3 total
Vendor liable for outstanding municipal taxes in receiver sale as liability arose prior to closing.
The appeal concerns who is liable for outstanding municipal taxes in a receiver's sale of assets with an approval and vesting order (AVO).
The motion judge found the purchaser liable because the taxes were not yet due at closing.
The Court of Appeal reversed, holding that under s. 307(3) of the Municipal Act, liability for the taxes arose on January 1 of the relevant taxation years, prior to closing.
Therefore, the liability remained with the vendor (the receiver) and was vested out of the purchased assets by the AVO.
Full indemnity costs of $150,000 awarded to plaintiff due to responding party's egregious and deceitful conduct.
The plaintiff sought costs following a successful motion to determine priority between creditors after a judicial sale.
The plaintiff had made an offer to settle for $25,000, which was beaten at the hearing.
The court found the responding party's conduct to be particularly egregious, noting a combination of deceit, frivolous arguments, and repetitive proceedings designed to make collecting a simple debt as expensive as possible.
Consequently, the court awarded the plaintiff full indemnity costs fixed at $150,000.
The court granted priority to a construction lien over a mortgage deemed a fraudulent conveyance.
This motion determined priority between creditors following a judicial sale of a residential property.
Pollard Windows Inc., a construction lien claimant, sought priority over 1746878 Ontario Inc., an assignee of a mortgage.
The court found that the mortgage held by 1746878 Ontario Inc. was a fraudulent conveyance, part of a scheme by the controlling individual (Andrew Ferri) and related entities to defeat creditors.
The court rejected 1746878 Ontario Inc.'s claims of priority, finding that the alleged notice of sale was invalid, it failed to prove any actual advances under the mortgage, and the transaction bore numerous badges of fraud.
Pollard Windows Inc. was granted priority for its judgment and costs.
