Kristen Hogg

Following a trial where the defendant lawyer was ordered to return the plaintiffs' $35,000 deposit, the court determined the quantum of expenses and costs.

The court found the defendant engaged in unreasonable behaviour by misleading the court, failing to produce crucial documents, and hiding the improper release of the deposit.

The plaintiffs were awarded $5,795.50 for legal expenses incurred to recover the deposit, plus $7,500 in costs (including a penalty for unreasonable behaviour) and $416 in disbursements.

The plaintiffs paid a $35,000 deposit into the trust account of the defendant lawyer, who was acting for the vendors in a proposed asset purchase agreement.

The lawyer released the funds to his clients and kept $3,000 for himself before the agreement was even signed, and hid this fact for three years.

The court allowed the self-represented plaintiffs to amend their claim mid-trial due to the lawyer's late disclosure of documents.

The court found the lawyer was willfully blind to his clients' fraudulent scheme and breached his trust obligations to the non-client plaintiffs.

The lawyer was ordered to repay the $35,000 deposit plus up to $15,000 in legal expenses incurred by the plaintiffs.