settlement with the BlackRock Parties, and (3) the unitholders’ motion for a constructive trust.

The court approved the interim distribution but required a sufficient reserve for the disputed Cerieco claim until its final determination.

The BlackRock settlement was approved.

The constructive trust motion was deferred pending resolution of the Cerieco claim.

The decision provides detailed guidance on the treatment of creditor and unitholder claims in a complex receivership under the Securities Act.

The Toronto-Dominion Bank (TD) brought a motion under Rule 5.05 to sever certain allegations advanced by Tarion Warranty Corporation (Tarion) into two separate actions.

Tarion, along with Carlo and Dino Taurasi, opposed the motion.

TD argued that Tarion's negligence claim (related to a cheque kiting scheme) and its claim to set aside a settlement agreement as a fraudulent conveyance were discrete and temporally separate.

The court dismissed the motion, finding no undue complexity, delay, or prejudice, and that the claims arose from the same series of transactions with significant factual overlap, promoting the convenient administration of justice and avoiding multiplicity of proceedings.

The Thomas Canning Claimants appealed two procedural decisions by the Claims Officer in the Bridging Finance Inc. receivership, which denied their requests for extensive pre-hearing disclosure of documents from the Receiver and examinations of third-party witnesses.

The Claimants argued these denials were procedurally unfair and prioritized expediency over their disclosure rights.

The court dismissed the appeal, finding the Claims Officer's decisions were discretionary case management orders entitled to deference, and that no palpable and overriding error or failure of natural justice occurred.

The court emphasized that receivership claims processes are intended to be expeditious and summary, unlike normal civil litigation.

The Trustee of the Alexander Morris Sharpe Trust sought the court's advice and directions on whether legal fees for David and Natasha Sharpe could be paid from the trust, which was established for the "sole and exclusive" benefit of their minor son, Alexander Morris Sharpe.

The Office of the Children's Lawyer opposed, arguing the trust language was clear and restrictive.

The court ruled that the trust funds could not be used to pay the legal fees, as such payments would not be for the "sole and exclusive" benefit of the minor beneficiary, even if there was a collateral benefit.

The Ontario Securities Commission (OSC) brought a motion seeking an order for the issuance of Letters of Request in Commissions under section 152 of the Securities Act.

The OSC required evidence from two individuals, one residing in British Columbia and one in Massachusetts, USA, for a proceeding before the Capital Markets Tribunal concerning Bridging Finance Inc. and its respondents.

The respondents did not oppose the motion.

The court granted the order, finding that the proposed witnesses had relevant evidence and that the Letters of Request and Commissions accorded with Rule 34.07(2) of the Rules of Civil Procedure.

The appellant father sought decision-making authority for the COVID-19 vaccination of his two youngest children.

The motion judge dismissed his application, relying on the mother's internet sources and the children's stated wishes, while dismissing public health information and making inappropriate historical comparisons.

The Court of Appeal found that the motion judge erred by improperly admitting and weighing the mother's unreliable online evidence as expert testimony, failing to properly assess the father's public health evidence, giving undue weight to the children's influenced views, and incorrectly reversing the onus of proof.

The appeal was allowed, granting the father sole decision-making authority for the children's COVID-19 vaccination.

This application concerned an oppression remedy under the Ontario Business Corporations Act, brought by a daughter (applicant) against her mother (respondent) and related corporations in a closely held family business.

The applicant alleged oppressive conduct by the respondent, specifically a debt conversion and share issue that diverted corporate revenues to the respondent and terminated the applicant's long-standing income stream.

The court applied the two-step test for oppression, finding that the applicant had a reasonable expectation of continued financial support and participation in the residual value of the corporation.

The court determined that the respondent's actions breached these reasonable expectations and constituted oppressive conduct.

Consequently, the debt conversion and share issue were set aside.

The court declined to remove the respondent as director but directed the parties to negotiate a fair resolution for ongoing payments based on their respective needs and available resources, with the option to return to court if an agreement could not be reached.

The Receiver brought a motion to extend the appointment of limited partner advisory committees, approve its activities, and approve a process for appointing Representative Counsel for the Unitholders.

The Ad Hoc Committee of Retail Investors raised concerns about the independence of the proposed appointment process.

The court approved the Receiver's activities and the extension of the committees, but modified the Representative Counsel appointment process to include an independent third party to evaluate proposals and make a recommendation to the court.

Following motions by both parties regarding refusals and questions taken under advisement during questioning, the Estate Trustee was largely successful.

Both parties sought costs of the motions.

The court determined the Estate Trustee's entitlement to costs as the successful party and fixed the quantum on a partial indemnity basis at $25,200, plus $500 for a prior appointment, payable by the applicant.

The plaintiffs brought a motion for an interlocutory injunction to prevent the defendants from transferring or encumbering a partnership property without consent or court order.

The dispute arose after the plaintiff was disqualified as a partner for failing to satisfy a cash call, which he alleged was invalid.

The court characterized the requested relief as a mandatory injunction, requiring the plaintiffs to demonstrate a strong prima facie case.

The court found the plaintiffs failed to establish a strong prima facie case regarding the validity of an alleged oral agreement, the invalidity of the cash call, or oppressive conduct.

Furthermore, the plaintiffs failed to show irreparable harm, as damages would be an adequate remedy.

The motion for an injunction was dismissed.

In a bifurcated family law and estate proceeding, both the applicant and the respondent estate brought motions to compel answers to questions refused or taken under advisement during questioning.

The central issue for the first phase of the trial was the validity and enforceability of a 1986 marriage contract.

The court ordered the applicant to produce documents relating to her prior divorce and records from her physician and counsellor, finding them relevant to her understanding of domestic contracts.

The court dismissed the applicant's motion to compel the estate trustee to answer questions regarding the deceased's subsequent estate planning and relationships with lawyers, finding them irrelevant to the 1986 contract or overly broad.

The applicant sought costs of $34,160 on a full recovery basis against a third-party witness who unsuccessfully opposed a motion to be questioned prior to trial.

The third party argued he was a non-party and sought his own costs.

The court found the third party was a party for the purposes of the motion under the Family Law Rules and that the applicant was the successful party.

Applying principles of proportionality and considering the respective offers to settle, the court awarded the applicant costs fixed at $10,000.

The defendant published a report criticizing the governance and contracting practices of the Niagara Peninsula Conservation Authority.

The Authority, its former CAO, and a contractor sued the defendant for defamation.

The defendant brought a motion to dismiss the actions under the anti-SLAPP provisions of the Courts of Justice Act (s. 137.1).

The court dismissed the Authority's action, holding that a government entity cannot sue an individual for defamation.

The court dismissed the remaining plaintiffs' actions because they failed to show the defendant had no valid defence, as the expressions were made on occasions of qualified privilege without malice.

The Liquidator of Maple Bank GmbH's Canadian business sought an interim distribution of surplus funds to the German Insolvency Administrator (GIA) during winding-up proceedings.

The motion was unopposed.

The court approved the interim distribution, finding it appropriate given that adequate reserves were established to cover all proven and potential claims, ensuring no prejudice to Canadian creditors.

The court emphasized a broad, flexible interpretation of insolvency legislation and the policy of assisting foreign insolvency proceedings.

The applicant, HMI, brought a motion to refer a consolidated construction lien action, involving seventeen liens totaling over $42 million, to a single private arbitration and to stay the court proceedings.

The consolidated action was divided into three streams (A, B, C) based on contractual relationships.

The motion was opposed by various lien claimants and other parties.

The court dismissed the motion, finding that a consolidated arbitration could not be ordered due to significant conflicts in arbitration clauses across the different contracts, the inclusion of third parties who had not consented to arbitration, the failure to follow contractual dispute resolution protocols (including mediation), and potential for increased costs and delays for some parties.

The court emphasized the consensual nature of arbitration and declined to impose non-consensual amendments to contracts or stay the court action.

The plaintiff, who was previously investigated for stock fraud and entered into a settlement agreement with the Ontario Securities Commission, sued 67 defendants for malicious prosecution, negligent investigation, and other torts.

Ten motions were brought by 64 defendants to strike the pleadings and dismiss the actions.

The court dismissed the action against the Attorney General of Ontario because the malicious prosecution claim could not succeed, as the criminal proceedings were stayed pursuant to a settlement and thus not terminated in the plaintiff's favour.

The actions against the remaining moving defendants were dismissed as an abuse of process because they attempted to re-litigate facts already settled or judicially determined in prior proceedings.

Following the dismissal of a motion challenging Ontario’s jurisdiction simpliciter and asserting forum non conveniens, the successful party sought costs on a partial indemnity basis of approximately $38,000.

The court considered the reasonableness of the claimed preparation time and whether costs should include fees for both senior and junior counsel.

While acknowledging the value of mentoring junior counsel, the court held that the circumstances did not justify indemnifying the successful party for two counsel on the motion.

After assessing the complexity and importance of the motion and the reasonable expectations of the unsuccessful party, the court reduced the requested amount.

Costs were awarded in the amount of $30,000 all inclusive.

The plaintiffs commenced a proposed class action alleging that the defendant airline improperly charged United States transportation taxes on ticket purchases.

The defendant moved to dismiss or stay the action for lack of jurisdiction and on the basis of forum non conveniens.

The court held that Ontario had presence‑based jurisdiction because the defendant carried on business in Ontario and there was a real and substantial connection to the dispute.

The revenue rule did not bar adjudication because the action did not seek to enforce foreign tax laws but rather challenged the defendant’s collection of charges from customers.

The motion was dismissed with respect to claims relating to tickets paid for in Canada but granted in relation to tickets paid for in the United States, which were stayed as U.S. courts were the clearly more appropriate forum.