Kevin Donald Toyne

The Court dismissed an appeal from a civil contempt finding against a lawyer who returned trust funds to his client despite a Mareva injunction.

The Court held that civil contempt requires proof beyond a reasonable doubt of an intentional act that breaches a clear order with notice, and does not require contumacious intent.

The Court also held the motions judge erred by reopening and setting aside the initial contempt finding on evidence that should have been filed at the liability stage.

A bankrupt sought discharge while the trustee opposed on the basis that the bankrupt abandoned a matrimonial equalization claim that could have generated funds for creditors.

The trustee argued the bankrupt’s change of litigation position caused the estate to incur substantial legal fees and lost a potential recovery.

The court held that the Bankruptcy and Insolvency Act duty requiring a bankrupt to aid in realization of assets does not obligate a bankrupt to alter positions in separate family litigation, particularly where doing so would affect personal family interests.

The trustee’s litigation strategy was reasonable but the costs could not be shifted to the bankrupt absent an agreement or misconduct.

The court granted the discharge with only a short suspension reflecting prior delay.

Two competing procedural motions arose in litigation concerning control of a corporate bank account following the separation of spouses involved in a family business.

The respondents sought leave to examine a bank employee whose interactions with the applicant were central to allegations about improper changes to corporate signing authority that resulted in the freezing of a corporate account.

The court held that the evidence was relevant and that any delay in seeking the examination resulted from prior counsel’s error, which should not prejudice the parties.

Leave was therefore granted to examine the bank employee.

The applicant’s motion to examine opposing counsel about the authenticity and delivery of a corporate requisition was found premature due to potential solicitor‑client privilege concerns and the availability of alternative avenues for obtaining the information.

The moving party sought production of documents and information held by a court‑appointed receiver in connection with an investigation related to alleged securities fraud proceedings before the Ontario Securities Commission.

The court considered whether the principles governing third‑party production established in R. v. O'Connor and R. v. McNeil applied to records held by a receiver acting as an officer of the court.

It held that although receivers generally are not required to disclose investigative materials beyond their reports, that protection cannot override an accused’s constitutional right to make full answer and defence.

Applying the O'Connor framework, the court required the moving party to demonstrate that the requested records were “likely relevant.” Only limited categories of documents met that threshold, including certain materials from lawyers, the accountant, and recovered emails, while most requests were rejected as speculative fishing expeditions.

Following the dismissal of an action and related summary judgment proceedings, the successful defendants sought substantial partial indemnity costs against the plaintiffs.

The court considered the factors under Rule 57.01(1) of the Rules of Civil Procedure and assessed the reasonableness of the claimed fees, hourly rates, and the nature of work performed.

The court emphasized that costs awards should relate to steps authorized by the rules and excluded various client communications and strategic consultations that were not directly tied to procedural steps in the litigation.

Significant reductions were applied to certain categories of claimed work, including general preparation and work associated with abandoned or unnecessary motions.

The court ultimately fixed global cost awards payable by the plaintiffs to each set of defendants.