Appeal allowed; trial judgment for civil fraud set aside as elements of fraudulent misrepresentation were not met.
The appellant appealed a trial judgment finding him liable for civil fraud and ordering him to pay $30,526 plus costs.
The respondent had paid the appellant's CRA tax lien to clear title to a jointly owned family residence transferred to her pursuant to a family law settlement, and subsequently sued him after he declared bankruptcy, alleging his failure to disclose the tax debt constituted fraudulent misrepresentation.
The Divisional Court allowed the appeal and dismissed the action, finding the trial judge erred in law by applying a test for fraudulent non-disclosure rather than the strict four-part test for fraudulent misrepresentation, and made palpable and overriding errors of fact unsupported by the evidence.
Moore v. Morris, 2017 ONSC 1980