Jana Steele

This case involved two consolidated actions arising from a failed joint real estate venture.

The plaintiff, 2270752 Ontario Inc., sued Baljit Dhaliwal for breach of trust for failing to return $600,000 advanced for the venture.

Concurrently, the plaintiff sought to set aside a fraudulent conveyance of Baljit Dhaliwal's matrimonial home to his wife, Arvinder Dhaliwal, alleging it was done to defeat creditors.

The court found Baljit Dhaliwal liable for breach of trust and ordered the return of the $600,000.

The court also found the transfer of the matrimonial home to be a fraudulent conveyance under the Fraudulent Conveyances Act, citing multiple "badges of fraud," and set it aside.

The actions against Century 21 New Star Realty Inc. and Arvinder Dhaliwal (for the breach of trust claim) were dismissed, as they were not involved in the breach of trust or vicariously liable.

This case involved two applications heard together, stemming from a share purchase transaction.

Sudhir Thomas, as Seller Representative, sought the release of an indemnity escrow account.

Accenture Inc. brought a cross-application seeking a declaration that Thomas was responsible to indemnify Accenture for potential damages from a wrongful dismissal claim by Tania Prsa, to be paid from the escrow.

A mini-trial was conducted to determine the characterization of "bonus" payments made to Prsa (as employment income or shareholder profit distributions) and her entitlement to unreimbursed business expenses.

The court found that the "bonus" payments were shareholder profit distributions, not employment compensation, and that Prsa's expense claims were barred by a comprehensive release clause in the Share Purchase Agreement.

Consequently, the Indemnity Escrow Account was ordered released to the Seller Representative.