Jen-Yii Liew

The parties separated after a 10.5-year relationship.

The respondent, a high-earning cardiac surgeon, continued to deposit his income into a joint account managed by the applicant for seven years post-separation.

In 2008, the parties signed a separation agreement providing the applicant with $29,000 per month in indefinite spousal support.

The respondent sought to set aside the agreement and claim damages for breach of fiduciary duty regarding the applicant's use of the joint funds.

The court dismissed the fiduciary duty claim, finding no such duty existed between the spouses in these circumstances.

While the court upheld the separation agreement as valid under the Family Law Act, it applied the Miglin framework to override the spousal support provisions under the Divorce Act.

The court found the support quantum was based on significant tax defalcation and far exceeded the applicant's entitlement.

Spousal support was terminated after a short transition period.

Following a successful family law motion granting injunctive relief to prevent dissipation of assets, the moving party sought costs on a full recovery basis.

The court considered Rule 24 of the Family Law Rules and determined that the responding party had acted in bad faith by failing to provide proper financial disclosure, terminating support, and attempting to deal with jointly owned assets while international proceedings were ongoing.

Given the complexity of the litigation, the high financial stakes, and the conduct of the responding party, the court held that full indemnity costs were warranted.

The court ordered payment of substantial legal fees and disbursements to counsel for the moving party within 30 days.